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_B_S255 (Senate)
Amends: 39-A MRSA §152, 39-A MRSA §154

SENATE AMENDMENT "/3,, to COMMITTEE AMENDMENT "A" 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 additional 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 emergency 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,' 
Page l-LR0283(11) 
SENATE AMENDMENT 
SENATE AMENDMENT "/3,, 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: 
o Sec. 1. 39-A MRSA §152, sub-§2-A is enacted to read: 
2-A. 
Electronic filing rulemating. 
The board shall adopt 
rules requiring the electronic filing of information required 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-B 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 
required 
to 
submit 
reports. 
The rules must relate specific forms required 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 §154, sub-§6, as amended by PL 2003, c. 93, 
§l, 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'..<.. 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 
91'..<.. 
$6,860,000 beginning in the 2002-03 fiscal year..<.. 
$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 ,~" to COMMITTEE AMENDMENT "A" to S.P. 21, L.D. 
above the board's allocated budget and within the 10% 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 Senators appointed 
by the President of the Senate, one representing each of the 2 
political parties in the Legislature with the greatest number of 
members, 
members of the House of Representatives appointed by 
the Speaker of the House of Representatives, one representing 
each of the 
political parties in the Legislature with the 
greatest 
number 
of 
members, 
and 
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. 
member 
Chairs. 
The first-named Senator 
of the House of Representatives are 
commission. 
and the first-named 
the chairs of the 
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. 
SENATE AMENDMENT 
r-
.~:~. ":iI 
..... , ...... 
;-~. 
SENATE AMENDMENT .. 3" to COMMITTEE AMENDMENT "A" to S.P. 21, L.D. 
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 
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 121st 
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. 
If 
the 
commission 
requires 
extension of time to complete its study and make its 
may 
apply 
to 
the 
Legislative 
Council, 
which 
may 
extension. 
a 
limited 
report, it 
grant 
an 
9. 
Commission budget. 
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 
SENATE AMENDMENT 
SENATE AMENDMENT ~" to COMMITTEE AMENDMENT "A" to S.P. 21, L.D. 
provide the commission chairs and staff with a status 
the 
commission 
budget, 
expenditures 
incurred 
and 
available funds. 
Sec. 
4. 
Appropriations 
and 
allocations. 
The 
appropriations and allocations are made. 
WORKERS' COMPENSATION BOARD 
Administration -
Workers' Compensation Board 0183 
report on 
paid 
and 
following 
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 
2003-04 
$70,000 
2004-05 
$70,000 
SENATE AMENDMENT 
.... 
. :,'f 
<l~'~-
SENATE AMENDMENT "15" to COMMITTEE AMENDMENT "A" to S.P. 21, L.D . 
Other Special Revenue Funds Total 
$70,000 
$70,000 
Administration -
Workers' Compensation 
Board 0183 
Ini tiati ve: 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 
Other Special Revenue Funds Total 
Administration - Workers' Compensation 
Board 0183 
2003-04 
($20,004) 
($20,004) 
2004-05 
($25,413) 
($25,413) 
Initiative: Provides for the elimination of one Hearing 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 2Q03-04. 
Funding is available for 
these expenditures in fiscal year 2003-04 from the unexpended 
cash in fiscal year 2002-03. 
Other Special Revenue Funds 
Personal Services 
All Other 
Other Special Revenue Funds Total 
JiORKERS' CC»IPEHSATION BOARD 
2003-04 
$30,000 
140,000 
$170,000 
2004-05 
$0 
o 
$0 
SENATE AMENDMENT 
· 
.. ' .... ~ .. 
.... . 1.. .. ' .. 
~~,' ' 
SENATE AMENDMENT ::J3 It to COMMITTEE AMENDMENT 
It A It to S. P. 21, L. D. 
DEPARTMENT 'l'OTALS 
2003-04 
2004-05 
OTHER SPECIAL REVENUE FUNDS 
$1,725,238 
$1,623,726 
DEPARTMENT 'l'OTAL -
ALL FUNDS 
$1,725,238 
$1,623,726 
LEGISLAnJRE 
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. 
Other Special Revenue Funds 
2003-04 
2004-05 
Personal Services 
$880 
$0 
All Other 
Other Special Revenue Funds Total 
$1,710 
$0 
LEGISLAnJRE 
2003-04 
2004-05 
OTHER SPECIAL REVENUE FUNDS 
$1,710 
$0 
DEPAR"l'MENT TOrAL -
ALL FUNDS 
$1,710 
$0 
SECTION TOrALS 
2003-04 
2004-05 
OTHER SPECIAL REVENUE FUNDS 
$1,726,948 
$1,623,726 
SECTION TOrAL -
ALL FUNDS 
$1,726,948 
$1,623,726 
Emergency clause. 
In view of the emergency cited in the 
preamble, this Act takes effect July 1, 2003.' , 
SUMMARY 
This amendment provides that the commission to review the 
budget process of the Workers' Compensation Board consists of 2 
Senators 
appointed 
by 
the 
President 
of 
the 
Senate, 
one 
representing each of the 2 political parties in the Legislature 
wi th the greatest number of members, 
members of the House of 
Representatives 
appointed 
by 
the 
Speaker 
of 
the 
House 
of 
Representatives, one representing each of the 2 political parties 
in the Legislature with the greatest number of members, 
and 2 
members of the Workers' Compensation Board, one representing and 
appointed by the labor members of the board and one representing 
SENATE AMENDMENT 
SENATE AMENDMENT "6,, to COMMITTEE AMENDMENT "A" to S.P. 21, L.D. 
and appointed by the management members of the board. 
It also 
incorporates changes made by Senate Amendment 
"A" to Committee 
Amendment "A." 
FISCAL NOTE REQUIRED 
(See attached) 
SPONSORED BY, ~l. ~ 
(Senator EDMONDS) 
COUNTY: 
Cumberland 
SENATE AMENDMENT 
'" 
. 
Appropriations/Allocations 
Other Special Revenue Funds 
Revenue 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Approved: 06(04'03 ~ac 
1215t Maine Legislature 
Office of Fiscal and Program Re"iew 
LD 35 
A.n Act to Increase the Assessment on \Vorkers' Compensation Insurance 
To Fund the \Vorkers' Compensation Board Administrative Fund 
-
LR 0283(11) 
Fiscal Note for Senate Amendment 'ii" to Committee Amendment "A" 
Sponsor: Sen. Edmonds 
Fiscal Note Required: Yes 
Fiscal Note 
2003-04 
$236,948 
$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 $236,948 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 $1,726,948 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(11) - Fiscal Note - Page 1 of 1