2007 Legislation
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SENATE BILL NO. 1021 – Industrial Special Indemnity Fund

SENATE BILL NO. 1021

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Bill Status



S1021......................................................by STATE AFFAIRS
INDUSTRIAL SPECIAL INDEMNITY FUND - Amends existing law relating to the
Industrial Special Indemnity Fund to revise a reporting date.
                                                                        
01/17    Senate intro - 1st rdg - to printing
01/18    Rpt prt - to St Aff
01/24    Rpt out - rec d/p - to 2nd rdg
01/25    2nd rdg - to 3rd rdg
01/31    3rd rdg - PASSED - 35-0-0
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
      Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Gannon, Geddes,
      Goedde, Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst,
      Little, Lodge, Malepeai, McGee, McKague, McKenzie, Pearce,
      Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor - McKenzie
    Title apvd - to House
02/01    House intro - 1st rdg - to St Aff
02/05    Rpt out - rec d/p - to 2nd rdg
02/06    2nd rdg - to 3rd rdg
02/07    3rd rdg - PASSED - 67-0-3
      AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
      Block, Bock, Boe, Bolz, Brackett, Chadderdon, Chavez, Chew, Clark,
      Collins, Durst, Edmunson, Eskridge, Hagedorn, Hart, Harwood, Henbest,
      Henderson, Jaquet, Killen, King, Kren, Labrador, Lake, LeFavour,
      Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer, Moyle,
      Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ring, Ringo,
      Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(2), Shepherd(8),
      Shirley, Shively, Smith(30), Smith(24), Snodgrass, Stevenson, Thayn,
      Trail, Vander Woude, Wills, Wood(27), Wood(35), Mr. Speaker
      NAYS -- None
      Absent and excused -- Bradford, Crane, Nielsen
    Floor Sponsor - Ring
    Title apvd - to Senate
02/08    To enrol
02/09    Rpt enrol - Pres signed
02/12    Sp signed
02/13    To Governor
02/14    Governor signed
         Session Law Chapter 8
         Effective: 07/01/07

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1021
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE INDUSTRIAL SPECIAL INDEMNITY FUND;  AMENDING  SECTION  72-327,
  3        IDAHO CODE, TO REVISE A REPORTING DATE.
                                                                        
  4    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  5        SECTION  1.  That  Section  72-327, Idaho Code, be, and the same is hereby
  6    amended to read as follows:
                                                                        
  7        72-327.  ASSESSMENT -- METHOD OF CALCULATION AND  PRORATION  --  TIME  FOR
  8    PAYMENT. (1) The state insurance fund, every authorized self-insurer and every
  9    surety  authorized  under  the  Idaho insurance code or by the director of the
 10    department of insurance to transact worker's compensation insurance in  Idaho,
 11    in  addition  to  all other payments required by statute, shall, within thirty
 12    (30) days subsequent to September 1 and April 1  of  each  year,  pay  to  the
 13    industrial  commission for deposit in the industrial special indemnity fund an
 14    assessment as follows:
 15        (a)  The total annual assessment payable in the manner set forth  in  this
 16        section  shall  be  equal  in  amount  to  two (2) times the amount of all
 17        expenses of the industrial special  indemnity  fund  incurred  during  the
 18        immediately  preceding  fiscal  year less the existing cash balance of the
 19        industrial special indemnity fund as of the thirtieth day of June  of  the
 20        immediately preceding fiscal year;
 21        (b)  The  total  annual assessment shall be apportioned on a pro rata per-
 22        centage basis among and between the state insurance fund, every authorized
 23        self-insurer and every surety authorized under the Idaho insurance code or
 24        by the director of the department of insurance to transact  worker's  com-
 25        pensation  insurance  in  Idaho  based upon the proportionate share of the
 26        total gross amount of indemnity benefits paid on Idaho worker's  compensa-
 27        tion claims during the applicable reporting period;
 28        (c)  The  amount of each responsible entity's or person's assessment which
 29        is due and payable within thirty (30) days subsequent to September  1  and
 30        April  1 of any year shall be calculated by dividing one-half (1/2) of the
 31        total annual assessment amount by the  responsible  party's  proportionate
 32        share of the total gross amount of indemnity benefits paid during the pre-
 33        ceding period of time from January 1 through December 31. In no case shall
 34        the amount of any such assessment be less than two hundred dollars ($200).
 35        (2)  In arriving at the total gross amount of indemnity benefits paid, the
 36    amount of indemnity benefits shall include those payments provided for or made
 37    under  the provisions of the worker's compensation law with respect to "income
 38    benefits" as defined in section 72-102, Idaho Code.
 39        (3)  For the purposes of this section, the responsible entities or persons
 40    shall report to the industrial commission their total gross indemnity benefits
 41    paid during the twelve (12) month period from January 1 through December 31 no
 42    later than March 31 of the next succeeding year.
 43        (4)  A penalty for the late filing of any report required by this  section
                                                                        
                                       2
                                                                        
  1    will be assessed in accordance with the rules of the industrial commission.
  2        (5)  The industrial special indemnity fund shall certify to the industrial
  3    commission  annually  the  amount of the assessment payable under this section
  4    and the industrial commission shall prepare and  submit  to  each  responsible
  5    entity  or person notice of its pro rata amount payable hereunder on or before
  6    April 1, 1998, and thereafter on or before September 1 and  April  1  of  each
  7    succeeding year.
  8        (6)  For  the purposes of this section, the cash balance of the industrial
  9    special indemnity fund in any fiscal year shall mean all  money  deposited  or
 10    invested by the state treasurer to the credit of the industrial special indem-
 11    nity fund pursuant to sections 72-325 and 72-326, Idaho Code, and all interest
 12    earned thereon.
 13        (7)  For  purposes of this section, the term "fiscal year" shall mean that
 14    period of time commencing upon July 1 in any year and ending upon June  30  of
 15    the next succeeding year.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE

                            RS 16455

The Industrial Special Indemnity Fund ("ISIF") is funded through 
assessments levied on worker's compensation insurers.  Section 
72-327(3), Idaho Code, addresses reporting requirements for 
these worker's compensation insurers that are related to these 
assessments.  The code section was amended in the 2006 session 
(SB 1295).  An incorrect date was in that bill.  This 
legislation will correct that date.

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:	Ted Roper
Agency:	Administration, Dept. of
Phone:	332-1836

STATEMENT OF PURPOSE/FISCAL NOTE	                S 1021