Panel hears bill to let labor division set workerscomp surcharge in 0.1-point increments

Representative John Voss presented HB 28 55 to change the minimum incremental step used when setting the workers' compensation administration tax and second-injury fund surcharge from 0.5 percentage points to 0.1 percentage points. Voss said the change "rightsizes" the surcharge and reduces the need for the Division of Workers' Compensation to "overshoot" estimated expenses when setting rates.

Mitch Turbrock, legislative liaison for the Missouri Department of Labor, said allowing 0.1 increments would let the department fine-tune rates and gave approximate revenue impacts per increment: a 0.1 percentage-point change represents roughly $12 million compared with $10 million per 0.5-point step. Jared Hankinson of the Missouri Chamber of Commerce testified in support, calling it "good governance" that minimizes undue burden on businesses while preserving fund integrity.

Committee members asked for additional detail about historical rate durations and fund rollover practices; witnesses said the department would provide those operational answers after the hearing. The hearing concluded with no formal vote recorded.

What happens next: The sponsor closed the hearing and the committee concluded public testimony on HB 28 55; department follow-up was requested for details on historical rate settings and fund balances.