Colorado State Archives
Executive Orders from the Administration of Governor Bill Owens 1999-2005
May 27, 2005
The Honorable Colorado House of Representatives
Sixty-Fifth General Assembly
First Regular Session
Denver, CO 80203
Ladies and Gentlemen:
I am filing with the Secretary of State House Bill 05-1113, "Concerning Permanent Partial Disability Payments." I will neither sign nor veto H.B. 1113. Therefore, this bill becomes law at 12:01 A.M. on June 9. This letter sets forth my reasons for letting this bill become law without my signature.
H.B. 1113 raises the caps for combined temporary disability payments and permanent partial disability payments by 25%. The payment cap for a claimant whose impairment rating is 25% or less would be raised from $60,000 to $75,000. Similarly, the payment cap for a claimant whose impairment rating is greater than 25% would be raised from $120,000 to $150,000. The National Council on Compensation Insurance (NCCI) estimates that raising these caps will increase costs to the workers compensation system by $6 million to $13 million.
Generally, I am opposed to any action that will increase workers compensation costs. However, H.B. 1113 reflects a compromise between the proponents of the bill and the private sector stakeholders affected by it. The fact that the caps for combined temporary disability payments and permanent partial disability payments have not been raised in fifteen years was the driving force behind this agreement.
While it may be prudent, at this time, to increase the caps after fifteen years, I am concerned about the cost increase expected to result from H.B. 1113.
Accordingly I am allowing this bill to become law without my signature.
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