A new bill draft would ensure Workforce Safety and Insurance premium rate increases are based on independent analysis rather than politics, state lawmakers said Wednesday.
The bill draft is one of four measures approved by the Industry, Business and Labor committee that seek to give WSI more parameters in the way it handles premiums, employee concerns and its auditing process.
Rep. Rick Berg, R-Fargo, chairman of the committee, said the bills will address the governance of WSI, regardless of what happens with Measure 4 on Election Day that would give the governor the ability to hire or fire the director of the department.
"We want to make sure there is no inappropriate political influence in the future," Berg said.
WSI would have to base its premium rate increases within 5 percent of the increase recommended by a third party's analysis.
Throughout the late 1980s and early 1990s before the Legislature voted in 1995 to take WSI out of the purview of the governor, the department was running a deficit because it would not increase its rates to keep up with skyrocketing injured workers claims.
Berg said the bill would potentially prevent that from happening again.
Another bill draft approved by the committee would guide auditors looking into WSI. The bill recommends auditors see that claims are handled fairly and efficiently and if the severity and number of claims is reduced.
Sen. Terry Wanzek, R-Jamestown, asked why the committee should introduce legislation that expands the scrutiny of WSI.
"Has there ever been another entity or state interest that has ever been examined or scrutinized so thoroughly?" Wanzek asked. "Even without this language a better question might be what part of WSI didn't we audit?"
Berg said the added language would help legislators better determine problems within the department.
The same bill also would recommend that the Legislature develop a reporting method for employees who feel they've been subject to inappropriate political influence when determining something like a WSI claim.
The committee also approved a bill draft that would expand the financial reserve WSI is allowed to have from a 140 percent maximum to 150 percent in light of recent market volatility.
WSI Interim Director Bruce Furness said WSI is running at 146 percent right now and would support the bill.
The committee also approved a resolution to establish a study on the governance structure of WSI.
Berg also said exaggeration and politics got in the way of investigating claims from the 57 injured workers who said they had been mistreated by WSI. Only 17 of those 57 people signed releases to allow legislators to examine their claims.
"I'm not aware of one case where they were totally inconsistent with state law or they were ignored," Berg said.
(Reach reporter Brian Duggan at 223-8482 or brian.duggan@bismarcktribune.com.)
Posted in Local on Wednesday, October 22, 2008 7:00 pm Updated: 2:27 pm. | Tags: Political, State, North Dakota
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