This bill proposes to extend supplemental benefits for workers' compensation to individuals who became totally and permanently disabled or whose dependents are affected by workplace injuries or deaths occurring after December 31, 1979. Starting July 1, 2026, eligible individuals will receive weekly supplemental benefits from the Second Injury Fund if their initially-awarded weekly benefits are less than the total amount that would be payable if supplemental benefits were included. The bill outlines a gradual implementation of these benefits, with 33 1/3% of the base amount paid in fiscal year 2027, 66 2/3% in fiscal year 2028, and 100% in fiscal year 2029 and beyond. Additionally, the funding for these supplemental benefits will be sourced from the General Fund, and the bill specifies that certain reductions will apply to ensure compliance with federal Social Security disability benefit regulations.

The legislation also establishes a notification requirement for insurance carriers and self-insured employers, mandating that they inform the Division of Workers Compensation within 60 days if supplemental benefits are needed. If they fail to do so, the responsibility for payment will shift from the Second Injury Fund to the employer until the notification is provided. Importantly, the bill maintains existing provisions regarding the reduction of workers' compensation benefits by Social Security disability benefits, ensuring that the new supplemental benefits do not alter these established offsets. Overall, the bill aims to provide a cost-of-living adjustment for workers' compensation benefits while ensuring fiscal responsibility and compliance with federal regulations.