Bill Summary – FastDemocracy

HB 85
                      Department of Legislative Services
                              Maryland General Assembly
                                    2021 Session
                           FISCAL AND POLICY NOTE
                                 Third Reader
House Bill 85                   (Delegate Bhandari)
Economic Matters                                                                    Finance
    Baltimore County - Workers' Compensation - Permanent Partial Disability -
                       Detention and Correctional Officers
This bill alters the definition of “public safety employee” as it applies to workers’
compensation benefits to include Baltimore County correctional officers and detention
officers. Altering the definition in this way makes these correctional officers and detention
officers eligible for enhanced workers’ compensation benefits for claims arising on or after
October 1, 2021.
                                    Fiscal Summary
State Effect: The bill does not directly affect State operations or finances.
Chesapeake Employer’s Insurance Company (Chesapeake) Effect: The bill does not
affect Chesapeake operations or finances.
Local Effect: Baltimore County expenditures increase, as discussed below, beginning in
FY 2022. Revenues are not affected. This bill imposes a mandate on a unit of local
government.
Small Business Effect: None.
                                         Analysis
Current Law: Normally, an employee who is awarded compensation for a permanent
partial disability for a period less than 75 weeks is eligible to receive weekly benefits of
one-third of his or her average weekly wage, but that amount may not exceed 16.7% of the
State average weekly wage. However, a public safety employee is eligible for enhanced
workers’ compensation benefits if awarded compensation for less than 75 weeks. In such
a case, the employer or its insurer must pay the public safety employee at a compensation
rate set for an award period of greater than 75 weeks but less than 250 weeks. Thus, a
public safety employee is eligible to receive approximately double the weekly benefits –
two-thirds of his or her average weekly wage, but that amount may not exceed one-third of
the State average weekly wage. The State average weekly wage for 2021 is $1,050.
Deputy sheriffs from the following jurisdictions are considered public safety employees
for this purpose: Baltimore City and Allegany, Anne Arundel, Baltimore (under specified
circumstances only), Harford, Howard, Montgomery, and Prince George’s counties.
State correctional officers and correctional officers or detention officers from the following
jurisdictions are considered public safety employees for this purpose: Anne Arundel,
Harford, Montgomery, and Prince George’s counties.
Local Expenditures: Baltimore County advises that it currently employs 267 correctional
and detention officers. Baltimore County is self-insured for workers’ compensation, meaning
that all compensation claims are paid directly by the county instead of through an insurer.
Baltimore County correctional officers and detention officers are entitled to enhanced
workers’ compensation benefits under the bill’s provisions, due to their designation as
public safety employees; this benefit is for any claim. While the number of claims made
subject to enhancement in any given year cannot be reliably estimated, any expenditure
increase due to this designation may be significant, beginning in fiscal 2022.
Permanent partial disability awards for less than 75 weeks (awards that receive the
enhanced benefits) are among the most common types of compensation awards. A public
safety employee who receives such an award in calendar 2021 would be entitled to a
maximum weekly benefit of $350 (for a maximum of 74 weeks, for a total of $25,900);
whereas any other employee would be entitled to a maximum weekly benefit of $175 (for
a maximum of 74 weeks, for a total of $12,950) under the same circumstances. Thus, for
each correctional officer or detention officer who sustains this type of injury,
Baltimore County may pay up to $12,950 more in wage replacement benefits under this
provision of the bill; this amount increases each calendar year based on growth in the State
average weekly wage.
For illustrative purposes only, if Baltimore County were to receive 13 such claims per year
(reflecting 5% of the affected staff), Baltimore County expenditures could increase by up
to $168,350 annually. This illustrative amount does not account for change in the State
average weekly wage in future years.
HB 85/ Page 2
                             Additional Information
Prior Introductions: As introduced, HB 685 of 2020 included these provisions; it was
enacted as Chapter 303 without them.
Designated Cross File: SB 651 (Senator Klausmeier) - Finance.
Information Source(s): Baltimore County; Chesapeake Employers’ Insurance Company;
Subsequent Injury Fund; Uninsured Employers’ Fund; Department of Legislative Services
Fiscal Note History:    First Reader - January 29, 2021
rh/ljm                  Third Reader - March 9, 2021
Analysis by: Richard L. Duncan                      Direct Inquiries to:
                                                    (410) 946-5510
                                                    (301) 970-5510
HB 85/ Page 3
Statutes affected: 
Text - First - Baltimore County - Workers' Compensation - Permanent Partial Disability - Detention and Correctional Officers: 9-628 Labor and Employment, 9-629 Labor and Employment
Text - Third - Baltimore County - Workers' Compensation - Permanent Partial Disability - Detention and Correctional Officers: 9-628 Labor and Employment, 9-629 Labor and Employment