SOUTH CAROLINA REVENUE AND FISCAL AFFAIRS OFFICE S TATEMENT OF ESTIMATED FISCAL IMPACT WWW.RFA.SC.GOV • (803)734-3793 This fiscal impact statement is produced in compliance with the South Carolina Code of Laws and House and Senate rules. The focus of the analysis is on governmental expenditure and revenue impacts and may not provide a comprehensive summary of the legislation. Page 1 of 2 H. 3163 Fiscal Impact Summary This bill adds strokes to the list of impairments or injuries that are presumed to have arisen out of and in the course of employment for firefighters. The bill also revises the presumption entitlement criteria to include conditions developed while actively on duty, instead of actively engaged in fighting a fire. The Workers’ Compensation Commission (WCC) manages workers’ compensation claims and regulation in South Carolina. WCC indicates that any potential increase in firefighter workers' compensation claims can be managed with existing staff and resources. Therefore, this bill will have no fiscal impact on WCC. The fiscal impact of this bill on the Office of the State Fire Marshall, under the Department of Labor, Licensing, and Regulation (LLR), is pending, contingent upon a response from the agency. While this bill may increase the number of workers’ compensation claims by firefighters, WCC cannot determine the impact of this bill on workers’ compensation premiums at this time. Workers’ compensation premiums tax revenue is allocated to Other Funds revenue of WCC and to General Fund revenue. Therefore, the impact of this bill on Other Funds revenue of WCC and to the General Fund is undetermined. The Revenue and Fiscal Affairs Office (RFA) contacted all forty-six counties and the Municipal Association of South Carolina (MASC) regarding the potential fiscal impact of the bill. Florence County indicated that this would expand benefits for their firefighters through both coverage of strokes and broadening coverage to include on-duty actions. Oconee County indicated that this bill would increase local expenditures by increasing worker’s compensation insurance costs. MASC also indicates that this bill may result in an increase in firefighter’s workers’ compensation claims costs. However, as the number of firefighters that may claim worker’s compensation as a result of this bill is unknown, the increase in the number of claims and the increase in the insurance costs are undetermined. Bill Number: H. 3163 Introduced on Januar y 14, 2025 Subject: Occupational Diseases Requestor: House Labor, Commerce, and Industry RFA Analyst(s): Vesely and Griffith Impact Date: March 28, 2025 __________________________________ Frank A. Rainwater, Executive Director DISCLAIMER: THIS FISCAL IMPACT STATEMENT REPRESENTS THE OPINION AND INTERPRETATION OF THE AGENCY OFFICIAL WHO APPROVED AND SIGNED THIS DOCUMENT. IT IS PROVIDED AS INFORMATION TO THE GENERAL ASSEMBLY AND IS NOT TO BE CONSIDERED AS AN EXPRESSION OF LEGISLATIVE INTENT. Page 2 of 2 H. 3163 Explanation of Fiscal Impact Introduced on January 14, 2025 State Expenditure This bill adds strokes to the list of impairments or injuries that are presumed to have arisen out of and in the course of employment for firefighters. The bill also revises the presumption entitlement criteria to include conditions developed while actively on duty, instead of actively engaged in fighting a fire. WCC manages workers’ compensation claims and regulation in South Carolina. WCC indicates that any potential increase in firefighter workers' compensation claims as a result of this bill can be managed with existing staff and resources. Therefore, this bill will have no fiscal impact on WCC. The fiscal impact of this bill on the Office of the State Fire Marshall, under LLR, is pending, contingent upon a response from the agency. State Revenue This bill adds strokes to the list of impairments or injuries that are presumed to have arisen out of and in the course of employment for firefighters. The bill also revises the presumption entitlement criteria to include conditions developed while actively on duty, instead of actively engaged in fighting a fire. Workers’ compensation insurance premiums are taxed at a rate of 2.5 percent on both traditional workers’ compensation insurers and companies self-insuring. WCC retains as Other Funds the greater of 50 percent or $2,200,000 of the tax on self-insurers. The remaining tax revenue is retained by the General Fund. While this bill may increase the number of workers’ compensation claims by firefighters, WCC cannot determine the impact of this bill on workers’ compensation premiums at this time. Therefore, the impact of this bill on Other Funds revenue of WCC and to the General Fund is undetermined. Local Expenditure RFA contacted all forty-six counties and MASC regarding the potential fiscal impact of the bill. Florence County indicated that this would expand benefits for their firefighters through both coverage of strokes and broadening coverage to include on-duty actions. Oconee County indicated that this bill would increase local expenditures by increasing worker’s compensation insurance costs. MASC also indicates that this bill may result in an increase in firefighter’s workers’ compensation claims costs. However, as the number of firefighters that may claim worker’s compensation as a result of this bill is unknown, the increase in the number of claims and the increase in the insurance costs are undetermined. Local Revenue N/A