Jan 08, 2009 - 07:01:42 CST
Lawmakers debated three bills on Wednesday that aim to bar political influence from Workforce Safety and Insurance and would increase the agency's surplus limit.The House Industry, Business and Labor Committee heard testimony on the measures, which have the support of WSI and business leaders, while critics said the legislation is redundant and could have negative, unintended consequences.
One measure would increase the maximum level of WSI's available surplus from 140 percent to 150 percent of the agency's discounted reserves.
While WSI's surplus surpassed the 140 percent limit last summer, the agency's reserves have since fallen amid a slumping market, and as of Oct. 31 now stand at 130 percent, WSI officials said.
The proposed legislation would exclude about $44 million in government grants, dropping WSI's estimated surplus level to 124 percent, or $178 million, of WSI's discounted reserve of $745 million.
"I think today, frankly, with the markets, we could have left it at 140 percent," said Rep. Rick Berg, R-Fargo, who chaired the interim Industry, Business and Labor Committee that recommended the legislation.
Lawmakers also debated whether WSI's properties, worth about $10.7 million, should be counted among its assets. WSI Director of Finance Cindy Ternes said the agency is requesting an amendment to exclude the property, which would drop the surplus level to 123 percent.
"If it's out, it's more like a government agency," said Rep. George Keiser, R-Bismarck, chairman of the House Industry, Business and Labor Committee. "If it's in, it's more like a business."
The committee also heard testimony on a bill that would require WSI to base its rate increases on the recommendation of a third-party analysis.
"Passage of this bill will eliminate political influence in rate setting," Berg said, alluding to the high premiums businesses paid to WSI in the 1990s to counter the agency's deficit that grew while under the purview of the governor's office during the 1980s.
The final bill would direct the biennial, independent audit of WSI to look for political influence in the agency's claims process, as well as the effectiveness of the body's governing structure.
North Dakota AFL-CIO Chairman David Kemnitz called the legislation unneeded.
"We have not seen any problems with the auditors doing an independent audit," he said, adding that the term "political influence" as noted in the bill is not well-defined.
"If this is decided too soon, it might be more than what you wanted," he said.
The bills are HB1035, HB1036 and HB1037.
(Reach reporter Brian Duggan at 223-8482 or brian.duggan@bismarcktribune.com.)
Barney wrote on Jan 8, 2009 8:21 AM:
In the instance of WSI, voters still have a say in how government is run. Good for democracy. "
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