An Act To Increase the Assessment on Workers Compensation Insurance To Fund the Workers Compensation Board Administrative Fund
Maine Legislature, Session 121, LD 0035
Committee Amendment CA_A-SA_A_S251 (Senate)

SENATE AMENDMENT "A" to COMMITTEE AMENDMENT 
II A II to S. P. 21, 
L.D. 
35, Bill, "An Act To Increase the Assessment on Workers' 
Compensation Insurance To Fund the Workers' 
Compensation Board 
Administrative Fund" 
Amend the amendment by striking out everything after the 
title and before the 
summary and inserting in its place the 
following: 
'Amend the bill by inserting after the title and before the 
enacting clause the following: 
'Emergency preamble. Whereas, Acts of the Legislature do not 
become effective until 90 days after adjournment unless enacted 
as emergencies; and 
Whereas, the operating expenses necessary for the Workers' 
Compensation Board to provide adequate services to the employers 
and workers of this State have increased to a level beyond that 
contemplated by the current assessment limit; and 
Whereas, if addi tional funding is not available before the 
90-day period has 
expired, it may 
become 
necessary for 
the 
Workers' 
Compensation Board to 
suspend the 
employee 
advocate 
program and layoff the advocate staff; and 
Whereas, in the judgment of the Legislature, these facts 
create an e'!lergency within the meaning of the Constitution of 
Maine 
and 
require 
the 
following 
legislation 
as 
immediately 
necessary for the preservation of the public peace, health and 
safety; now, therefore, r 
Page l-LR0283(9) 
SENATE AMENDMENT 
.. ~ 
r::,\ • 
SENATE AMENDMENT .. A .. to COMMITTEE AMENDMENT "A" to S.P. 21, L.D. 
Further amend the bill by striking out everything after the 
enacting clause and before the summary and inserting in its place 
the following: 
'Sec. I. 39-A MRSA §I52, sub-§2-A is enacted to read: 
2-A. 
Electronic filing rulemaking. 
The board shall adopt 
rules reguiring the electronic filing of information reguired by 
this Act and by board rule. 
Rules adopted pursuant to this 
subsection are routine technical rules as defined in Title 5, 
chapter 375~ subchapter 2-A. 
A. 
The rules must be developed through the consensus-based 
rule 
development process set forth in Title 5, 
section 
8051-8 and must include as participants representatives of 
employers, insurers and 3rd-party administrators. 
B. 
The rules must include written standards and procedures 
for 
implementation of 
the 
standards, 
which 
may 
include 
definition 
of 
the 
applicable 
programming 
interface 
for 
in-state 
and 
out-of-state 
entities 
reguired 
to 
submit 
reports. 
The rules must relate specific forms reguired to 
be filed with data points in the standards. 
Before adopting the rules, the board shall test the applicable 
application programming interfaces and standards to ensure that 
the program operates successfully. 
Sec. 2. 39-A MRSA §I54, sub-§6, as amended by PL 2003, c. 93, 
§1, is further amended to read: 
6. 
Assessment levied. 
The assessments levied under this 
section may not be designed to produce more than $6,000,000 in 
revenues annually beginning in the 1995-96 fiscal year, more than 
$6,600,000 annually beginning in the 1997-98 fiscal year, more 
than $6,735,000 beginning in the 1999-00 fiscal year, more than 
$7,035,000 in the 2001-02 fiscal year 91'.,L. more than $6,860,000 
beginning in the 
2002-03 
fiscal 
year, 
more 
than 
$8,390,000 
beginning 
in 
the 
2003-04 
fiscal 
year, 
more 
than 
$8,565,000 
beginning in the 2004-05 fiscal year or more than $8,525,000 
beginning in the 2005-06 fiscal year. 
Assessments collected that 
exceed 
$6,000,000 
beginning 
in 
the 
1995-96 
fiscal 
year, 
$6,600,000 
beginning in the 
1997-98 
fiscal 
year, 
$6,735,000 
beginning in the 1999-00 fiscal year, $7,035,000 in fiscal year 
2001-02 
or $6,860,000 beginning in the 2002-03 
fiscal 
year.,L. 
$8,390,000 
beginning in the 
2003-04 
fiscal 
year, 
$8,565,000 
beginning in the 2004-05 fiscal year or $8,525,000 beginning in 
the 2005-06 fiscal year by a margin of more than 10'\, must be 
refunded to those who paid the assessment. 
Any amount collected 
SENATE AMENDMENT 
SENATE AMENDMENT "A" to COMMITTEE AMENDMENT "A" to S.P. 21, L.D. 
above the board's allocated budget and within the lO~ margin must 
be used to create a reserve of up to 1/4 of the board's annual 
budget. 
The board, by a majority vote of its membership, may use 
its reserve to assist in funding its Personal Services account 
expenditures 
and 
All 
Other 
account expenditures 
and 
to help 
defray the costs incurred by the board pursuant to this Act 
including administrative expenses, consulting fees and all other 
reasonable costs incurred to administer this Act. 
The board 
shall 
notify 
the 
chairs 
and 
members 
of 
the 
joint standing 
committee 
of 
the 
Legislature 
having 
jurisdiction over 
labor 
matters whenever 
the board 
receives approval 
from 
the State 
Budget Officer and the Governor to use reserve funds to increase 
its 
allotment 
above 
the 
allocation 
authorized 
by 
the 
Legislature. 
Any collected amounts or savings above the allowed 
reserve must be used to reduce the assessment for the following 
fiscal year. 
The board shall determine the assessments prior to 
May 1st and shall assess each insurance company or association 
and self-insured employer its pro rata share for expenditures 
during the fiscal year beginning July 1st. 
Each self-insured 
employer shall pay the assessment on or before June 1st. 
Each 
insurance company or association shall pay the assessment in 
accordance with subsection 3. 
Sec. 3. Review. 
A commission is established to review the 
budget process of the Workers' Compensation Board. 
1. 
Members. The commission consists of 2 members of the 
Joint Standing Committee on Labor, one representing each of the 2 
political parties in the Legislature with the greatest number of 
members, appointed by the chairs of the Joint Standing Committee 
on Labor, and 2 members of the Workers' Compensation Board, one 
representing and appointed by the labor members of the board and 
one representing and appointed by the management members of the 
board. 
2. 
Chairs. 
The members from the Joint Standing Committee 
on Labor are the chairs of the commission. 
3. 
Appointments; convening of commission. 
All appointments 
must be made no later than 30 days following the effective date 
of 
this 
Act. 
The 
appointing 
authorities 
shall 
notify 
the 
Executive 
Director 
of 
the 
Legislative 
Council 
once 
all 
appointments 
have 
been 
completed. 
Within 
days 
after 
appointment of all members, the chairs shall call and convene the 
first meeting of the commission. 
4. 
Duties. 
The commission shall review the process used by 
the Workers' Compensation Board to establish, approve and monitor 
its budget and determine whether improvements are needed. 
The 
commission shall determine whether recommendations regarding the 
SENATE AMENDMENT 
SENATE AMENDMENT "A" to COMMITTEE AMENDMENT "A" to S.P. 21, L.O. 
budget process contained in the 1997 Coopers and Lybrand report 
and the 2001 Berry, 
Dunn, 
McNeil and Parker report have been 
implemented 
and, 
if 
not, 
whether 
and 
how 
they 
should 
be 
implemented. 
5. 
Report. 
The commission shall report its findings and 
recommendations, along with any recommended legislation, to the 
Joint Standing Committee on Labor not later than December 3, 
2003. 
The Joint Standing Committee on Labor is authorized to 
submit legislation to the Second Regular Session of the l2lst 
Legislature in response to the report. 
6. 
Expenses and per diem. 
Commission 
members 
who 
are 
Legislators are entitled to receive legislative per diem, 
as 
defined in the Maine Revised Statutes, Title 3, section 2, and 
reimbursement for travel and other necessary expenses related to 
their 
attendance 
at meetings 
of 
the 
commission. 
Commission 
members who are members of the Workers' Compensation Board are 
entitled to per diem and expenses as provided in Title 39-A, 
section 151, subsection 6. 
The Workers' Compensation Board shall 
transfer 
sufficient 
funds 
from 
its 
reserve 
fund 
to 
the 
Legislature 
to 
cover 
the costs of legislative per 
diem 
and 
expenses for commission meetings. 
7. 
Staff. 
The Workers' 
Compensation Board shall provide 
staffing to the commission. 
Upon approval by the Legislative 
Council, the Office of Policy and Legal Analysis and the Office 
of Fiscal and Program Review shall also provide staff assistance 
to the commission. 
8. 
Extension. 
extension of time to 
may 
apply 
to 
the 
extension. 
If 
the 
commission 
requires 
a 
limited 
complete its study and make its report, it 
Legislative 
Council, 
which 
may 
grant 
an 
9. 
COlmlission budqet. 
The chairs of the commission, with 
assistance 
from 
the 
commission 
staff, 
shall 
administer 
the 
commission's budget. 
Within 10 days after its first meeting, the 
commission shall present a work plan and proposed budget to the 
Legislative Council for its approval. 
The commission may not 
incur expenses that would result in the commission's exceeding 
its approved budget. 
Upon 
request from 
the 
commission, 
the 
Executive Director of the Legislative Council 
shall promptly 
provide the commission chairs and staff with a status report on 
the 
commission 
budget, 
expenditures 
incurred 
and 
paid 
and 
available funds. 
Sec. 
4. 
Appropriations 
and 
allocations. 
appropriations and allocations are made. 
The 
following 
SENATE AMENDMENT 
SENATE AMENDMENT ".4" to COMMITTEE AMENDMENT "A" to S.P. 21, L.D. 
WORKERS' COMPENSATION BOARD 
Administration - Workers' Compensation Board 0183 
Initiative: 
Allocates funds for the board to contract with the 
Department 
of 
Labor 
for 
programming 
services 
to 
implement 
electronic filing by insurers and self-insurers. 
Other Special Revenue Funds 
All Other 
Other Special Revenue Funds Total 
Administration - Workers' Compensation 
Board 0183 
2003-04 
$40,000 
$40,000 
2004-05 
$40,000 
$40,000 
Initiative: 
Provides 
for 
increased 
revenue 
allocation, 
restoration of positions and All Other costs for the central 
office, dispute resolution and the worker advocate programs to 
continue 
program 
operations. 
It also 
restores 
fiscal 
year 
2004-05 funding for the law clerk at the administrative office of 
the courts. 
Other Special Revenue Funds 
Positions - Legislative Count 
Personal Services 
All Other 
Other Special Revenue Funds Total 
Administration - Workers' Compensation 
Board 0183 
2003-04 
(23.000) 
$1,363,043 
242,711 
$1,605,754 
2004-05 
(24.000) 
$1,431,589 
247,794 
$1,679,383 
Initiative: 
Allocates funds for Department of Labor programming 
services. 
Other Special Revenue Funds 
All Other 
Other Special Revenue Funds Total 
Administration - Workers' Compensation 
Board 0183 
2003-04 
$70,000 
$70,000 
2004-05 
$70,000 
$70,000 
Ini tiative: Provides for the reduction in 
All Other funds for 
the purpose of staying within the assessment level recommended by 
the board. 
other Special Revenue Funds 
All Other 
2003-04 
($20,004) 
2004-05 
($25,413) 
SENATE AMENDMENT 
SENATE AMENDMENT .. A .. to COMMITTEE AMENDMENT "A" to S.P. 21, L.D. 
Other Special Revenue Funds Total 
($20,004) 
($25,413) 
Administration -
Workers' Compensation 
Board 0183 
Initiative: Provides for the elimination of one Hearings Officer 
position for the purpose of staying within recommended available 
resources. 
Other Special Revenue Funds 
Positions - Legislative Count 
Personal Services 
Other Special Revenue Funds Total 
Administration - Workers' Compensation 
Board 0183 
2003-04 
(-1.000) 
($140,512) 
($140,512 ) 
2004-05 
(-1.000) 
($140,244) 
($140,244) 
Initiative: 
Allocates funds to contract for temporary worker 
advocate and clerical support services and associated overtime 
for the Worker Advocate Program offices in Portland and Augusta. 
Recent changes by the Bureau of Accounts and Controls prohibit 
the encumbering of a contract in fiscal year 2002-03 for services 
to be provided in fiscal year 2003-04. 
Funding is available for 
these expenditures in fiscal year 2003-04 from the unexpended 
cash in fiscal year 2002-03. 
Other Special Revenue Funds 
2003-04 
2004-05 
Personal Services 
$30,000 
$0 
All Other 
140,000 
Other Special Revenue Funds Total 
$170,000 
$0 
WORKERS' COMPENSATION BOARD 
DEPARTMENT TOTALS 
2003-04 
2004-05 
OTHER SPECIAL REVENUE FUNDS 
$1,725,238 
$1,623,726 
DEPARTMENT TOTAL -
ALL FUNDS 
$1,725,238 
$1,623,726 
LEGISLATURE 
Commission to Review the Budget 
Process of the Workers' Compensation Board 
Initiative: 
Allocates funds to reflect the reimbursement to be 
received from the Workers' 
Compensation Board reserve fund to 
cover the costs of legislative per diem and expenses. 
SENATE AMENDMENT 
SENATE AMENDMENT "A" to COMMITTEE AMENDMENT "A" to s. P. 21, L. D. 
Other Special Revenue Funds 
2003-04 
2004-05 
Personal Services 
$440 
$0 
All Other 
Other Special Revenue Funds Total 
$855 
$0 
LEGISLATURE 
2003-04 
2004-05 
OTHER SPECIAL REVENUE FUNDS 
$855 
$0 
DEPARTMENT TOTAL -
ALL FUNDS 
$855 
$0 
SECTION TOTALS 
2003-04 
2004-05 
OTHER SPECIAL REVENUE FUND 
$1,726,093 
$1,623,726 
SECTION TOTAL - ALL FUNDS 
$1,726,093 
$1,623,726 
Emergency clause. 
In view of the emergency cited in the 
preamble, this Act takes effect July 1, 2003.' , 
SUMMARY 
This amendment increases the maximum allowable assessment to 
support the activities of the Workers' 
Compensation Board to 
$8,390,000 in fiscal year 2003-04, 
$8,565,000 in fiscal year 
2004-05 and $8,525,000 in fiscal year 2005-06. 
The bill restores 
the worker 
advocate 
and support staff positions 
to 
continue 
program operation. 
Included in the increased assessment cap for 
fiscal years 2003-04 and 2004-05 is $40,000 for the board to 
contract for programming services to implement electronic filing 
by insurers and self-insurers. 
The amendment requires the Workers' 
Compensation Board to 
adopt rules requiring the electronic filing of information with 
the board. 
The rules are routine technical rules but must be 
developed through the consensus-based rule development process 
described in the Maine Administrative Procedure Act. 
The amendment also creates a 4-member commission to review 
the 
Workers' 
Compensation 
Board's 
budget 
process 
for 
establishing, 
approving 
and 
monitoring 
its 
budget, 
with 
Legislators and 2 members of the Workers' 
Compensation Board. 
The commission will report its findings and recommendations to 
the Joint Standing Committee on Labor by December 3, 2003. 
SENATE AMENDMENT 
SENATE AMENDMENT "A" to COMMITTEE AMENDMENT "A" to S. P. 21, L. D. 
This 
amendment 
adds 
an 
emergency preamble 
and clause 
and 
specifies an effective date of July 1, 2003. 
FISCAL NOTE REQUIRED 
(See attached) 
SPONSORED BY, 
~i}~~.!\, 
(Senator EDMONDS) 
COUNTY: 
Cumberland 
SENATE AMENDMENT 
Appropriations/Allocations 
Other Special Revenue Funds 
Revenue 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Approved: 06/02/03 frac 
Office of Fiscal and Program Review 
LD35 
An Act to Increase the Assessment on Workers' Compensation Insurance 
To Fund the Workers' Compensation Board Administrative Fund 
LR 0283(09) 
Fiscal Note for House Amendment 'A" to Committee Amendment "A" 
Sponsor: Sen. Edmonds 
Fiscal Note Required: Yes 
Fiscal Note 
2003-04 
$236,093 
$40,000 
2004-05 
($41,274) 
$40,000 
Projections 
2005-06 
($81,274) 
$0 
Projections 
2006-07 
($81,274) 
$0 
This amendment increases the Workers' Compensation Board assessment cap by $40,000 in fiscal years 2003-04 and 
2004-05. This amendment also increases the Other Special Revenue Fund allocation for the Workers' Compensation 
Board by $236,093 in fiscal year 2003-04 and decreases the Other Special Revenue Fund allocation by $41,274 in 
fiscal year 2004-05. 
As amended, this bill increases the Workers' Compensation Board assessment cap to $8,390,000 in fiscal year 2003-
04, $8,565,000 in fiscal year 2004-05, and $8,525,000 in fiscal year 2005-06. As amended, this bill includes Other 
Special Revenue Funds allocations of $1,726,093 and $1,623,726 in fiscal years 2003-04 and 2004-05, respectively, 
for the costs associated with restoring 22 positions in fiscal year 2003-04 and 23 positions in fiscal year 2004-05 and 
for contracting for programming services with the Department of Labor, including the costs associated with 
implementing an electronic filing system. As amended, this bill also provides for the costs of the legislative per diem 
and expenses associated with the Commission to Review the Budget Process of the Workers' Compensation Board. 
LR0283(9) - Fiscal Note - Page 1 of 1