Members Present:                  Members Absent:

Jack Barrett     Dave Whaley      Susan Dokken
Dan Obray        Dave Gribskov
John Greenfield  Jim Nelson
Steve Millard    Keith Hutchinson
Rian VanLeuven   Tracy Whigam
Alan Gardner     Bob Shosted

The Minutes of the March 6, 2001, meeting were approved as written.

Chairman Jack Barrett reported that informational materials will be sent out to the members of the subcommittee reviewing an uninsured employer fund. Mr. Barrett anticipates that a proposal will be completed by 2002.

Gary Stivers reported that all parties have executed the agreement between the State of Montana and the State of Idaho regarding extraterritorial jurisdiction in workers' compensation matters. The Commission anticipates negotiating such agreements with other neighboring states, as well.

Alan Gardner reported on the findings and recommendations of the subcommittee reviewing issues of improper claims handling. It was the consensus of the subcommittee that the Commission's existing rules and statutes are being violated by a number of workers' compensation insurers. The solution and recommendation of the subcommittee is that the Industrial Commission strictly enforce the existing statutes and rules. The Idaho Legislature established a policy requiring in-state adjustment of workers' compensation claims through statute and rule. The Commission may wish to try informal procedures first, but the rules are clear and ultimately must be enforced. After discussion by the group, Chairman Barrett asked whether the Committee had reached consensus.

Recommendation of Advisory Committee

It was the consensus of the Advisory Committee that the recommendations of the subcommittee pertaining to Industrial Commission enforcement of the claim adjusting requirements of the Workers' Compensation Law and administrative rules be adopted as the Advisory Committee’s recommendations to the Commission. A copy of the recommendations is attached to these minutes and made a part hereof by reference.

Mr. Gardner also indicated the subcommittee suggested that the Commission look at the problems associated with the Medata database. However, this is a side issue that arose during subcommittee discussions and is not included in the subcommittee's official recommendations.

Kim Stanger, an attorney from Hawley, Troxell, Ennis, & Hawley, presented an overview of the Health Insurance Portability and Accountability Act of 1996. Although workers' compensation is exempt from the requirements of the Act, there will be indirect effects. This act covers healthcare providers, health plans and clearinghouses. Title II of the Act mandates the format, content, privacy, and security of electronic transactions that are passed between covered entities.

Industrial Commission Financial Officer Don Robbins gave an overview of the Commission's budget projections. Discussion was held regarding moving the Boise office. Chairman Barrett inquired as to whether it would be of assistance to have a subcommittee work with the Commission on its financial problems. The Commission agreed that such a subcommittee would be helpful. Mr. Barrett asked for a subcommittee. Bob Shosted, Dave Whaley, Tracy Whigam, and John Greenfield agreed to serve. Mr. Barrett indicated that special members could be appointed as needed and the subcommittee could select its own Chair. He asked that the subcommittee make a report at the next Advisory Committee meeting.

John Greenfield introduced Kristin Ocker, a Deputy Attorney General from the Department of Health & Welfare. After a short discussion, Chairman Barrett suggested that something regarding this issue be submitted to the Committee members in writing by the next meeting so the Committee can decide whether any action needs to be initiated. Mr. Greenfield indicated he would meet with Kristin Ocker and with Ron Coston, Deputy Attorney General for State Insurance Fund, and develop an informational presentation for the Committee.

Ron Coston, Deputy Attorney General for the State Insurance Fund, provided information regarding the proposed amendment of Idaho Code § 72-205(4), Public Employment Generally - Coverage, and Idaho Code § 72-419(7), (12), Determination of Average Weekly Wage. These amendments were requested by Idaho State Senator Stan Hawkins in order to provide for consideration of income from self-employment in the computation of temporary disability income benefits for volunteer firemen, emergency medical technicians, and paramedics of non-profit corporations. Mr. Coston said that the State Insurance Fund is not sponsoring the legislation and has taken a neutral position with regard to its promulgation.

Recommendation: After discussion, Chairman Barrett asked whether the Advisory Committee wished to endorse the proposed amendments. After further discussion, it was the consensus that the Advisory Committee would endorse the concept of the proposed amendments.

Chairman Barrett indicated he had received a proposal to amend the Advisory Committee Charter to include membership on the Committee of the President of the Workers' Compensation Section of the Bar. Attorney Brad Eidam submitted this recommendation and was present to respond to questions from Committee members. The Committee will take up this issue at the next meeting.

Chairman Jack Barrett asked for three members to form a nominating subcommittee. The members are Jim Nelson, Dave Whaley, and Alan Gardner. Members of the Advisory Committee may submit nominations to a member o the subcommittee.

Lonna Gray, Manager of the Industrial Special Indemnity Fund, announced that the Fund may submit legislation to establish a reserve fund so the Industrial Special Indemnity Fund can pay its unfunded liabilities and does not have to enter into structured settlements. Chairman Barrett suggested that when the Fund has drafted the legislation, it could submit a draft to the Advisory Committee for review.

The agenda for the next meeting will include a report from the nominating subcommittee and from the subcommittee reviewing the Commission's financial status, and Mr. Greenfield's presentation regarding child support garnishments. The next Advisory Committee meeting will be held August 28, 2001, at 9:30 a.m.