Government Relations Update

Weekly Government Relations Update
by Jon Bennion, Montana Chamber of Commerce Government Relations Director

The Montana Chamber of Commerce Presents

CHAMBER CAPITOL CONNECTION

August 2, 2010

Monthly Government Relations Update

In this Issue:

• Is Montana’s Economy Recovering?

• Workgroup on Exclusive Remedy Revisions

• Work Comp Reform Bill Language Finalized

• Medical Marijuana Reform for the Private Sector

Is Montana’s Economy Recovering?

Montana’s economic outlook is slowly improving, with heavy emphasis on slowly, according to Patrick Barkey and Paul Polzin of the Bureau of Business and Economic Research at the University of Montana.

“Montana’s Economic Recovery – Making Sense of Mixed Signals” continues its seven-city tour this week, as part of the Montana Chamber’s Mid-Year Update to the Economic Outlook Series. There is still space available to attend in six locations around the state:

• Billings: Tues., Aug. 3, 12:00 – 1:30 p.m., Hilton Garden Inn

• Bozeman: Wed., Aug. 4, 7:00 – 8:30 a.m., GranTree Inn

• Butte: Wed., Aug. 4, 12:00 – 1:30 p.m., War Bonnet Inn, Butte

• Helena: Thurs., Aug. 5, 7:00 – 8:30 a.m., Great Northern Hotel

• Great Falls: Thurs., Aug. 5, 12:00 – 1:30 p.m., Hilton Garden Inn

• Missoula: Thurs., Aug. 12, 12:00 – 1:30 p.m., Hilton Garden Inn

You must register beforehand to attend the Mid-Year Update, so contact Dee Durand ASAP at 406-431-7511 (cell), or email her at dee@montanachamber.com.

The Montana Chamber Foundation sponsors the annual Midyear Update. Sponsors for the series are BlueCross BlueShield of Montana; Glacier Bancorp; Liberty Northwest; Montana State Fund; Northern Broadcasting; NorthWestern Energy; and PPL Montana. Each event has local sponsors, including the local chamber of commerce.

Revisions to MT Exclusive Remedy

This past spring, the Montana Supreme Court issued an important opinion that opens the door to more frivolous tort cases against employers. The Chamber had intervened in this case through an amicus brief.

In Alexander v. Bozeman Motors, the plaintiffs were challenging Montana’s workers’ compensation exclusivity statute by directly suing their employer for injuries. The law states that all work-related injuries must go through the worker’s compensation system, except for cases where an employer or co-worker intentionally injures the employee by an intentional and deliberate act. A criminal assault on an employee would be an obvious example of this.

The Court’s opinion allowed one of the plaintiff’s claims to go forward to trial. It stated that since one worker had a similar injury than that experienced by another employee, a reasonable person may conclude that the employer intended for the injury to happen the second time.

The Montana Chamber has organized a work group to look at this case, discuss the consequences, and write legislation to strengthen the law in order to prevent the courts from opening the door to these frivolous lawsuits. Employers and businesses need more certainty, not more lawsuits.

If you have any questions about this case or our reform efforts, please contact Jon Bennion, Government Relations Director, at jon@montanachamber.com or 406-442-2405, ext. 104.

Workers’ Compensation Reform Package Language Finalized by LMAC

The 2011 Legislative Session is shaping up to have the biggest debate on workers’ compensation since the early 1990’s. Montana has the second highest work comp rates in the country, and a proposal is moving forward that will overhaul the current system.

Over the past three years, the Governor’s Labor-Management Advisory Council has studied the work comp system and analyzed the cost-drivers. Bill Dahlgren of Sun Mountain Sports in Missoula represents the Montana Chamber on this board.

A few months ago, the Council took its reform ideas to the Economic Affairs Interim Committee (EAIC), which unanimously approved going forward with drafting legislation for the proposals. The LMAC has finalized the language for the bill, which will be reviewed by the EAIC in August.

The proposals include the following:

Creating a more efficient and improved benefit delivery system by: ending TTD at maximum medical healing & impairment rating, immediately starting to PPD based on if employee is back to work at full wage, making employability assessment unnecessary to determine PPD payment, increasing maximum weekly PPD rates to 75% of SAWW, and determining wage loss percentage to be equal to impairment rating

Codify the use of the 5^th Edition of the AMA Guides to Impairment Ratings

Implement an early stay at work/return to work program

Set medical reimbursement rates at 150% of Medicare

Set a 14 day limit for insurer to accept or deny a claim

Provide retroactive payments for waiting period after 21 days of disability

Adopt course and scope language on breaks and recreational activity

Statutory closure of claims after 3 years with limited reopening provision

Allow settlement of future medical benefits

Limited payment of lawyer fees in medical only disputes

Adoption of medical utilization and treatment guideline

The LMAC will meet in August to hear cost projection data from NCCI. Based on rough estimates of the cost saving ideas with the increase in benefits, the savings are projected to be 4.4 to 1 conservatively, and up to 8.9 to 1. But the numbers from NCCI will likely be different, so many business groups are anxious to verify that savings will occur before any benefit increases are passed.

The Chamber has been very active in pushing for cost savings measures during the past two sessions and the interim. We will continue to make workers’ compensation reform and savings a key issue in our legislative agenda.

Medical Marijuana Reform Bill for the Private Sector

A ballot initiative largely forgotten after the 2004 election has exploded on the scene over the past year to create problems for schools, cities, and businesses all around the state. Medical marijuana use has skyrocketed at exponential levels leaving many business owners confused about their rights as employers.

The Montana Chamber has organized a workgroup and held meetings regarding needed changes to the medical marijuana laws for employers. We attended the subcommittee of the Children, Families, Health and Human Services interim committee on this issue last week, and received an invitation to present our reform ideas at their next subcommittee meeting on August 12.

Our draft proposals are being finalized, but they involve needed changes to:

1)      Barring Wrongful Discharge & discrimination claims based on medical marijuana;

2)      Making sure workers’ compensation does not cover medical marijuana;

3)      Prohibiting employees from possessing, transporting, transferring or otherwise being involved with medical marijuana during the course and scope of employment; and

4)      Expanded drug testing for employees that drive for any or part of their job, or are involved with the instruction or supervision of minors.

We will keep you updated on the progress of these ideas over the remaining months left before the Legislature meets in January. If you have a medical marijuana issue come up in your business, please contact Jon Bennion, Government Relations Director for the Montana Chamber at jon@montanachamber.com or (406) 442-2405, ext. 104.

The Montana Chamber of Commerce Presents CHAMBER CAPITOL CONNECTION
August 2, 2010	Monthly Government Relations Update
In this Issue: • Is Montana’s Economy Recovering? • Workgroup on Exclusive Remedy Revisions • Work Comp Reform Bill Language Finalized • Medical Marijuana Reform for the Private Sector	Is Montana’s Economy Recovering? Montana’s economic outlook is slowly improving, with heavy emphasis on slowly, according to Patrick Barkey and Paul Polzin of the Bureau of Business and Economic Research at the University of Montana. “Montana’s Economic Recovery – Making Sense of Mixed Signals” continues its seven-city tour this week, as part of the Montana Chamber’s Mid-Year Update to the Economic Outlook Series. There is still space available to attend in six locations around the state: • Billings: Tues., Aug. 3, 12:00 – 1:30 p.m., Hilton Garden Inn • Bozeman: Wed., Aug. 4, 7:00 – 8:30 a.m., GranTree Inn • Butte: Wed., Aug. 4, 12:00 – 1:30 p.m., War Bonnet Inn, Butte • Helena: Thurs., Aug. 5, 7:00 – 8:30 a.m., Great Northern Hotel • Great Falls: Thurs., Aug. 5, 12:00 – 1:30 p.m., Hilton Garden Inn • Missoula: Thurs., Aug. 12, 12:00 – 1:30 p.m., Hilton Garden Inn You must register beforehand to attend the Mid-Year Update, so contact Dee Durand ASAP at 406-431-7511 (cell), or email her at dee@montanachamber.com. The Montana Chamber Foundation sponsors the annual Midyear Update. Sponsors for the series are BlueCross BlueShield of Montana; Glacier Bancorp; Liberty Northwest; Montana State Fund; Northern Broadcasting; NorthWestern Energy; and PPL Montana. Each event has local sponsors, including the local chamber of commerce.
Revisions to MT Exclusive Remedy This past spring, the Montana Supreme Court issued an important opinion that opens the door to more frivolous tort cases against employers. The Chamber had intervened in this case through an amicus brief. In Alexander v. Bozeman Motors, the plaintiffs were challenging Montana’s workers’ compensation exclusivity statute by directly suing their employer for injuries. The law states that all work-related injuries must go through the worker’s compensation system, except for cases where an employer or co-worker intentionally injures the employee by an intentional and deliberate act. A criminal assault on an employee would be an obvious example of this. The Court’s opinion allowed one of the plaintiff’s claims to go forward to trial. It stated that since one worker had a similar injury than that experienced by another employee, a reasonable person may conclude that the employer intended for the injury to happen the second time. The Montana Chamber has organized a work group to look at this case, discuss the consequences, and write legislation to strengthen the law in order to prevent the courts from opening the door to these frivolous lawsuits. Employers and businesses need more certainty, not more lawsuits. If you have any questions about this case or our reform efforts, please contact Jon Bennion, Government Relations Director, at jon@montanachamber.com or 406-442-2405, ext. 104.	Workers’ Compensation Reform Package Language Finalized by LMAC The 2011 Legislative Session is shaping up to have the biggest debate on workers’ compensation since the early 1990’s. Montana has the second highest work comp rates in the country, and a proposal is moving forward that will overhaul the current system. Over the past three years, the Governor’s Labor-Management Advisory Council has studied the work comp system and analyzed the cost-drivers. Bill Dahlgren of Sun Mountain Sports in Missoula represents the Montana Chamber on this board. A few months ago, the Council took its reform ideas to the Economic Affairs Interim Committee (EAIC), which unanimously approved going forward with drafting legislation for the proposals. The LMAC has finalized the language for the bill, which will be reviewed by the EAIC in August. The proposals include the following: Creating a more efficient and improved benefit delivery system by: ending TTD at maximum medical healing & impairment rating, immediately starting to PPD based on if employee is back to work at full wage, making employability assessment unnecessary to determine PPD payment, increasing maximum weekly PPD rates to 75% of SAWW, and determining wage loss percentage to be equal to impairment rating Codify the use of the 5^th Edition of the AMA Guides to Impairment Ratings Implement an early stay at work/return to work program Set medical reimbursement rates at 150% of Medicare Set a 14 day limit for insurer to accept or deny a claim Provide retroactive payments for waiting period after 21 days of disability Adopt course and scope language on breaks and recreational activity Statutory closure of claims after 3 years with limited reopening provision Allow settlement of future medical benefits Limited payment of lawyer fees in medical only disputes Adoption of medical utilization and treatment guideline The LMAC will meet in August to hear cost projection data from NCCI. Based on rough estimates of the cost saving ideas with the increase in benefits, the savings are projected to be 4.4 to 1 conservatively, and up to 8.9 to 1. But the numbers from NCCI will likely be different, so many business groups are anxious to verify that savings will occur before any benefit increases are passed. The Chamber has been very active in pushing for cost savings measures during the past two sessions and the interim. We will continue to make workers’ compensation reform and savings a key issue in our legislative agenda.
Medical Marijuana Reform Bill for the Private Sector A ballot initiative largely forgotten after the 2004 election has exploded on the scene over the past year to create problems for schools, cities, and businesses all around the state. Medical marijuana use has skyrocketed at exponential levels leaving many business owners confused about their rights as employers. The Montana Chamber has organized a workgroup and held meetings regarding needed changes to the medical marijuana laws for employers. We attended the subcommittee of the Children, Families, Health and Human Services interim committee on this issue last week, and received an invitation to present our reform ideas at their next subcommittee meeting on August 12. Our draft proposals are being finalized, but they involve needed changes to: 1) Barring Wrongful Discharge & discrimination claims based on medical marijuana; 2) Making sure workers’ compensation does not cover medical marijuana; 3) Prohibiting employees from possessing, transporting, transferring or otherwise being involved with medical marijuana during the course and scope of employment; and 4) Expanded drug testing for employees that drive for any or part of their job, or are involved with the instruction or supervision of minors. We will keep you updated on the progress of these ideas over the remaining months left before the Legislature meets in January. If you have a medical marijuana issue come up in your business, please contact Jon Bennion, Government Relations Director for the Montana Chamber at jon@montanachamber.com or (406) 442-2405, ext. 104.

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