LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6706 NOTE PREPARED: Feb 17, 2025
BILL NUMBER: SB 309 BILL AMENDED:
SUBJECT: Substitute System of Worker's Compensation.
FIRST AUTHOR: Sen. Zay BILL STATUS: 2
nd
Reading - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
DEDICATED
FEDERAL
Summary of Legislation: The bill provides that an employer who is a member in good standing with the
Small Business Aid, Inc., and provides a substitute system of worker's compensation and worker's
occupational diseases compensation as established by the Small Business Aid, Inc., is not required to seek
the approval of the Worker's Compensation Board in order to provide the substitute system of compensation
in lieu of compensation and insurance provided under the worker's compensation and worker's occupational
diseases compensation laws. It makes corresponding changes.
Effective Date: July 1, 2025.
Explanation of State Expenditures: The bill would reduce workload for the Worker’s Compensation
Board. Under the bill, the Worker’s Compensation Board would no longer be required to approve substitute
systems of worker’s compensation for employers who are members in good standing of the Small Business
Aid, Inc. and who provide an equivalent substitute system of compensation.
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Worker’s Compensation Board.
Local Agencies Affected:
Information Sources:
Fiscal Analyst: Camille Tesch, 317-232-5293.
SB 309 1