
                         THE VIRGINIAN-PILOT
                 Copyright (c) 1994, Landmark Communications, Inc.

DATE: WEDNESDAY, June 15, 1994                    TAG: 9406150487 
SECTION: LOCAL                     PAGE: B3    EDITION: NORTH CAROLINA  
SOURCE: BY HUNTER T. GEORGE II, ASSOCIATED PRESS 
DATELINE: 940615                                 LENGTH: RALEIGH

N.C. SENATE BACKS BILL TO AID INJURED WORKERS

{LEAD} The state Senate on Tuesday offered to help injured workers whose employers don't have insurance, despite concerns that the bill it approved asks ``legitimate'' businesses to pay for it.

The Senate tentatively approved a bill to set up an injured workers fund by establishing a 0.15 percent tax on businesses based on their workers' compensation premiums.

{REST} Sen. Aaron Plyler said his bill would help people who are injured through no fault of their own and cannot get compensation for medical costs and lost income because their employer broke the law by not carrying insurance. He said he knew of about 20 such cases.

``This is something that will help a few people out and won't hurt the masses,'' said Plyler, D-Union.

Under Plyler's bill, the tax on businesses would cut off when the fund reaches $1.5 million. If it dips below $500,000, the tax would automatically be reinstated at 0.10 percent.

For a company that pays $10,000 in insurance premiums, the initial tax would amount to $15.

The tax increase troubles some lawmakers, mostly Republicans.

Sen. Betsy Cochrane, R-Davie, said the bill penalizes ``legitimate businesses'' that have insurance.

Sen. Don Kincaid said he sympathizes with workers who work for companies that don't carry insurance, but he said businesses will ultimately pass the tax increase on to consumers.

``They're going to include it in the cost of doing business,'' said Kincaid, R-Caldwell.

Instead, he said the state should focus on enforcing the state law that requires businesses employing three or more people to carry workers' compensation insurance.

The Senate voted 42-7 to approve the bill on its second reading. It needs to be voted on one more time before it can be sent to the House.

Sen. George Daniel, who sponsored a major workers' compensation reform bill that passed the Senate last summer, wants to delay the final vote on Plyler's bill until he finds out if the House is going to act on his measure.

A subcommittee of the House Courts and Justice Committee has been working on a compromise between business, insurance and labor groups.

by CNB