Members Present:                     Members Absent:

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

The Minutes of the June 26, 2001, meeting were approved as written.

1. Nominating Subcommittee: Alan Gardner reported on the meeting of the nominating subcommittee. The following topics were discussed:

Term Length: The subcommittee had discussed the 3-year term length set out in the Advisory Committee Charter. It was the consensus that Advisory Committee members were satisfied with the term length and that it should be continued without amendment. It was felt that the first year on the Advisory Committee is primarily a educational year, with more productivity coming in the last two years of the term.

Membership Structure: The subcommittee also evaluated the current structure of the Advisory Committee, including the number of members, the categories, and the suggested option of establishing members to represent specific organizations. It was the consensus that the current structure is working well and that the commitment to consensus and public comment provides non-members an opportunity to identify concerns and to give input on important issues. The subcommittee recommended that organizations wishing to have input send a member to attend Advisory Committee meetings regularly and to participate in the opportunities given for public comment.

Nominations: Mr. Gardner indicated that all of Advisory Committee members whose one-year terms were expiring in 2001 had expressed a willingness to continue serving on the Committee. Their names had therefore been placed on the ballot. In addition, names of individuals recommended for membership by various groups around the state were also on the ballot.

The Advisory Committee agreed that the votes should be cast prior to moving on to the next committee report. Ballots were distributed and the Chairman called for nominations from the floor. No nominations came from the floor. The final ballot included the following nominees:

1 Representative of Workers:

Dan Obray, Painters/Allied Trades Union, Pocatello

Susan Dokken, St. Joseph’s RMC, Lewiston
Tom Kaufman, Kootnenai Memorial Hospital
Robert "Bob" Nord, Labor Relations BBWI (INEEL) 
Maguerite McLaughlin, representing logging

Bob Shosted, J. R. Simplot, Boise

Keith Hutchinson, Twin Falls
John Greenfield, Boise

Jack Barrett, Boise
Alan Gardner, Boise

Steve Millard, Idaho Hospital Assn, Boise

Steve Millard, Idaho Hospital Association, Boise

Alan Gardner, Attorney, Boise

Additional space was provided for write-in candidates in each category. However, no write-in nominations were made.

After the vote, the ballots were counted. The following individuals were elected for three-year terms:

Dan Obray as a representative of workers; Susan Dokken as a representative of employers; Bob Shosted as a representative of insurers; Keith Hutchinson and John Greenfield as claimant attorneys; Jack Barrett and Alan Gardner as employer attorneys; and Steve Millard as a representative of medical providers. Steve Millard was elected as Chairman for the upcoming year. The Advisory Committee affirmed the vote by consensus. The Committee’s recommendations for membership will be submitted to the Industrial Commission for final approval.

2. Subcommittee on Industrial Commission Financial Status: Bob Shosted reported on the meeting of the subcommittee reviewing the Commission’s financial status. He indicated that although the projections look bad right now, there could be a shift in the premium projections of as much as 15%, which would improve the outlook. The subcommittee wants to establish credible projections based on the premium tax receipt information that will be available later this calendar year. The subcommittee discussed alternative funding sources such as charging premium taxes on the standard premium rather than a discounted premium, and a balancing tax similar to the one created for the Industrial Special Indemnity Fund where a temporary increase in the premium tax is automatically triggered if the fund balance goes below a certain level. However, until the premium tax collections come in later this year, it would be premature to predict what the future might be. There is some indication that insurance carriers will be eliminating discounts as costs rise. The subcommittee will meet again after the 2002 premium rates are established for Idaho.

3. Uninsured Employer Fund: Chairman Jack Barrett provided an update on the progress of the subcommittee on an uninsured employer fund. Informational materials have been compiled and distributed to the members of the subcommittee. Mr. Barrett indicated that work on the project would continue during the upcoming calendar year.

1. Child Support Garnishments: John Greenfield reported that he is still working on this project and will report on it at the next meeting.

2. NCCI – Trends in Workers’ Compensation: Mike Taylor of the National Council on Compensation Insurance gave a presentation on trends in workers’ compensation. He gave an overview of the industry as a whole and Idaho’s workers’ compensation system specifically. He reported on recent trends, economic drivers, indemnity and medical benefits in Idaho, and legislative issues. Time was provided for questions and answers.

3. Insurance Fraud – Proposed Amendment of IC §§ 72-801 and 41-293(1)(f): John Greenfield presented a proposal to amend the Workers’ Compensation Law and the Department of Insurance laws to make them consistent with the criminal fraud statutes and to prevent unreasonable prosecution of workers’ compensation claimants for false statements about issues that are not material to a claim. After discussion, the Chairman asked whether a subcommittee should be formed to review the statutes and their history and make a recommendation as to whether any legislation should be presented to the Advisory Committee on this issue. It was decided that such a subcommittee should be formed. The following members were appointed: John Greenfield, Alan Gardner, Dave Whaley, Dave Gribskov, and Keith Hutchinson. It was suggested that the subcommittee also include a representative of the Department of Insurance and a Deputy from the Criminal Division of the Attorney General’s Office. The specific assignment of the subcommittee is to meet and to consult with individuals from the Attorney General’s Office and the Department of Insurance and then report back to the Advisory Committee as to whether the statutes should be amended. The subcommittee members were cautioned not to get into an adversarial position. They were advised to try to find a balance that would not undermine the fraud statutes.

1. Commission Feedback: Advisory Committee member Alan Gardner indicated that whenever the Committee makes a recommendation to the Commission, the Committee would like to receive feedback from the Commission as to whether it has implemented the recommendations.

Commissioner Jim Kile reported on the status of the in-state adjusting recommendations. The issue had been reviewed and discussed, and the Commission had adopted the Committee’s position. Staff is currently working on the language of the letter recommended by the Committee. A number of sureties have been contacted informally and the results have been positive. The Commission has also received a number of anonymous reports of violations of the in-state adjusting requirements through its website. Commissioner Maynard stated that the Commission takes the Committee’s recommendations very seriously and expects to be held accountable for implementing the recommendations and for reporting on their impact on the administration of the workers’ compensation system.

2. Decision on Membership: The Committee indicated it would like to receive a decision on the membership selections from the Commission within the next 10 to 14 days.

The next meeting is scheduled for December 11, 2001, at 9:30 a.m. The agenda will include a report from the subcommittee reviewing the fraud statutes, a report from the subcommittee looking at the Commission’s financial status, a report from John Greenfield on garnishments for child support, and a report from the Industrial Commission on what actions have been taken on the Committee’s recommendations.

The meeting was then adjourned.