SESSION OF 2024
SUPPLEMENTAL NOTE ON SENATE BILL NO. 430
As Recommended by Senate Committee on
Commerce
Brief*
SB 430 would amend workers compensation law to,
amongst other things, increase lifetime benefit maximums,
provide coverage for members of the Kansas National Guard,
and modernize elements of the administrative process.
Lifetime Benefit Caps
The bill would increase the following lifetime maximum
benefits:
Benefit Current Law SB 430
Death $300,000 $500,000
Permanent Total $155,000 $400,000
Disability
Temporary Total $130,000 $225,000
Disability
Permanent Partial $130,000 $225,000
Disability
Temporary Partial $130,000 $225,000
Disability
Functional Only $75,000 $100,000
The bill would also establish, beginning on July 1, 2027,
an adjustment formula that would increase the maximum
benefit caps annually by a five-year average of the
percentage change in the state average weekly wage.
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
Additional Benefit Changes
Additional Benefit Payments and Reimbursements
The bill would require an employer to provide
reimbursement for “reasonable expenses” for overnight
accommodations in cases in which the employer requires the
employee to seek a medical opinion outside of their town or
city of residence. The bill would also increase the per diem
requirement from $15 to $30 to help defray the employee’s
meal expenses. [Note: Employers would still be required to
provide funds for transportation.]
The bill would increase the amount of medical charges
an employer is liable to cover from $500 to $800 when an
employee consults a healthcare provider for the purpose of
examination, diagnosis, or treatment without prior application
or approval.
Benefit Calculation
The bill would clarify the reduction in the award of
compensation for both permanent partial and permanent total
disability based upon preexisting functional impairment is only
for the “same physical structure as the body part injured.”
The bill would also amend the benefit reduction
calculations for retirement benefits under the Federal Social
Security Act by only deducting 50.0 percent of the weekly
equivalent amount of benefits from the employee’s
permanent partial or permanent total disability benefits.
However, the bill would exclude temporary total and
temporary partial disability compensation from said
deduction. [Note: State law currently deducts 100.0 percent of
Federal Social Security Act benefits from the employee’s
disability benefits.]
The bill would amend the definition of “wage” by
excluding from the calculation of their average weekly wage
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the employee’s first week of employment if the employee
worked less than their expected weekly schedule that week.
Benefit Payment Methods
The bill would allow, upon agreement of the parties, for
benefit payments to be made by electronic funds transfer or a
payment card. Should payment be made in this manner, the
bill would require that notification of payment by either
electronic funds transfer or payment card be made to the
injured worker’s attorney each time a payment is made.
Minimum Weekly Payments
The bill would increase the minimum weekly benefit
payment amount from $25 to $50.
Death
The bill would require a judicial determination of
dependency prior to any initial payments for the death of an
employee due to injury.
The bill would also replace the term “minor child” with
“wholly dependent child” and require benefit payments to
continue until the latest of the following dates:
● The wholly dependent child, who is not enrolled in
high school, becomes 18 years of age;
● If enrolled in high school, May 30 of the wholly
dependent child’s senior year in high school or until
the child becomes 19 years of age, whichever
comes first; or
● The wholly dependent child’s 23rd birthday, if such
child is a student enrolled full-time in an accredited
institution of higher education or vocational
education.
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Injuries Not on the Schedule
For injuries not on the schedule, the bill would amend
eligibility requirements for an employee to receive permanent
partial general disability compensation to employees who
suffer an injury that, among other things, has a functional
impairment caused solely by the injury that is equal to or
exceeds 7.5 percent to the body as a whole. [Note: State law
requires the amount of impairment to exceed 7.5 percent.]
Permanent Partial Disability
The bill would amend the compensation calculation for
the loss of or loss of use of a scheduled member to be the
percentage of functional impairment the employee sustained
from the injury.
Kansas National Guard
The bill would entitle members of the Kansas National
Guard, who are eligible to receive workers compensation
benefits under the current program, to receive their benefits
under the general workers compensation benefits starting
July 1, 2024. [Note: Any wound, injury, disease, illness, or
death that occurs prior to July 1, 2024, would be governed by
their current benefits.]
The bill states that, for benefit calculation, the service
member’s current military earnings would be used as their
average weekly wage. Additionally, the bill would deduct from
the benefit amount owed to the service member by the State
any federal benefits the service member, or their dependent,
receives for a wound, injury, disease, illness, or death be. All
service members would be required to sign an authorization
consenting to the release of information regarding any federal
compensation received in order for adjustments to State
benefits to be made.
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Medical Examination, Records, and Treatment
Exchange of Medical Records
The bill would require that, except for preliminary
hearings conducted under KSA 44-534a, both parties or their
attorneys shall arrange for the free exchange of all medical
reports, including those made by treating and examining
healthcare providers, upon receiving notice of the hearing
date for a case. All medical records would be exchanged no
less than 30 days prior to the hearing date. The bill would
state failure by any party to comply would be grounds for the
administrative law judge to grant a party’s request for
additional time to present evidence.
The bill would also provide additional requirements
regarding the following topics:
● Documents to be included in the notice;
● Disputes of medical reports submitted as evidence;
● Submission of medical records as evidence in a
hearing; and
● Testimony by treating or examining healthcare
providers.
In the event the parties are utilizing the preliminary
hearing process established in KSA 44-534a, the bill would
require such exchange of medical records to occur no less
than 20 days prior to the date of the preliminary hearing.
Neutral Medical Examination
The bill would authorize the administrative law judge to
appoint a neutral health care provider to conduct a neutral
health care examination should the parties not agree to a
neutral health care examination or a neutral health care
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provider prior to the prehearing settlement conference. The
neutral health care provider would be required to be “of good
standing and ability” and be required to address the
diagnosis, treatment recommendations, and temporary
restrictions of the injured employee. The bill would require the
selected health care provider to issue a written report which
would be admitted into evidence without additional
foundation.
The bill would prohibit the appointed neutral health care
provider from addressing the injured worker’s permanent
restrictions, impairment, permanent partial disability, job task
loss, wage loss, or permanent total disability in any written
report unless the provider would be subsequently designated
to be the authorized treating health care provider.
The bill would also allow any charges or costs incurred
from the neutral health care provider due to unreasonable
late cancellation or a missed appointment to be charged to
the party responsible for the canceled or missed appointment.
Post-award Medical Benefits
The bill would amend the instances when an employer’s
liability for an injured employee’s medical benefits would not
terminate upon the employee reaching maximum medical
improvement. Such employer liability would not terminate the
employee’s medical benefits if the following conditions were
met:
● The employee has undergone invasive or surgical
procedures or an authorized treating health care
provider recommends the employee would need an
invasive or surgical procedure in the future, and
evidence is provided that “it is more probably true
than not” that future medical treatment will be
needed after reaching maximum medical
improvement; or
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● There is “clear and convincing evidence” that the
employee would need future medical treatment.
The bill would prohibit proceedings for post-award
medical benefits from utilizing preliminary hearing procedures
contained in KSA 44-534a.
The bill would require all applications made for a hearing
on post-award medical benefits to specifically identify the
post-award medical benefits being sought. If the benefits are
provided within 30 days, no award of attorney fees would be
made unless “clear and convincing evidence” is provided that
the employee’s attorney expended significant time or
resources to obtain the benefits.
Miscellaneous Provisions
Hearing Extension Limitation
The bill would remove, for claimants who have not
reached maximum medical improvement, a prohibition on
grants of extensions for claims that have not proceeded to a
regular hearing, settlement hearing, or agreed award within
three years of making the claim.
Medical Reference Guides
The bill would amend all references to the fourth edition
of the American Medical Association Guides for Evaluation of
Permanent Impairment to the sixth edition of the publication.
Notification of Injury
The bill would clarify an employee could notify their
employer of an injury by accident or repetitive trauma either
orally or in writing as provided by law.
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The bill would also amend the timeframe in which an
injured employee must notify their employer. An employee
must notify their employer by the earliest of the following
dates:
● Within 30 calendar days from the date of the
accident or date of injury by repetitive trauma; or
● Within 20 calendar days after the employee’s last
day of employment with the employer.
[Note: State law requires notification within 20 calendar
days from the date of injury, 20 calendar days from the date
of medical treatment for the injury, or 10 calendar days after
the employee’s last day of employment with the employer.]
Records of Hearings
The bill would allow the Director of Worker’s
Compensation (Director) at the Kansas Department of Labor
to record hearings by digital recording or other comparable
means. Should this occur, the bill would require the
recordings to be transcribed by either a certified shorthand
reporter or notary public who would then attest to the
accuracy of the transcript.
Settlements
The bill would allow for settlements to occur by
settlement award on written stipulation by a form established
by the Director, but only if both parties are represented by
legal counsel and the claimant is over the age of 18.
Any settlement made in this manner would be required
to be approved or rejected by the assigned administrative law
judge within five business days of the electronic filing of the
settlement award by the parties.
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Workers Compensation Fund
The bill would allow the Workers Compensation Fund
(Fund), when engaged in a lawsuit in which the Fund has
reasonable belief the liability for the injured worker’s benefits
should be covered by a principal, to file an application to bring
the principal as a party into the lawsuit. Any application made
to the Fund to carry out such actions would be required to be
heard within 60 days from the date the principal was notified
of the Fund’s application.
Definitions
The bill would amend the following definitions:
● “Functional Impairment” would utilize the sixth
edition of the American Medical Association Guides
to the Evaluation of Permanent Impairment instead
of the fourth edition of the publication.
● “Money” would include sick, vacation, or other paid
time off;
● “Workman”, “employee”, or “worker” would include
“claimant” as an equivalent term;
● “Permanent total disability” would require the
claimant to meet the following requirements:
○ Suffers impairment as established by
competent medical evidence and based on
the sixth edition of the American Medical
Association Guides to the Evaluation of
Permanent Impairment; and
○ Suffers a percentage of functional impairment
determined to be caused solely by the injury
that is equal to or exceeds 10.0 percent to the
body as a whole or the overall functional
impairment is equal to or exceeds 15.0
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percent if there is a preexisting functional
impairment;
● “Complete medical record” would be the report of a
health care provider and include the provider’s
qualifications, patient’s history, complaints, details
of the findings of examinations, diagnosis,
prognosis, nature of the impairment and disability,
and an estimate of the percentage of permanent
disability, if any; and
● “Registered mail” would be:
○ Registered mail or certified mail that provides
a mailing receipt or is trackable and provides
proof of receipt;
○ Electronic mail with proof that the electronic
mail was delivered; or
○ Facsimile with proof of delivery.
Background
The bill was introduced by the Senate Committee on
Commerce at the request of Senator Erickson.
Senate Committee on Commerce
In the Senate Committee hearing, proponent testimony
was provided by representatives of Cooper Law Office,
Kansas Chamber, Kansas Self-Insurance Association,
Kansas Society for Human Resource Management, and the
National Federation of Independent Businesses. The
conferees generally stated the bill was a negotiated
compromise between business and labor. The conferees
requested the bill not be amended due to its negotiated
nature.
Written-only proponent testimony was provided by
Kansas AFL-CIO, Kansas Chamber, Kansas Department of
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Labor, Kansas Self-Insurance Association, Kansas Society of
Human Resource Management, Kansas Trial Lawyers
Association, and National Federation of Independent
Businesses.
No other testimony was provided.
Fiscal Information
No fiscal note was available at the time of the Senate
Committee action.
Workers compensation, Kansas National Guard, benefits, maximum, commerce,
labor, business; employees
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Statutes affected: As introduced: 44-501, 44-508, 44-510b, 44-510c, 44-510d, 44-510e, 44-510f, 44-511, 44-510h, 44-510k, 44-512, 44-515, 44-516, 44-519, 44-520, 44-523, 44-534a, 44-525, 44-526, 44-531, 44-552, 44-566a
Enrolled: 44-501, 44-508, 44-510b, 44-510c, 44-510d, 44-510e, 44-510f, 44-511, 44-510h, 44-510k, 44-512, 44-515, 44-516, 44-519, 44-520, 44-523, 44-534a, 44-525, 44-526, 44-531, 44-552, 44-566a