North Dakota legislators have ordered changes in the process of selecting the board that oversees the state workers compensation agency - changes that board critics say are only cosmetic.

The Workforce Safety and Insurance board has been criticized for its response to a state audit that documented poor morale and questionable management practices at the agency.

Its director, Sandy Blunt, and top fraud investigator, Romi Leingang, face felony charges involving questionable spending on gifts and possibly illegal use of driver's license photos. They have been put on paid leave until the charges are resolved.

Board members now control who is chosen for eight of the board's 11 seats. When there is a vacancy, the board forwards the names of three candidates to the governor, who must choose one of the three.

"Essentially, the board of directors appoints itself. No board should operate that way," said Sen. Tracy Potter, D-Bismarck.

Legislation approved Wednesday by the House (93-1) and the Senate (45-2) takes away the board's power to nominate candidates and gives more authority to the governor and a nominating committee he chooses. The committee will include representatives of various North Dakota business groups.

"I think we'll get more well-rounded (candidates)," said Sen. Nick Hacker, R-Grand Forks.

The bill also gives the governor 30 days to reject a nominee, and reduces the number of four-year terms a board member may serve, from three to two.

Sen. Joel Heitkamp, D-Hankinson, who unsuccessfully pushed bills to overhaul WSI's operations during the Legislature, said the measure approved Wednesday did not go far enough.

"This bill sends the message that we're reforming WSI, and it doesn't," Heitkamp said.

Heitkamp wants the governor, rather than the board, to have the authority to hire and fire the agency's director. At the very least, the governor should be able to remove board members from their positions for misconduct, Heitkamp said.

"In light of what's happened at WSI, I think it's going to be very hard going home and looking at people and explaining why we didn't get the job done," Heitkamp said.

Potter supported the measure. "It's not much of a bill. It's an incremental change," he said. "But it's a change that ought to happen."