Read the full stored bill text
EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
SECOND REGULAR SESSION
SENATE BILL NO. 932
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR CRAWFORD.
5246S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 287.690 and 287.715, RSMo, and to enact in lieu thereof two new sections
relating to workers' compensation.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 287.690 and 287.715, RSMo, are 1
repealed and two new sections enacted in lieu thereof, to be 2
known as sections 287.690 and 287.715, to read as follows:3
287.690. Prior to December 31, 1993, for the purpose 1
of providing for the expense of administering this chapter, 2
every person, partnership, association, corporation, whether 3
organized under the laws of this or any other state or 4
country, the state of Missouri, including any of its 5
departments, divisions, agencies, commissions, and boards or 6
any political subdivisions of the state who self-insure or 7
hold themselves out to be any part self-insured, company, 8
mutual company, the parties to any interindemnity contract, 9
or other plan or scheme, and every other insurance carrier, 10
insuring employers in this state against liability for 11
personal injuries to their employees, or for death caused 12
thereby, under this chapter, shall pay, as provided in this 13
chapter, tax upon the net deposits, net premiums or net 14
assessments received, whether in cash or notes in this 15
state, or on account of business done in this state, for 16
such insurance in this state at the rate of two percent in 17
SB 932 2
lieu of all other taxes on such net deposits, net premiums 18
or net assessments, which amount of taxes shall be assessed 19
and collected as herein provided. Beginning October 31, 20
1993, and every year thereafter, the director of the 21
division of workers' compensation shall estimate the amount 22
of revenue required to administer this chapter and the 23
director shall determine the rate of tax to be paid in the 24
following calendar year pursuant to this section commencing 25
with the calendar year beginning on January 1, 1994. If the 26
balance of the fund estimated to be on hand on December 27
thirty-first of the year each tax rate determination is made 28
is less than one hundred ten percent of the previous year's 29
expenses plus any additional revenue required due to new 30
statutory requirements given to the division by the general 31
assembly, then the director shall impose a tax not to exceed 32
two percent in lieu of all other taxes on net deposits, net 33
premiums or net assessments, rounded up to the nearest [one- 34
half] one-tenth of a percentage point, which amount of taxes 35
shall be assessed and collected as herein provided. The net 36
premium equivalent for individual self-insured employers 37
shall be based on average rate classifications calculated by 38
the department of commerce and insurance as taken from 39
premium rates filed by the twenty insurance companies 40
providing the greatest volume of workers' compensation 41
insurance coverage in this state. For employers qualified 42
to self-insure their liability pursuant to this chapter, the 43
rates filed by such group of employers in accordance with 44
subsection 4 of section 287.280 shall be the net premium 45
equivalent. Any group of political subdivisions of this 46
state qualified to self-insure their liability pursuant to 47
this chapter as authorized by section 537.620 may choose 48
either the average rate classification method or the filed 49
SB 932 3
rate method, provided that the method used may only be 50
changed once without receiving the consent of the director 51
of the division of workers' compensation. Every entity 52
required to pay the tax imposed pursuant to this section and 53
section 287.730 shall be notified by the division of 54
workers' compensation within ten calendar days of the date 55
of the determination of the rate of tax to be imposed for 56
the following year. Net premiums, net deposits or net 57
assessments are defined as gross premiums, gross deposits or 58
gross assessments less cancelled or returned premiums, 59
premium deposits or assessments and less dividends or 60
savings, actually paid or credited. 61
287.715. 1. For the purpose of providing for revenue 1
for the second injury fund, every authorized self-insurer, 2
and every workers' compensation policyholder insured 3
pursuant to the provisions of this chapter, shall be liable 4
for payment of an annual surcharge in accordance with the 5
provisions of this section. The annual surcharge imposed 6
under this section shall apply to all workers' compensation 7
insurance policies and self-insurance coverages which are 8
written or renewed on or after April 26, 1988, including the 9
state of Missouri, including any of its departments, 10
divisions, agencies, commissions, and boards or any 11
political subdivisions of the state who self-insure or hold 12
themselves out to be any part self-insured. Notwithstanding 13
any law to the contrary, the surcharge imposed pursuant to 14
this section shall not apply to any reinsurance or 15
retrocessional transaction. 16
2. Beginning October 31, 2005, and each year 17
thereafter, the director of the division of workers' 18
compensation shall estimate the amount of benefits payable 19
from the second injury fund during the following calendar 20
SB 932 4
year and shall calculate the total amount of the annual 21
surcharge to be imposed during the following calendar year 22
upon all workers' compensation policyholders and authorized 23
self-insurers. The amount of the annual surcharge 24
percentage to be imposed upon each policyholder and self- 25
insured for the following calendar year commencing with the 26
calendar year beginning on January 1, 2006, shall be set at 27
and calculated against a percentage, not to exceed three 28
percent, of the policyholder's or self-insured's workers' 29
compensation net deposits, net premiums, or net assessments 30
for the previous policy year, rounded up to the nearest [one- 31
half] one-tenth of a percentage point, that shall generate, 32
as nearly as possible, one hundred ten percent of the moneys 33
to be paid from the second injury fund in the following 34
calendar year, less any moneys contained in the fund at the 35
end of the previous calendar year. All policyholders and 36
self-insurers shall be notified by the division of workers' 37
compensation within ten calendar days of the determination 38
of the surcharge percent to be imposed for, and paid in, the 39
following calendar year. The net premium equivalent for 40
individual self-insured employers shall be based on average 41
rate classifications calculated by the department of 42
commerce and insurance as taken from premium rates filed by 43
the twenty insurance companies providing the greatest volume 44
of workers' compensation insurance coverage in this state. 45
For employers qualified to self-insure their liability 46
pursuant to this chapter, the rates filed by such group of 47
employers in accordance with subsection 4 of section 287.280 48
shall be the net premium equivalent. Any group of political 49
subdivisions of this state qualified to self-insure their 50
liability pursuant to this chapter as authorized by section 51
537.620 may choose either the average rate classification 52
SB 932 5
method or the filed rate method, provided that the method 53
used may only be changed once without receiving the consent 54
of the director of the division of workers' compensation. 55
The director may advance funds from the workers' 56
compensation fund to the second injury fund if surcharge 57
collections prove to be insufficient. Any funds advanced 58
from the workers' compensation fund to the second injury 59
fund must be reimbursed by the second injury fund no later 60
than December thirty-first of the year following the 61
advance. The surcharge shall be collected from 62
policyholders by each insurer at the same time and in the 63
same manner that the premium is collected, but no insurer or 64
its agent shall be entitled to any portion of the surcharge 65
as a fee or commission for its collection. The surcharge is 66
not subject to any taxes, licenses or fees. 67
3. All surcharge amounts imposed by this section shall 68
be deposited to the credit of the second injury fund. 69
4. Such surcharge amounts shall be paid quarterly by 70
insurers and self-insurers, and insurers shall pay the 71
amounts not later than the thirtieth day of the month 72
following the end of the quarter in which the amount is 73
received from policyholders. If the director of the 74
division of workers' compensation fails to calculate the 75
surcharge by the thirty-first day of October of any year for 76
the following year, any increase in the surcharge ultimately 77
set by the director shall not be effective for any calendar 78
quarter beginning less than sixty days from the date the 79
director makes such determination. 80
5. If a policyholder or self-insured fails to make 81
payment of the surcharge or an insurer fails to make timely 82
transfer to the division of surcharges actually collected 83
from policyholders, as required by this section, a penalty 84
SB 932 6
of one-half of one percent of the surcharge unpaid, or 85
untransferred, shall be assessed against the liable 86
policyholder, self-insured or insurer. Penalties assessed 87
under this subsection shall be collected in a civil action 88
by a summary proceeding brought by the director of the 89
division of workers' compensation. 90
6. Notwithstanding subsection 2 of this section to the 91
contrary, the director of the division of workers' 92
compensation shall collect a supplemental surcharge not to 93
exceed one percent for calendar years 2014 to 2026 of the 94
policyholder's or self-insured's workers' compensation net 95
deposits, net premiums, or net assessments for the previous 96
policy year, rounded up to the nearest one-quarter of a 97
percentage point. All policyholders and self-insurers shall 98
be notified by the division of the supplemental surcharge 99
percentage to be imposed for such period of time as part of 100
the notice provided in subsection 2 of this section. The 101
provisions of this subsection shall expire on December 31, 102
2026. 103
7. Funds collected under the provisions of this 104
chapter shall be the sole funding source of the second 105
injury fund. 106
✓