Colorado Legislative Council Staff

STATE

FISCAL NOTE

No State General Fund Impact

State Cash Fund Revenue Impact


Drafting Number:

Prime Sponsor(s):

LLS 98-312

Rep. Tate

Sen. Chlouber

Date:

Bill Status:

Fiscal Analyst:

February 1, 1998

House Business Affairs

Will Meyer (866-4976)

 

TITLE:            CONCERNING ALTERNATIVE PENALTIES FOR EMPLOYERS NOT MAINTAINING REQUIRED WORKERS’ COMPENSATION COVERAGE.


Summary of Legislation


            The provisions of this bill would allow the director of the Division of Workers’ Compensation, Department of Labor and Employment, to impose either the current statutory authority and issue a cease and desist order to an employer who fails or failed to maintain workers’ compensation insurance; or as provided in this bill, to impose a fine of not more than $500 for every day a policy is or was not in force. The bill also would allow the director to file any final orders imposing a fine to be filed with the Clerk of the District Court. After all of the opportunities for review have been exhausted, such an order would have the effect of, and constitute, a judgement of the District Court. The bill would become effective upon signature of the Governor.

 

STATE FISCAL IMPACT SUMMARY

FY 1998/99

FY 1999/2000

State Revenues

General Fund

Workers’ Compensation Cash Fund - Fine Revenues

Workers’ Compensation Cash Fund - Surcharge Revenues



Potential Increase in Revenues

Decrease in Surcharge Revenues

State Expenditures

General Fund

Other Fund


 


 

FTE Position Change

None

None

Local Government Impact — None.



State Revenues


            The provisions of this bill authorize the director of the Division of Workers’ Compensation to impose fines. To the extent fines are imposed, revenues to the Workers’ Compensation Fund would increase. Under current law, any revenue that would be generated by fines would result in an offsetting reduction in the surcharge assessed against workers’ compensation insurance premiums to fund the administration of the division. This would result in no net increase to state revenues.



State Expenditures


            The provisions of the bill would not have a significant affect on the present workload of any state agency. The Judicial Branch currently hears appeals from these kind of cases.


 

Spending Authority


            The provisions of this bill would not have a significant expenditure impact on any agency of the state or unit of local government. Therefore, no additional spending authority is required.



Departments Contacted


            Labor and Employment          Law                Personnel                    Judicial Branch