Colorado Legislative Council Staff
NO FISCAL IMPACT
December 26, 1997
House Business Affairs
Will Meyer (866-4976)
TITLE: CONCERNING PAYMENTS TO WORKERS’ COMPENSATION FUNDS BY INSURERS OFFERING WORKERS’ COMPENSATION LARGE DEDUCTIBLE POLICIES.
Summary of Legislation
The provisions of the bill would require the Commissioner of Insurance to adopt regulations to ensure that payments to the Workers’ Compensation Cash Fund and Cost Containment Cash Fund from surcharges on premiums paid for workers’ compensation insurance that have deductibles in excess of the maximum imposed by statute, reflect the value of any reduction in premium taxes due through the use of such deductibles. The bill would become effective upon signature of the Governor.
The provision requiring the commissioner to adopt regulations would have a minimal impact on the workload of the division. This increase in workload could be absorbed by current staff, but may require re-prioritizing existing workload. The state, and most units of local government are self-insured and would not be impacted by the provisions of this bill. The provisions of this bill would not increase the revenues to the Workers’ Compensation Cash Fund and the Cost Containment Cash Fund administered by the Division of Workers’ Compensation, Department of Labor and Employment, but would re-allocate the surcharge on premiums paid by issuers of policies of workers’ compensation insurance to reflect the value of any reduction in premiums achieved through the use of such deductibles. The bill would not have any other impact on the division, and would not impact any other agency of the state, or unit of local government. Therefore, this bill is assessed as having no fiscal impact.
Regulatory Agencies Labor and Employment