TITLE: CONCERNING ADMINISTRATIVE HEARINGS IN WORKERS' COMPENSATION CASES CONDUCTED BY ADMINISTRATIVE LAW JUDGES, AND MAKING AN APPROPRIATION IN CONNECTION THEREWITH.

Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues General Fund
State Expenditures Cash Fund Exempt	$28,344
FTE Position Change	0.4 FTE	0.0 FTE
Other State Impact: None
Effective Date: Upon signature of the Governor.
Appropriation Summary for FY 1999-2000: Legislative Department - $18,344 and 0.4 FTE - Cash Fund Exempt Department of Labor and Employment - $10,000 - Cash Fund Exempt
Local Government Impact: None

This bill, as amended by the House Appropriations Committee, March 26, 1999, requires that the rules of evidence and requirements of proof in worker's compensation hearings conform to those in civil nonjury cases in the district courts.

The bill requires the Division of Administrative Hearings to establish a pilot program to allow each party to an administrative hearing on workers' compensation issues to strike the name of an administrative law judge from a list of law judges available to conduct the hearing. The pilot program is to be conducted September 1, 1999, to August 31, 2000. The division is to report its findings to the appropriate legislative committee of reference by December 31, 2000.

The bill requires the division to make a questionnaire available to any person involved in a worker's compensation hearing to solicit the person's comments on the fairness of the hearing and the ALJ appointed to the hearing. The division is to place all returned questionnaires in the personnel file of the appropriate ALJ.

The bill creates a task force to study and make recommendations to a legislative interim committee concerning the use and expectations of ALJs in workers' compensation hearings. The bill specifies the 18 members of the task force who are to be appointed by June 1, 1999. The task force members are to not be compensated. The task force is to meet no later than June 15, 1999, and is to make recommendations to the interim committee no later than August 1, 1999.

The bill creates a legislative interim committee to evaluate the use of ALJs and evaluate the effectiveness of the workers' compensation hearing process. The seven legislative members are to be appointed by July 15, 1999; the first committee meeting is to be held by August 15, 1999; and the committee report is to be made no later than October 1, 1999. The Office of Legislative Legal Services and Legislative Council are to provide staff assistance.

The amended bill appropriates $10,000 Workers' Compensation Cash Fund to the Department of Labor and Employment, and $18,344 and 0.4 FTE Workers' Compensation Cash Fund to the Legislative Department for FY 1999-2000.

Pilot program. The Division of Administrative Hearings in the Department of Personnel/GSS will be able to absorb the costs of administering the pilot program within existing resources during FY 1999-2000. This assessment is based upon the assumption the pilot program will be limited to those administrative hearings conducted in the metro-Denver area, and that the division will not be required to provide administrative support to the task force or interim committee.

However, in the event the program is fully implemented at a later date for the entire state, the division may incur additional administrative and operating expenses. The division will evaluate whether those costs can be absorbed within existing resources at that time.

Task force and interim committee. The bill establishes a task force and interim committee to evaluate the use of ALJs and the effectiveness of the workers' compensation hearing process. The task force and committee are to meet between June 1 October 1, 1999. The bill allows the Division of Workers' Compensation to provide staff assistance to the task force, and requires the Office of Legislative Legal Services and Legislative Council Staff to provide staff assistance to the interim committee.

The state expenditures to support the task force and interim committee are based upon the following assumptions:

• that the task force, and any subsequent subcommittees, will meet at least weekly between June 1 and August 1, 1999;

• that the Division of Workers' Compensation staff will be required to attend the task force and subcommittee meetings, and will prepare documentation or reports;

• that Legislative Council Staff will provide staff assistance to the task force and the interim committee;

• that the Office of Legislative Legal Services will provide staff assistance to the interim committee; and

• that the seven legislative members of the interim committee will be reimbursed at a rate of $149 (per diem and expenses) per day.

Table 2 provides a summary of the Division of Workers' Compensation expenditures for FY 1999-2000 to support the task force and subcommittee activities.

Table 2 - Division of Workers Compensation Workers' Compensation Cash Fund Expenditures
	FY 1999-2000
Contracted Personal Services	$4,094
Legal Services	2,106
Operating	3,800
Total Expenses	$10,000

Table 3 provides a provides a summary of the Legislative Department expenditures for FY 1999-2000 to support the task force and interim committee activities.

Table 3 - Legislative Department Workers' Compensation Cash Fund Expenditures
	FY 1999-2000
Personal Services Staff Attorney Senior Research Asst Subtotal PERA/Medicare Total	0.1 FTE -$3,256 0.3 FTE - 9,302 12,558 1,614 $14,172
Per Diem/Expenses - 7 x 4 x $149	$4,172
Total Expenses	0.4 FTE - $18,344

The Department of Labor and Employment will require a Workers' Compensation Cash Fund appropriation of $10,000 for FY 1999-2000. Of this amount, the Department of Law will require a cash fund exempt spending authority of $2,106.

The Legislative Department will require a Workers' Compensation Cash Fund appropriation of $18,344 and 0.4 FTE for FY 1999-2000.