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Budget Recommendations
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Outside Section 260
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Workers' Compensation Chargeback
SECTION 260.
Notwithstanding the provisions of any general or special law to the contrary, for purposes the purposes of administering the workers' compensation chargeback authorized in item 1750-0105 of section 2 of this act, the secretary of administration and finance shall charge state agencies in fiscal year 2004 as provided in this section for workers' compensation costs, including related administrative expenses, incurred on behalf of the employees of said agencies. Administrative expenses shall be allocated based on each agency's per cent of total workers' compensation benefits paid in fiscal year 2003. The personnel administrator shall administer said charges on behalf of said secretary, and may establish such rules and procedures as he deems necessary to implement the provisions of this section. The personnel administrator shall notify agencies regarding the chargeback methodology to be used in fiscal year 2004, notify agencies of the amount of their estimated workers' compensation charges for said fiscal year, and require agencies to encumber funds in an amount sufficient to meet said estimated charges. Said estimated charges for each agency shall not be less than the amount of the actual workers' compensation costs, including related administrative expenses, incurred by each such agency in fiscal year 2003, and may include such additional amounts as are deemed necessary under said regulations. For any agency that fails within 60 days of the enactment of this act to encumber funds sufficient to meet said estimated charges, the comptroller shall so encumber funds on behalf of such agency. The personnel administrator shall determine the amount of the actual workers' compensation costs incurred by each agency in the preceding month, including related administrative expenses, notify each agency of said amounts, charge said amounts to each agency's accounts as estimates of the costs to be incurred in the current month, and transfer said amounts to said item 1750-0105. Any unspent balance in said item 1750-0105 as of June 30, 2003 in an amount not to exceed 5 per cent of the amount authorized is hereby re-authorized for expenditure in fiscal year 2004. The personnel administrator is hereby authorized to expend from said item 1750-0105 in fiscal year 2004, hospital, physician, benefit, and other costs related to workers' compensation for employees of state agencies, including administrative expenses. Such expenditures may include payments for medical services provided to claimants in prior fiscal years, as well as compensation benefits and associated costs attributable to prior fiscal years.
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