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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 - 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
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