Bill Positions

Bill Number: SB 863

Bill Title: Workers' Compensation - Death Benefits for Partially Dependent Individuals - Payment

Bill Sponsor(s): Senator Edwards

Subject: Workers' Compensation

Committee: FIN

Bill Summary: This bill increases the maximum workers’ compensation payment to partially dependent or partially self-supporting individuals to $75,000. The bill also requires the Workers’ Compensation Commission (WCC) to conduct a study on statutory provisions related to death benefit payments to individuals dependent on a covered employee. The study must determine legislative changes that would provide fair and equitable benefits to wholly dependent individuals and partially dependent individuals and provide for coordination among all of the death benefit provisions. WCC must report its findings and recommendations to the Senate Finance Committee and the House Economic Matters Committee by December 1, 2009. The bill applies to any claims filed for death benefits on or after September 1, 2007.

History: This bill was enacted as Chapter 616.

Chamber Position: Oppose

Position Summary: The Maryland Chamber opposed this bill because it would require the employer or the employer's insurer to make partial death benefits payments to the surviving spouse indefinitely. Businesses, or their insurers will experience a meaningful increase in workers’ compensation payments if this legislation passes. Small businesses will likely experience an increase in insurance premiums as a result of the bill.

Currently in law, there is a difference between a wholly dependent individual and a partially dependent individual. This bill would essentially create a COLA on wholly and partially dependent individuals, and make an assumption that the deceased individual's wages would increase in a parallel manner with the average weekly wage. This is based on an economic presumption - not fact.

For these reasons, the Maryland Chamber opposes this bill.

Position Statement:Coming soon

Chamber Staff: Allyson Black

General Assembly: Click here to view the bill on the Maryland General Assembly's website.