December 12, 1996
Contact: Melissa Forsythe
502-564-2611

Frankfort, Ky. - Surrounded by supporters and lawmakers in the Capitol rotunda, Governor Paul Patton, in a ceremonial signing, put his signature on a historic piece of legislation that dramatically reforms Kentucky's workers' compensation system. The final measure was approved by the Kentucky Senate today 32 to 6, and was then concurred with by the House.

The governor complimented the non-partisan effort of legislators who helped him create these reforms. He also complimented various business leaders who worked tirelessly to help improve the bill.

"Today marks a day of victory for the workers of Kentucky." The governor said, "Under this new law, truly injured workers will receive more and speedier benefits and just as importantly, their jobs will be more secure now that the burden of workers' comp costs has been eased for their employers." Under the old system, injured workers often wait nine to 18 months for benefits. The new system is designed to reduce the waiting period to 90 days. Death benefits will be increased , from $4000 to $25,000.

The governor's bill made it through the legislative process with just a few minor amendments. One improvement to the governor's bill would allow the Commissioner of Workers' Compensation to levy fines on insurance companies who are late in paying awards.

The actual document will be ready for the governor's signature later tonight. The bill signing ceremony today ended a nine day special session of the General Assembly called by the governor to consider his reform measure. The House passed the bill last Friday by a vote of 80-17.

Under the new law, the workers' compensation system will become less adversarial and more of an administrative system. "The centerpiece of my reform," the governor said, "is a worker's comp award based on objective medical evidence determined by the professional staff of one of the state's two medical schools. The occupational disability will be determined by objective criteria that will leave little doubt about what is due the injured worker."

Governor Patton said the new law will cut workers' comp costs to non-coal industries by 11 percent and will reduce the costs to the coal industry by an estimated 22 %. Workers will save about $30 million in unnecessary medical and legal bills, but will still be able to go to their own doctors and hire lawyers, if they choose to do so. But the governor emphasized that injured workers will be able to receive the benefits they're entitled to without paying for unnecessary medical and legal bills.

The new law cuts the Black Lung program dramatically, by 67 % and will end all subsidies for coal. Miners in the early stages of the disease, who want to escape the mines, will be able to take advantage of increased retraining benefits.

The measure will stop the accumulation of billions of dollars of unfunded liability and will absolutely payoff the Special Fund by the year 2018.

"This new law will help the truly injured worker, doubling payments to the more seriously injured." the governor said, "That's been my commitment from day one and this reform achieves that goal."

The new workers' compensation law will take effect immediately upon the governor's signature and will affect claims filed after that. Governor Patton emphasized that "no existing award to any injured worker will be reduced under this new law."

"This bill that I'm signing into law today," the governor said, "returns our workers' compensation system to its original purpose, to fairly compensate workers injured on the job."

Governor Patton praised legislative leadership from both parties who worked with him every step of the way on the bill, calling it a unique experience. "We worked together, we reasoned, debated , in an honest search for what's right. Everybody gained, everybody compromised, everybody looked out for what's best for the future of Kentucky. As long as I serve this commonwealth, we will never have a finer hour of statesmanship than what we've seen expressed this week by all this General Assembly."

Governor Patton said that when you know you've had something to do with making Kentucky better, you can be proud.