PREPARED BY: Suzanne Houlden
LB 313 DATE PREPARED: February 12, 2025
PHONE: 402-471-0057
Revision: 00
FISCAL NOTE
LEGISLATIVE FISCAL ANALYST ESTIMATE
ESTIMATE OF FISCAL IMPACT – STATE AGENCIES (See narrative for political subdivision estimates)
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS See below See below
Any Fiscal Notes received from state agencies and political subdivisions are attached following the Legislative Fiscal Analyst Estimate.
LB 313 proposes changes to subrogation regarding third-party claims and the d istribution of proceeds in the settlement of third-party
claims under the Worker s’ Compensation Act. The bill removes the fair and equitable settlement hearing and adds a formula for
reimbursement for cases in which a prior written agreement was not obtained. After deducting the reasonable expenses of making a
recovery, the employee would receive one third of the remaining settlement; the employer or workers’ compensation insurer would be
reimbursed for payments already made; and the employee would receive the remaining balance.
The State’ s Workers’ Compensation program is self-insured. The W orkers’ Compensation program in the Risk Management division of
the Department of Administrative Services (DAS) is a revolving fund program, funded by annual assessments to agencies, boards and
commissions, and the University and state colleges. A ny increase in costs could increase the amount assessed to any of these entities.
LB 313 is not anticipated to substantially impact DAS – Risk Management and the workers’ compensation benefits paid, but certain
cases could have factors that result in poten tially higher future payments. However, as this is hypothetical, the fiscal impact is not
determinable at this time.
It its fiscal note response, DAS provides a table illustrating how any f uture fiscal impact would likely be spread among various fund
types. The Fiscal Office has no basis to disagree with the analysis provided by DAS.
Fund Type Percentage
General Fund 60%
Cash Fund 26%
Federal Fund 10%
Revolving Fund 4%
Total 100%
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AG ENCY & POLT. SUB. RESPONSE
LB: 313 AM: AGENCY/POLT. SUB: Nebraska Workers’ Compensation Court
REVIEWED BY: Gary Bush DATE: 01/22/2025 PHONE: (402) 471-4161
COMMENTS: Agree with the agency estimate of No Fiscal Impact.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 313 AM: AGENCY/POLT. SUB: Department of Administrative Services (DAS)
REVIEWED BY: Ryan Walton DATE: 2/12/2025 PHONE: (402) 471-4174
COMMENTS: No basis to disagree with the DAS’ assessment of indeterminate fiscal impact from LB 313.
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 313 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Department of Administrative Services (DAS) – Risk
Management
Prepared by:
(3) Sarah Skinner Date Prepared:
(4)
1/27/25 Phone:
(5)
402-419-4229
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
FEDERAL FUNDS
REVOLVING
FUNDS
TOTAL FUNDS
Explanation of Estimate:
LB 313 proposes changes to subrogation regarding third -party claims and the distribution of proceeds in the
settlement of third-party claims under the Workers’ Compensation Act. The bill removes the fair and equitable
settlement hearing and adds a formula for reimbursement for any case in which a prior written agreement was not
obtained. The bill would require that after deducting the reasonable expenses of making the recovery, one-third of
the remainder shall be paid to the employee or his or her personal representative. After that distribution, the
employer or workers’ compensation insurer shall be paid for all compensation payments that they have already
made or may be obligated to make in the future. After these distributions, the employee would receive any
remaining balance.
The State’s workers’ compensation program is self-insured. The DAS - Risk Management w orkers’ compensation
program is a revolving fund program and is funded by an annual assessment that includes all agencies, boards and
commissions, the University and state colleges. Any increase in costs could increase the amount assessed.
The table below summarizes the estimated impact of any increase in the assessment by fund type. The allocation
by fund type is based on a five- year (2020- 2024) average of the payment of previous workers’ compensation
assessments.
Fund Type Percentage
General Fund 60%
Cash Fund 26%
Federal Fund 10%
Revolving Fund 4%
Total 100%
LB 313 is not anticipated to substantially impact DAS – Risk Management and the workers’ compensation benefits
paid, but certain cases could have factors that result in potentially higher future payments. However, as this is
hypothetical, the fiscal impact is not determinable at this time.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
25-26 26-27
2025-26
EXPENDITURES
2026-27
EXPENDITURES
Benefits………………………………...……
Operating…………………………...……….
Travel………………………………………..
Capital outlay…………………...…………..
Aid…………………………………………...
Capital improvements……………………...
TOTAL……………………………… .....
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 313 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Nebraska Workers’ Compensation Court
Court Administrator
Prepared by:
(3) Jill G. Schroeder Date Prepared:
(4)
January 21, 2025 Phone:
(5)
402.471.3602
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
Explanation of Estimate:
No Fiscal Impact.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
25-26 26-27
2025-26
EXPENDITURES
2026-27
EXPENDITURES
Benefits…………… …………………...……
Operating…………………………...……….
Travel………………………………………..
Capital outlay…………………...…………..
Aid……………………………………… …...
Capital improvements……………………...
TOTAL……………………………… .....