SCS SB 420 Summary

• Eliminates the second injury fund's role in compensating workers with combined disabilities from injuries occurring on or after July 1, 2011; employers and insurers become solely liable for combined disability compensation instead.

• Removes the $40 per week rehabilitation benefit that the second injury fund previously provided to injured workers undergoing physical rehabilitation.

• Changes actuarial study requirements from every three years to annually until all fund liabilities are resolved, with the first study due before July 1, 2012.

• Establishes a priority payment system for remaining fund liabilities: legal defense expenses, permanent total disability awards, permanent partial disability awards, and medical expenses incurred prior to July 1, 2011.

• Authorizes the division director to transfer funds from the workers' compensation fund to the second injury fund and collect supplemental surcharges to maintain solvency through 2012.