Montana State Legislature

2009-2010 Economic Affairs Committee

The Economic Affairs Interim Committee (EAIC) is a joint bipartisan committee of the Montana Legislature that meets during the interims between legislative sessions. It conducts interim studies and generally reviews issues related to economic development. It also monitors the programs and functions of the Departments of Agriculture, Commerce, Labor and Industry, and Livestock, as well as the Office of the State Auditor and Insurance Commissioner and the Governor’s Office of Economic Development.

The 2009-2010 EAIC studied workers compensation (SJR 30) and selected state laboratories (SJR 14) and looked into the impact of brucellosis on parts of the state. An overall summary is in the final report and study details are in the SJR 14/SJR 30 Final Reports.

NOTE: Materials are available for a work group on limited issues related to the LMAC bill.

A work group on concerns related to a designated surveillance area for brucellosis in livestock met Feb. 11 and March 8. The group reported back to the EAIC at its March 30-31 meeting. Background information: Mar. 8 agenda; MEPA Legal Opinion; Feb. Agenda; Letters; APHIS Concept Paper; Response to Farm Bureau; Herd Range Map; Rancher Comments; Other State DSAs; Equal Treatment Opinion (draft); Fiscal Info; Beartooth Letter and Memo; Idaho Letter; Nebraska email; elk-wolf report; June Letter to Board; Interagency Bison Management Plan; Wyoming DSA Map; Letter to Committee; and Q/A.

Agenda - Minutes

SJR 30 Study Materials
- Revised bill draft, LC 310, on Montana State Fund board
- Revised bill draft on state choice of work comp coverage, LC 311
-- Comments on LMAC bill draft: Sen. Brown, MMA
-- Other comments: Dr. Gorsuch , Al Smith, regional provider data from Dr. Jarrett

Handouts or Links to Reports
- Revised bill draft, LC 309, defining order for Dept. of Livestock
- Revised bill draft, LC 312, on Medical Assistance Programs

Staff Reports
- Updated but still incomplete committee final report
- Bill draft changes

Draft Agenda, Minutes

SJR 30 Study Materials
- Bill draft from the Labor-Management Advisory Council, HB 87
-- Cost analysis of LMAC bill by NCCI, short form, long form
-- Comparison of NCCI-Employee Relations Division analysis
-- Combined analysis of LMAC bill by Legislative Fiscal
-- Comments from Dr. Steele, Billings Clinic
--LMAC handout
- Bill draft on revising Montana State Fund board
- Bill draft on state choice of work comp coverage
-- Legislative Fiscal analysis of state choice bill draft
- More information on employer liability vis-a-vis work comp
- Ann Clayton report and recommendation on exemptions
- Memo on retroactive application of overdue work comp premium
- Passing along potential savings to policyholders, comments
- Memo on issues related to premiums on certain firefighters
- Bill draft on Montana State Fund regulation (same as in June)
- Vocational Rehabilitation Provider comments 1 & 2 on LMAC bill

SJR 14 Study Materials
-SJR 14 Draft Report on State Laboratory Facilities

Handouts or Links to Reports
- Department of Agriculture Bill Drafts - Weeds, Bonding
- State Auditor's Office Bill Drafts - Exchange, Rate Review.
---Market Reform, External Review
- Department of Commerce Bill Drafts
- Department of Labor and Industry Bill Draft Overview
Committee Draft Final Report
- Bill draft defining order for Dpt. of Livestock; analysis/comment
---Sen. Barrett email
- Memo (revised) on Medical Assistance Programs, Bill Draft, Add
- Memo on Montana Historic Preservation & Development Cmsn
- Rule Review
- Article on national ID for livestock shipped over state line
- Article on unemployment benefits, disincentive to part-time work
- Information from Citizens for Clean Energy on Bio-Fuel
- John Fitzpatrick handouts: Caldwell reprints, electricity prices
- Livestock Loss Reduction & Mitigation Report
- Wood Products Revolving Loan Fund Report
- Letter to Legislative Council requesting revised duties

Agenda, Minutes

SJR 30 Study Materials
-Memo on Exemptions
-Truncated bill draft before Labor-Management Advisory Council, Summary explanation
-Member-requested bill drafts on MSF Board, state choice of plans, regulatory clarification
-Workers' Compensation Paid By Plan Type, 2006-2008

SJR 14 Study Materials
Comparison of Lab Testing Services in Selected States
Email regarding outsourcing of lab testing
Draft Report
Appendix A - Text of Senate Joint Resolution No. 14
Appendix B - Letter on importance of maintaining accreditation
Appendix C - Letter on provisional accreditation
Appendix D - Memo on lab planning
Appendix E - Letter extending provisional accreditation
Appendix F - Inventories of study laboratories
Appendix G - Diagnostic laboratory animal tests, 2005-09
Appendix H - Montana State University map (to come)
Appendix I - MSU Long-Range Planning Document
Appendix J - Projected Costs for new combined lab facility

Handouts or Links to Reports
--Rule Review for late May, early June
--Draft Letter for comment on Yellowstone National Park plan
--Summary of Budget Options for Agencies Monitored by EAIC
--Member-requested bill draft on definition of "order"
--Professional license monitoring - Board of Nursing staff review, questions for discussion, Billings Gazette article 1 and 2

Joint Agenda
May 26 Agenda ,Minutes

SJR 30 Study Materials
-Fraud presentation - Ben Jones of Montana State Fund
-Memo and Options on Montana State Fund oversight
-Report on Audit, Actuary Costs for Montana State Fund
-Memo on NCCI Loss Costs and Montana State Fund rates
--Actuarial analysis of State of Montana's work comp options
--Costs related to regulation of Montana State Fund (LFD)
--Department of Administration review of work comp choice --Montana State Fund estimate on impacts of state "choice"
-Information from Montana State Fund on rate-making
-Information from Montana State Fund on regulatory review
-Information from Montana State Fund on NCCI Loss Costs
-Information from Montana State Fund on Premium Components
-Information from Montana State Fund on certification issues
-Estimated Costs and Cost Savings of LMAC package proposal
-Labor-Management proposal /elements vis-a-vis status quo
-Labor-Management consensus statement for package
-Labor-Management early return-to-work model
-Labor-Management schedule, startup order, charter, members
-SJR 30 Final Report Outline
-Comment on HIPAA Subcommittee work
-NCCI comparison of all state loss cost recommendations
-Update on State Funds and Regulatory Review with rankings
-Old Fund Budget Review
-Subrogation from Ann Clayton

SJR 14 Study Materials
Questions and Answers on Lab Study

Handouts or Links to Reports
- Letter to Board of Livestock on work group recommendations, proposal for funding, and SJR 14 recommendations
- Letter to Department of Livestock regarding brand inspectors
- Memo on Beef Checkoff and Related Issues
- Options for Livestock issues
- Rule Review for April and May
- Comment from Errol Rice (Montana Stockgrowers Assn)
- Legislation Information from Agriculture, Labor & Industry

Agenda,Minutes

SJR 30 Study Materials
--Ann Clayton report on benefits and benefit handout
--Ann Clayton report on attorney-medical Fees
--Ann Clayton report on course & scope
--Ann Clayton report on physician access
--Ann Clayton report on presumptive illness, handout
--NCCI Workers' Compensation System Overview, MT report
--Summary and Study of Regulation of State Funds
--Tentative LMAC Proposals on Settlements, Course&Scope, Claim Closure
--Benefits proposal
--Montana State Fund chart on competition-rates
--Montana State Fund report to Board on State Auditor rate review

SJR 14 Study Materials
--Draft Report on State Labs for Livestock, Wildlife, Health

Handouts or Links to Reports
Memo on Board of Outfitters/Board of Dentistry Concerns
--Written Public Comment on Limited Access Permit
Rule Review for February/March
Brucellosis Issues:
Map of Elk Migration in Greater Yellowstone Area
Fish, Wildlife & Parks Information on Brucellosis in Elk Herds
Work Group Recommendations

Agenda, Minutes

SJR 30 Study Materials
--Jan. 20 handouts or background information
--Ann Clayton's material on insurance pricing (updated)
--Ann Clayton's review of state fund regulation elsewhere
--Old Fund fiscal analysis (same as Nov. 17)
--New Fund fiscal analysis by LFD, by Montana State Fund
--Montana State Fund equity/reserves report & LFD handout
--Montana State Fund organizational charts, Board of Directors
--Montana State Fund charitable contributions FY08-FY10
--Montana State Fund Premium Assessment report & LFD handout
--Competition in Workers' Compensation, Appendices A, B, C
--Competition and Market Share Summary from State Auditor
--Commissioner of Insurance Regulatory Oversight Review
--Addenda handed out at meeting on Competition Report
--SJR 30 update
--Case Study of Tumbleweed Runaway Program Insurance Costs
--Comments of Keith Brownfield, Victory Ins., on Plan 2 Insurers
--Classification and Review Committee/MSF Class Code Use
--MSF Internal Audit Charter
--MSF Recommended Tier Criteria, Tier Rating Plan
--MSF Handouts 1 and 2, Differences between Plans 2 and 3
--NCCI Handout on Court, Legislative Impacts on Premium Costs
--Summary of Legislative Performance Audit/Recommendations
--Legislative and BOI Legal Counsel Opinions on MSF Building
-- Letter on MSF Building as Asset
--Jan. 21 handouts or background information
--Department of Labor and Industry Reports on:
   --Injury Duration,
   --Update on Work Comp Paid as a Percentage of Payroll
   --Update on Utilization and Treatment Guidelines
--Independent Insurance Agents and Plans 2 and 3
--Options for Revising Medical Issues in Work Comp
--Options for Revising Workers' Compensation Structure
--Department of Administration Implementation of HB126
--HIPAA and Montana's Work Comp Information Exchange
--University System Workers' Compensation Report, Rate History

Handouts or Links to Reports
--Department of Livestock -- Brucellosis Data
--Memo on Brucellosis Proposed Plan, Letter from Staff Attorney
--Questions from Montana Farm Bureau on Brucellosis Order
--Comment from Ranchers, E-mail comment from Sen. Barrett
--Rule Review

Agenda, Minutes

SJR 30 Study Materials
--Memo on medical legal panels, defensive medicine, malpractice; Table 1 on legal panels, Table 2 REVISED on malpractice
--Memo on claims as percentage of Plan 1 payroll, Table, Explanations from MMIA, NCCI+slides, State Fund, MUS, MACO
-- Old Fund Fiscal Analysis
--Ann Clayton's material on insurance pricing, etc.
--Ann Clayton's material on workers' compensation fraud
--Labor Management Advisory Council schedule as of 9/09
-- Summary of Utilization and Treatment Guideline meetings
--Billings Clinic handout on work comp medical providers

Member Issues
--Organizational charts: Health Care, Business Licensing Boards
--Budgets for Licensing Boards
--Licensee and Board Data for Health Care 09, Business 09 Boards and for Health Care 08, Business 08 Boards

Unemployment Insurance (UI)
--Articles: Department, MT Standard
--Department UI presentation
--Department UI factors
--Department news release on unemployment insurance taxes
--Department news release on unemployment benefit extension

Handouts or Links to Reports
--Rules for September/October 2009
--Legislative Audit Report on Fantasy Sports (Exhibit 12)
--Memo from Board of Horseracing (Exhibit 13)

Agenda, Minutes

SJR 30 Study Materials
--Committee Priority Perceptions
--SJR 30 Goals and Study Topic Tie-Ins
--Determination Matrix, Report for Study States
--Research Outline for Best Practices among States
--Ann Clayton report on SJR 30 and Other State Practices
--Medical Fee Schedule Information
--Memo on Medical Review Boards
--Claim Closure Material provided LMAC: Summary, Report
--Return-to-Work Material Provided to LMAC
--Return-to-Work Memo with Concerns of Sample Employers
--Return-to-Work Information from State of Montana
--MMIA Score Card for Best Practices
--MMIA Early Return-to-Work Handout
--WorkSafeMT Strategic Plan - See WorkSafeMT Web site
--Montana State Fund Safety Website Information
--Montana State Fund Safety Programs, Data
--Montana State Fund Permanent Partial Disability Slides
--Glossary of Workers' Compensation Terms
--Reports to LFD State Fund Subcommittee, 2007-2008:
**Budget Analysis/Cash-Accrual, Policy Options, Premiums,
**Oversight Comparisons

Handouts
--Rules for August
--Labor Day Report

Agenda, Minutes

SJR 30 Information on Workers' Compensation Study
--NCCI presentation + Scenarios for Cost Reductions (emailed to committee in response to a question)
--Workers' Compensation 101
--Activities
--Workers' Compensation in the United States - A Primer
--Workers' Compensation in Montana - WCRI booklet
--Workers' Compensation Annual Report for FY2007
--Fraud Memo, State Fund Review
--Report from 2003-2004 Interim Study on Work Comp
--SB 304 Summary of Issues related to MT State Fund
--Labor Management Advisory Council presentation (Exhibit 5)
--List of members of Labor-Management Advisory Council
--Montana State Fund comments on perm partial disability

SJR 14 Information
--Partial List of State Laboratories

Agency Presentations
-- Governor's Office of Economic Development
-- Commerce

Letters Sent
-- Appointments to Rail Service Competition Council

Senate Joint Resolution No. 14 - Lab Study
-- Partial Listof State Laboratories
Senate Joint Resolution No. 30 -Workers' Compensation Study
--Proposed Legislation - LC 255

Final Report: "Taking Stock and Monitoring"
SJR 14 Report on Study of State Laboratories
Draft Work Plan, Revised Draft Work Plan
Rule Review
2009 -- July August September October
2010 -- Dec/Jan February March April May June August

Subcommittee on Medical Impairment Programs
Subcommittee on State HIPAA Laws and Work Comp

Links to Brucellosis-related issues:
--Wyoming Designated Surveillance Area map outline
--Wyoming Brucellosis Management website
--Idaho Dept. of Agriculture brucellosis website
--Interagency Bison Management Plan website, 2010 report