Proposed by initiative petition to be voted on at the General Election, November 2, 2004.
ABOLISHES SAIF; STATE MUST REINSURE, SATISFY SAIF'S OBLIGATIONS; DEDICATES PROCEEDS, POTENTIAL SURPLUS TO PUBLIC PURPOSES
RESULT OF "YES" VOTE: "Yes" vote abolishes SAIF; state must reinsure, satisfy SAIF's current obligations (including pending policyholder claims against SAIF); dedicates proceeds, potential surplus to specified public purposes.
RESULT OF "NO" VOTE: "No" vote retains law authorizing SAIF, a public corporation, to sell and administer workers compensation insurance and to administer an accident fund for that purpose.
SUMMARY: State Accident Insurance Fund (SAIF) is a public corporation selling, administering workers compensation insurance, and administering accident fund for that purpose. Measure abolishes SAIF. Requires state to assume SAIF's authority over accident fund; reinsure fund; satisfy SAIF's obligations under its existing policies; use fifty percent of any excess surplus (meaning any funds exceeding reserves and surplus necessary to satisfy future liabilities) to satisfy policyholder claims in litigation before October 2003; transfer forty percent of any excess surplus to new fund; sell SAIF's assets; transfer proceeds to same fund; and reinsure, otherwise resolve SAIF's remaining liabilities. Dedicates new fund to supporting schools, local law enforcement; providing medications to seniors, medically needy; promoting job growth. Requires certain reports to legislature regarding rates for insurance premiums. Other provisions.
ESTIMATE OF FINANCIAL IMPACT:
The measure would reduce state revenue by approximately $405 million per year and would reduce state expenditures by approximately $301 million per year due to the elimination of SAIF.
The measure would require additional state government expenditures of $1.8 million to $5.5 million per year on a recurring basis with an additional one-time expenditure of $2.2 billion to $2.4 billion.
There will be a one time increase of state revenues of $32.6 million from sale of real property.
The measure would require local government expenditures of $2.6 million to $10.5 million per year on a recurring basis.
There is no financial effect on local government revenues.