HB 788 Summary

• Restricts second injury fund claims for permanent partial disability occurring after August 28, 2011, limiting eligibility to employees with documented preexisting military service disabilities or prior compensable injuries meeting minimum thresholds (50 weeks compensation for body injuries or 15% for major extremity injuries).

• Renames the second injury fund the "Veteran's Supplemental Compensation Fund" beginning January 1, 2015, and limits compromise settlements paid from the fund to $40,000 maximum between August 28, 2011 and January 1, 2015.

• Modifies workers' compensation tax rates charged to employers beginning January 1, 2012, setting annual rates between 0.5% and 2% (previously 2%) of net premiums, with rates adjusted annually based on estimated administrative expenses.

• Adjusts the second injury fund surcharge calculation beginning October 31, 2011, capping the surcharge at 3% of net premiums and limiting advances from the workers' compensation fund to no more than 33.3% of the annual surcharge amount.

• Establishes that surcharge collections are the sole funding source for the second injury fund and prohibits compensation from the second injury fund if an employee pursues workers' compensation benefits in another state.