Page 1 August 2, 2022 HB 22-1347 Legislative Council Staff Nonpartisan Services for Colorado’s Legislature Final Fiscal Note Drafting Number: Prime Sponsors: LLS 22-0920 Rep. Daugherty Sen. Rodriguez Date: Bill Status: Fiscal Analyst: August 2, 2022 Signed into Law Clare Pramuk | 303-866-2677 clare.pramuk@state.co.us Bill Topic: WORKERS' COMPENSATION UPDATES Summary of Fiscal Impact: ☐ State Revenue ☒ State Expenditure ☐ State Transfer ☐ TABOR Refund ☐ Local Government ☒ Statutory Public Entity The bill amends the Workers’ Compensation Act to allow for advance payments for mileage reimbursements, clarify how benefit amounts are determined for permanent medical impairments, increase benefits for funeral and burial expenses, and require additional reporting. It increases state and statutory public entity expenditures beginning in FY 2022-23. Appropriation Summary: No appropriation is required. Fiscal Note Status: The fiscal note reflects the enacted bill. Summary of Legislation The bill amends the Workers’ Compensation Act to: allow for advance payments for mileage reimbursements in certain situations; clarify how benefit amounts are determined for permanent medical impairments when the schedule of injuries amount payable exceeds the amount payable for nonscheduled injuries; increase benefits for funeral and burial expenses; repeal the Special Funds Board and move the duties related to the Immediate Payment Fund and Guaranty Fund for self-insured employers to the Director of the Division of Workers’ Compensation; and require reporting of active medical treatments lasting more than 180 days after the date of injury. State Expenditures The bill will impact the state as an employer and regulator of the Workers’ Compensation Act. Page 2 August 2, 2022 HB 22-1347 Department of Personnel and Administration. The bill will increase benefits paid for permanent medical impairments and funeral and burial expenses. This increase can be addressed within existing appropriations. Department of Labor and Employment. The bill will increase claims reporting to the Workers’ Compensation Division and require the division director to administer the self-insured employer assessments and establish requirements and qualifications for claims administrators. This increase can be addressed within existing appropriations. Statutory Public Entity Pinnacol Assurance was created in statute as a political subdivision to provide workers’ compensation insurance to employers in Colorado. This bill will increase annual funeral and burial benefits payments and require additional staffing to meet the additional reporting requirements. These increases are not expected to increase employer premiums. Effective Date The bill was signed into law by the Governor on June 8, 2022, and takes effect August 9, 2022, assuming no referendum petition is filed. It applies to injuries occurring, and mileage reimbursement claims in existence, on or after the bill’s effective date. State and Local Government Contacts Labor Law Personnel Pinnacol Assurance The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each fiscal year. For additional information about fiscal notes, please visit: leg.colorado.gov/fiscalnotes.