RICHARDSON: WORKERS' COMP BILL NEEDS STUDY

JEFFERSON CITY - Although a House committee has made a number of changes in the Senate version of a workers' compensation reform bill, other amendments are likely to be offered when the bill is debated on the floor next week, state Rep. Mark Richardson, R-Poplar Bluff, said.

Richardson is a member of the House Workers' Compensation and Employment Security Committee, which was formed this year to focus on the workers' compensation issue. Richardson joined the two other Republicans on the committee in voting against a committee substitute, which passed on a party-line vote.

Business leaders, including state Chamber of Commerce President Jo Frappier, were critical of the committee's work last week and complained amendments added in committee were weakening a bill passed earlier by the Senate.

Frappier also complained that the committee was not representative of the House as a whole and that it was overly influenced by trial lawyers.

Richardson explained that the committee bill is "much more pro-employee, pro-attorney than the Senate version. I don't know if it is fair to say this is just a pro-employee bill, but it is more so than with the Senate version."

An attorney, Richardson took issue with Chamber arguments that the bill was dominated by lawyers. "The irony of it is that two of the best friends he's (Frappier) got on the committee are me and Zane Yates (R-St. Louis County), and we are both lawyers," he said.

"I would take exception to his claim that this committee is dominated by trial lawyers or that amendments that have gone on are because of manipulation by lawyers," said Richardson. "A number of special-interest groups are active out there, and would like to see this bill diluted. That includes organized labor and insurance committees."

Richardson said there are too many changes in the bill that will weaken it, compared to the Senate version. "When you put all these changes in and look at any one of the issues, it is not fatal to a good bill. But, when you take all these issues together and chip away here and there, I'm not convinced the bill that came out of committee is one I can support," said Richardson.

Once the bill hits the House floor, Richardson expects it to be further scrutinized. He said he anticipates as many as three dozen amendments being offered. "It will likely take on an entirely different complexion yet after we debate it," said Richardson.

The second-term legislator also said he anticipates that someone will offer the original Senate bill as a substitute for the House committee's version.

"But if it is offered and accepted, it will still be heavily amended, and, if offered and not passed, the House committee substitute will still be heavily amended."

Richardson said that a House-Senate conference committee will hammer out a final bill. Once the conference committee convenes, after the House acts, he anticipates senators will stick close to their version.

"Their bill passed 32-0 in the Senate, and that is a pretty strong mandate to bring to the conference from the Senate," said Richardson.

Rep. Dennis Ziegenhorn, D-Sikeston, chairman of the House Insurance Committee, said he is pleased the committee bill still has a plan for competitive bidding of workers' compensation insurance rates. He said the use of the National Commission on Compensation Insurance (NCCI), which has set rates in Missouri, needs to be stopped and let the marketplace determine rates.

Under both versions, that would occur on Jan. 1, 1994.

Ziegenhorn said it is important for the House to add good amendments to the bill when it is on the floor to insure those items are considered when the issues are resolved in a conference committee.

Both Ziegenhorn and Richardson stressed the importance of getting a good bill passed this session. They said reducing workers' compensation rates is a great economic development tool for the state.

"This will be one of the most critical economic development bills that we will deal with in this decade," said Richardson. "We are losing businesses to bankruptcy and relocation to other states because of our workers' compensation rates."

He said: "There does need to be some recognition that, in order to solve the problem, everybody is going to have to tighten their buckle a bit. We will likely end up with a bill that will make most people a little mad, which may be the litmus test for whether it is a good bill or not."

Richardson explained that the House committee substitute makes eight or nine significant changes from the Senate version.

One area of concern he and other Republican members of the committee have is a decision that could delay implementation of a state-owned mutual workers' compensation plan to help provide coverage for small businesses that can't get it now.

"Everyone seems to think the mutual will help in the short run by providing refuge for small businesses that are getting hurt bad right now," Richardson said. "The mutual is an alternative for small businesses that large companies don't want to write."

But a committee change Richardson said he opposes would delay implementation of the mutual until 1995, and it would take effect only if the state insurance pool is above 10 percent of the total market.

Another area of concern is an amendment that allows employees to take action in circuit court, without following the entire workers' compensation system process, if an employer contends the injury is not work related.

The GOP members also object to expanding the Second Injury Fund to provide workers' compensation coverage for workers whose employers should have had coverage but did not. Efforts would be made to collect the costs of the medical treatments from the employer.

"This changes the entire complexion of the Second Injury Fund, making it parallel to uninsured motorist coverage," said Richardson. "We have been funding it with a 3 percent surcharge. Now we will have to go up to 4.5 percent."