COBI 2015 - Industrial Accidents

Overview
Issues
Performance
Background
Financials

Sources Uses

FY 2016 Appropriation

The Industrial Accidents Division (IAD) investigates allegations of noncompliance with State Workers' Compensation laws and attempts to bring employers into compliance with these laws.

Methods for ensuring compliance include:

Assessing penalties for non-compliance
Monitoring:
- Injury reporting
- Injured employees returning to work
- Carrier payment compliance
Informally resolving Workers' Compensation compliance disputes

Funding History

Appropriation Overview

During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $1,892,900 from all sources for Industrial Accidents. This is a 2.3 percent increase from Fiscal Year 2015 revised estimated amounts from all sources. The total includes $30,300 from the General/Education Funds, an increase of 11.4 percent from revised Fiscal Year 2015 estimates.

Number of Industrial Accidents Mediations

This graph demonstrates the number of mediations held by the Industrial Accidents Division. One of the objectives of this Division is to resolve disputes between injured workers and insurance carriers. Mediation is an expedient, cost-effective solution which often results in a solution satisfactory to both parties. Mediation eliminates the additional time and expense of a full adjudicative hearing.

Number of Noncompliance Orders Issued

A noncompliance order is a fine issued when a company fails to provide statutorily-required workers' compensation insurance. A statutory formula that takes into consideration class codes and company size is used to determine the penalty amount. Any amounts collected are deposited into the Uninsured Employers' Fund, which is used to pay claims on injured workers whose employer lacked workers' compensation coverage.

The reduction in orders issued results from: 1) time working on the quality of the orders which resulted in a decrease in the quantity, 2) implementation of the Success Framework, and 3) providing backup on workers' compensation waivers until the Legislature authorized a new FTE for this work.

Amount Collected in Fines

Total amount of money assessed and collected on companies that did not provide statutorily-required workers' compensation insurance for employees.

Statute

The IAD derives its statutory authority from the following sections of the Utah Code Annotated.

UCA Title 34A1 - Labor Compensation Act

UCA Title 34A2 - Workers Compensation Act

UCA Title 34A3 - Occupational Disease Act

The IAD budget breaks down into the following units:

Administration. General administration, including the Division Director, Deputy Director, Lead Secretary and other Division-wide costs
Electronic Data Interchange Project (EDI). Supported by one-time funds appropriated in the spring 2014, includes the Second Report of Injury computer system development
Workers' Compensation Coverage Waivers. Accounts for the costs of providing "waivers," which act as a verification of independent contractor status and a declaration of non-coverage for independent contractors who hire out their services to employers
Claims. Assists injured workers in resolving disputes regarding workers compensation claims; helps employers and employees understand the workers' compensation system and handles state requirements for filing on-the-job injury information
Mediation. Provides free mediation services for disputes between injured workers, their employers and workers compensation insurance providers
Compliance. Enforces the requirement that employers have workers' compensation coverage for employees by providing information about coverage requirements; invesigates and assesses fines for employers who do not maintain proper coverage
Investigations Operations. Covers the cost of a half-time physician to assist in claim resolution

Intent Language

HB0003: Item 66

Under section 63J-1-603 of the Utah code, the Legislature intends that appropriations provided to the Labor Commission in Item 21, Chapter 10, Laws of Utah 2014 not lapse at the close of Fiscal Year 2015. Nonlapsing funds shall be used for computer projects.

Display By:

Funding Source

Expenditure Category

Appropriation Type:

Appropriation History by

Sources of Finance	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
General Fund	316,300	32,100	27,600	29,300	14,200	13,000	27,200	2,700	29,900
General Fund, One-time	0	0	0	300,000	0	0	0	400	400
Dedicated Credits Revenue	0	0	0	0	0	35,000	35,000	700	35,700
GFR - Industrial Accident Restricted Acc	1,123,800	1,441,200	1,461,400	1,631,000	1,579,200	(200)	1,579,000	86,900	1,665,900
Employers' Reinsurance Fund	58,000	58,600	58,600	58,600	58,600	0	58,600	2,400	61,000
Beginning Nonlapsing	0	0	0	0	0	400,000	400,000	(150,000)	250,000
Closing Nonlapsing	0	0	0	(400,000)	0	(250,000)	(250,000)	100,000	(150,000)
Lapsing Balance	(149,200)	0	0	0	0	0	0	0	0
Total	$1,348,900	$1,531,900	$1,547,600	$1,618,900	$1,652,000	$197,800	$1,849,800	$43,100	$1,892,900

Categories of Expenditure	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Personnel Services	1,108,000	1,202,600	1,266,500	1,344,800	1,394,600	19,400	1,414,000	74,900	1,488,900
In-state Travel	1,900	1,800	1,300	700	1,500	(500)	1,000	0	1,000
Out-of-state Travel	1,000	3,300	9,600	6,700	10,000	12,000	22,000	0	22,000
Current Expense	68,100	142,300	60,700	50,700	74,100	(17,200)	56,900	12,800	69,700
DP Current Expense	169,900	175,600	209,500	216,000	171,800	184,100	355,900	(44,600)	311,300
Capital Outlay	0	6,300	0	0	0	0	0	0	0
Total	$1,348,900	$1,531,900	$1,547,600	$1,618,900	$1,652,000	$197,800	$1,849,800	$43,100	$1,892,900

Show Table | Show Additional Information

Other Indicators	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Budgeted FTE	19	13.50	16.50	17.50	18.70	0	18.70	0	18.70
Actual FTE	15.50	16.80	17.90	18.40	0	0	0	0	0

COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.