There are hundreds of bills that will not see further action this legislative session because they failed to pass out of a committee in either the House or the Senate by the end of last week, commonly known as “funnel week”. Bills that were fortunate enough to clear the first hurdle in the process will still need to pass out of one chamber, as well as a committee in the opposing chamber, during the next four weeks in order to remain viable.
Although many bills that survived “the funnel” could cause dramatic changes in Iowa if passed, I would like to focus this article on three worker’s compensation bills that are likely to significantly affect the business climate in Iowa.
House File 676 proposes a bill that would allow a settled worker’s compensation award to be reopened if the worker has experienced changes that were unknown at the time of the settlement. In essence, workers’ compensation cases could never truly be closed because the new bill’s definition of “unknown” is so broad.
House Study Bill 99 would reverse apportionment legislation passed two years ago. Currently, an employee can only receive worker’s compensation on a purely new injury. However, under the proposed bill, an employee would be permitted to collect a new award on an old injury for which he or she has already been compensated.
Probably the most problematic of all is Senate File 424. Current law allows employers to choose the physician their employees see for workplace injuries. This is based upon the premise that since the employer has to pay the doctor, they should be able to select the doctor. The proposed legislation would allow the employee to choose the doctor; however, the employer would still be required to pay. In addition, the bill would provide an employee up to 90 days to inform his or her employer of a workplace injury as opposed to the 10 days that are provided under current law.
The National Council of Compensation Insurance (NCCI) is a nationally recognized organization that assesses how legislation on worker’s compensation will affect the cost of worker’s compensation insurance for employers. In NCCI’s estimation, Senate File 424 alone will increase the cost of worker’s compensation insurance in Iowa by almost 14 percent.
Iowa’s business climate is currently ranked a dismal 41st in the nation. Legislation that has either already passed (raising the minimum wage) or is in the process of passing (changing Iowa’s Right to Work status, worker’s compensation regulation changes, and making it easier to sue for product liability) only makes it more expensive and less attractive to do business in Iowa. Other bills propose to double hotel and restaurant fees and construction contractor fees to the state’s labor commissioner. The cumulative effect of these changes is likely to cause businesses both large and small to move to other states with more favorable business climates.
I have always been a proponent of state economic development efforts, but it seems absurd to me to spend tax dollars on state economic development programs at the same time we are passing legislation that creates a business climate that is even less favorable.
I will oppose all of these measures if they come before the House for deliberation. I appreciate all of you who have called to share with me the effect these various pieces of legislation will have on your workplace.
As always, you can contact me in the following ways:
E-mail: carmine.boal@legis.state.ia.us
Home Address: 3301 SW Timber Green Road, Ankeny
Home Phone: 964-3335