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.�. <br /> LMC MINNESOTA <br /> CITIES <br /> COVID-19 Workers' Comp Law Provides No Financial <br /> Assistance for Local Governments <br /> Apri113,2020 <br /> The League supports financially protecting public safety and health care workers,but says the state needs to fund the <br /> measure,wluch could cost as much as$500 million. <br /> Under a bill passed by the House and Senate last week,public safety and health care workers who contract COVID-19 will be <br /> covered by workers'compensation. <br /> The new law(Chapter 72(https://www.revisor.mn.eov4aws/zozo/o/Session+Law/chapter/72�),which was signed by Gov.Tim Watz on <br /> April 7,requires that if these workers get COVID-19,it should be presumed that they were exposed at work. <br /> Law could devastate workers' comp system <br /> The League opposed the legislation,insisting that the impact of the presumprion could be substantial given the <br /> unprecedented nature of the pandemic.While protecting public safety workers is paramount,a great deal of unknowns <br /> remain about how the pandemic will unfold.Using the state's own projections,the League estimates that workers' <br /> compensation costs for public safety employees could range from$100 million to more than$500 million. <br /> Without financial backing from the state,the new law could have significant negative implications for the long-term financial <br /> and administrative stability of the workers'compensation system.For public employers,the cost to compensate workers who <br /> contract COVID-19 will be passed on to property taxpayers at a time of pronounced economic instability. <br /> —Read the League's statement on the bill(httns://www.lmc.ore/about/for-the-mediaAea�ue-statement-covid-l9-workers-comp-bill/1 <br /> Unfortunately,legislative leaders were unable to to reach agreement on a financial plan that would have provided state or <br /> other assistance to moderate the financial impact on local units of government. <br /> League continues to advocate for city assistance <br /> Since the law's passage,the League has contacted key legislators in an effort to structure a financial response package.Chief <br /> House author of the bill,Rep.Dan Wolgamott(DFL-St.Cloud)and Assistant Senate Majority Leader Eric Pratt(R-Prior Lake) <br /> are working with the League to develop legislation. <br /> The League has also been collaborating with other local government associations and nongovernmental stakeholders on <br /> identifying funds and mechanisms to cushion the impact on local economies.This includes using a portion of the federal aid <br /> Minnesota will be receiving to reimburse organizations that are faced with a high amount of COVID-19-related workers' <br /> compensation costs. <br /> The League will continue to work with key legislators on a proposal to provide state assistance to address the financial <br /> implications of this new law.Please contact your legislators to make sure they are aware of city concerns and urge them to <br /> support forthcoming funding legislation. <br /> For more background information about this bill,read a nrevious article(https://www.lmc.org/news-publications/news/all/public- <br /> safe -health-emplovees-covid-fund/l. <br />