2006 Legislation
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SENATE BILL NO. 1295 – Industrial indemnity fund, assessmt

SENATE BILL NO. 1295

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Bill Status



S1295......................................................by STATE AFFAIRS
INDUSTRIAL INDEMNITY FUND - Amends existing law relating to the Industrial
Special Indemnity Fund to revise the calculation of assessments; and to
provide for the reporting of benefits paid during a one year period.
                                                                        
01/23    Senate intro - 1st rdg - to printing
01/24    Rpt prt - to Com/HuRes
02/15    Rpt out - rec d/p - to 2nd rdg
02/16    2nd rdg - to 3rd rdg
02/22    3rd rdg - PASSED - 34-0-1
      AYES -- Andreason, Brandt(Harper), Broadsword, Bunderson, Burkett,
      Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
      Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Langhorst,
      Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce, Richardson,
      Schroeder, Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- Keough
    Floor Sponsor - Compton
    Title apvd - to House
02/23    House intro - 1st rdg - to Bus
03/14    Rpt out - rec d/p - to 2nd rdg
03/15    2nd rdg - to 3rd rdg
03/23    3rd rdg - PASSED - 64-1-5
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer, Bell,
      Bilbao, Block, Boe, Bolz, Brackett, Bradford, Cannon, Chadderdon,
      Clark, Collins, Crow, Deal, Edmunson, Ellsworth, Eskridge, Field(18),
      Field(23), Garrett, Hart, Harwood, Henbest, Henderson, Jaquet, Kemp,
      Lake, LeFavour, Loertscher, Martinez, Mathews, McGeachin, McKague,
      Miller, Mitchell, Moyle, Nonini, Pasley-Stuart, Pence, Raybould,
      Ring, Ringo, Roberts, Rusche, Rydalch, Sali, Sayler, Schaefer,
      Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Smylie,
      Snodgrass, Stevenson, Trail, Wills, Wood
      NAYS -- Mr. Speaker
      Absent and excused -- Bedke, Black, Denney, Nielsen, Smith(24)
    Floor Sponsor - Nonini
    Title apvd - to Senate
03/24    To enrol
03/27    Rpt enrol - Pres signed
03/28    Sp signed
03/29    To Governor
03/30    Governor signed
         Session Law Chapter 247
         Effective: 07/01/06

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1295
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE INDUSTRIAL SPECIAL INDEMNITY FUND;  AMENDING  SECTION  72-327,
  3        IDAHO  CODE,  TO  REMOVE OBSOLETE REFERENCES, TO REVISE THE CALCULATION OF
  4        ASSESSMENTS AND TO PROVIDE FOR THE REPORTING OF BENEFITS PAID DURING A ONE
  5        YEAR PERIOD.
                                                                        
  6    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  7        SECTION 1.  That Section 72-327, Idaho Code, be, and the  same  is  hereby
  8    amended to read as follows:
                                                                        
  9        72-327.  ASSESSMENT  --  METHOD  OF  CALCULATION AND PRORATION -- TIME FOR
 10    PAYMENT. (1) The state insurance fund, every authorized self-insurer and every
 11    surety authorized under the Idaho insurance code or by  the  director  of  the
 12    department  of insurance to transact worker's compensation insurance in Idaho,
 13    in addition to all other payments required by statute,  shall,  within  thirty
 14    (30)  days after April 1, 1998, and within thirty (30) days subsequent to Sep-
 15    tember 1 and April 1 of each successive year, thereafter, pay  to  the  indus-
 16    trial  commission  for  deposit  in  the  industrial special indemnity fund an
 17    assessment as follows:
 18        (a)  The total annual assessment payable in the manner set forth  in  this
 19        section  shall  be  equal  in  amount  to  two (2) times the amount of all
 20        expenses of the industrial special  indemnity  fund  incurred  during  the
 21        immediately  preceding  fiscal  year less the existing cash balance of the
 22        industrial special indemnity fund as of the thirtieth day of June  of  the
 23        immediately preceding fiscal year;
 24        (b)  The  total  annual assessment shall be apportioned on a pro rata per-
 25        centage basis among and between the state insurance fund, every authorized
 26        self-insurer and every surety authorized under the Idaho insurance code or
 27        by the director of the department of insurance to transact  worker's  com-
 28        pensation  insurance  in  Idaho  based upon the proportionate share of the
 29        total gross amount of indemnity benefits paid on Idaho worker's  compensa-
 30        tion claims during the applicable reporting period;
 31        (c)  The  amount of each responsible entity's or person's assessment which
 32        is due and payable within thirty (30) days subsequent to September  1  and
 33        April  1 of any year shall be calculated by dividing one-half (1/2) of the
 34        total annual assessment amount by the  responsible  party's  proportionate
 35        share of the total gross amount of indemnity benefits paid during the pre-
 36        ceding  period  of  time  from  January 1 through June 30 December 31. The
 37        amount of each responsible entity's or person's assessment  which  is  due
 38        and  payable  within  thirty  (30)  days subsequent to April 1 of any year
 39        shall be calculated by dividing one-half (1/2)  of  the  total  applicable
 40        assessment  amount  by  the responsible entity's or person's proportionate
 41        share of the total gross indemnity benefits paid on open worker's  compen-
 42        sation  claims  during  the  preceding  period of time from July 1 through
 43        December 31. In no case shall the amount of any such  assessment  be  less
                                                                        
                                           2
                                                                        
  1        than two hundred dollars ($200).
  2        (2)  In arriving at the total gross amount of indemnity benefits paid, the
  3    amount of indemnity benefits shall include those payments provided for or made
  4    under  the provisions of the worker's compensation law with respect to "income
  5    benefits" as defined in section 72-102, Idaho Code.
  6        (3)  For the purposes of this section, the responsible entities or persons
  7    shall report to the industrial commission their total gross indemnity benefits
  8    paid during the six twelve (612) month period  from  July  January  1  through
  9    December  31  no  later than January March 31 of the next succeeding year. and
 10    shall report their total gross indemnity benefits  paid  during  the  six  (6)
 11    month  period  from  January  1  through June 30 no later than July 31 of said
 12    year.
 13        (4)  A penalty for the late filing of any report required by this  section
 14    will be assessed in accordance with the rules of the industrial commission.
 15        (5)  The industrial special indemnity fund shall certify to the industrial
 16    commission  annually  the  amount of the assessment payable under this section
 17    and the industrial commission shall prepare and  submit  to  each  responsible
 18    entity  or person notice of its pro rata amount payable hereunder on or before
 19    April 1, 1998, and thereafter on or before September 1 and  April  1  of  each
 20    succeeding year.
 21        (6)  For  the purposes of this section, the cash balance of the industrial
 22    special indemnity fund in any fiscal year shall mean all  money  deposited  or
 23    invested by the state treasurer to the credit of the industrial special indem-
 24    nity fund pursuant to sections 72-325 and 72-326, Idaho Code, and all interest
 25    earned thereon.
 26        (7)  For  purposes of this section, the term "fiscal year" shall mean that
 27    period of time commencing upon July 1 in any year and ending upon June  30  of
 28    the next succeeding year.

Statement of Purpose / Fiscal Impact


                     STATEMENT OF PURPOSE

                           RS 15342

The Industrial Special Indemnity Fund ("ISIF") is funded through 
assessments levied on worker's compensation insurers, based on 
the proportionate share of each insurer's "indemnity" payments 
in the state.  The system provides adequate funding for the 
ISIF, but the statutory methodology is both cumbersome and 
expensive.

Amend Section 72-327, Idaho Code, to provide that insurers 
report once per year as opposed to twice per year.  As a 
consequence, insurers will pay twice per year in equal 
installments as opposed to twice per year based on the prior six 
(6) months of indemnity.  This change will not effect or reduce 
funding of the ISIF and will streamline processes and reduce 
administrative costs of the ISIF.


                         FISCAL NOTE

None






CONTACT
Name:	Joanna Guilfoy
Agency:	Administration, Dept. of
Phone:	332-1832


STATEMENT OF PURPOSE/FISCAL NOTE	S 1295