View Bill Status
View Bill Text
View Statement of Purpose / Fiscal Impact
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
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature Second Regular Session - 2006IN 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 thirty14(30) days after April 1, 1998, andwithin thirty (30) days subsequent to Sep- 15 tember 1 and April 1 of eachsuccessiveyear,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 throughJune 30December 31.The37amount of each responsible entity's or person's assessment which is due38and payable within thirty (30) days subsequent to April 1 of any year39shall be calculated by dividing one-half (1/2) of the total applicable40assessment amount by the responsible entity's or person's proportionate41share of the total gross indemnity benefits paid on open worker's compen-42sation claims during the preceding period of time from July 1 through43December 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 thesixtwelve (612) month period fromJulyJanuary 1 through 9 December 31 no later thanJanuaryMarch 31 of the next succeeding year.and10shall report their total gross indemnity benefits paid during the six (6)11month period from January 1 through June 30 no later than July 31 of said12year.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 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