The Second Injury Fund reimburses insurance companies that have to pay out worker's compensation claims for an employee who had a previous work-related injury. The fund collects money each year from insurance companies to help pay for its operations and companies are spared increased premiums when they rehire injured workers.

If the fund is done away with, $40 million would go to the state's general fund to help balance next year's budget.

While several lawmakers and insurance companies favor the change, some on the committee said it would leave a lot of workers high and dry.

"I cannot understand who is going to take care of these people," Rep. Bill Clyburn, D-Aiken, said of injured workers.

"It needs more debate," said Rep. Rex Rice, R-Easley, after the committee approved the change with a 15-6 vote. "I want to look at the history of the program ... the big picture," Rice said.

Committee Chairman Bobby Harrell, R-Charleston, said the program is no longer needed because the Americans with Disabilities Act protects injured workers who re-enter the work force. "There's not a need for this in my view," Harrell said.

The fund would continue to pay old claims, but won't accept new claims after July 1, Harrell said.

Gov. Mark Sanford backs eliminating the fund.

"The trend nationwide has been for states to eliminate the second injury fund because you've got worker's comp and you've got the Americans with Disabilities Act that has taken its place," Sanford spokesman Will Folks said. "The governor supports that trend extending to South Carolina." But closing funds in 16 other states came for a variety of reasons, including mismanagement and financial problems, said Marty Simons, an actuary who has investigated the system for the Second Injury Fund. Those problems aren't at work in South Carolina, he said.

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