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443 Lafayette Road N.

(651) 284-5000
St. Paul, Minnesota 55155 1-800-DIAL-DLI
www.doli.state.mn.us TTY: (651) 297-4198

Workers' Compensation Advisory Council


December 13, 2006
Minutes

Voting Members: Staff:

Stan Daniels Scott Brener


Don Gerdesmeier Debbie Caswell
Glen Johnson Penny Grev
David Olson Patricia Todd
Reed Pollack Jana Williams
Bradley Robinson
Gary Thaden Visitors:
Brad Lehto for Ray Waldron
Paul Cassidy; Leonard, Street & Deinard
Voting Members Excused: Nancy Caven; Alaris Group
David Clark; Western National Insurance
Wayne Ellefson Dave Dederichs; MN Chamber of Commerce
Susan Olson for James Cavanaugh Karen Clayton Ebert; MCIT
Mike Hickey Ken Gildow; RTW
Kevin Gregerson; Wilson-McShane
Voting Members Absent: Tom Hesse; MN Chamber of Commerce
Brian Hicks; MAPS
Julie Schnell Steve Hollander; MARP
Todd Johnson;WCRA
Non-Voting Members: Nancy Larson; MARP
Tammy Lohmanl Commerce
Senator Tom Bakk Bob Lund; State Fund Mutual
Representative Mike Nelson Andy Morrison; Koll, Morrison
Sara Novneskyl MMA
Non-Voting Members Excused: Dorothy Quick; Columbia Park Medical
Group
Representative Denny McNamara Tim Searls; Searls & Associates
Scott Sexton; Corvel
Non -Voting Members Absent: Doug Stacy; WCPA
Linda Carroll Shern; PhRMA
Senator Geoff Michel Mike Wilde; IUOE Local 49
Dan Wolfe; MN APTA
David Wulff; MTLA

Commissioner Scott Brener called the meeting to order at 9:43 a.m. Roll was called and
a quorum was present.

Glen Johnson made a motion to approve the minutes from the March 1, 2006, June 14,
2006, and October 11, 2006, meetings as presented. Don Gerdesmeier seconded the motion.
All voted in favor of the motion and it passed.

This information can be provided to you in alternative formats (Braille, large print or audio tape).

An Equal Opportunity Employer


Workers' Compensation Advisory Council -2- December 13, 2006
Minutes

V. A. Commissioner's Update

Brener noted this is the second term of the Pawlenty administration. He presented his
expectations and perspective of the workers' compensation element at the Department of Labor
and Industry (DLI). He supports the role of the Workers' Compensation Advisory Council
(WCAC). It was his understanding, based upon a meeting of the WCAC several months ago,
that members would like to move forward with a more substantive bill proposal during the odd
years (the budget years) at the Capitol, which would include 2007.

From a leadership side, Brener does not anticipate any changes at DLI. They have made
substantial changes in the workers' compensation management core over the last two years and
have brought in a strong team of leaders. They look forward to maturing that group and
providing a more efficient Workers' Compensation Division administrative process. Brener
outlined a need to streamline the administrative side of the system and noted Patricia Todd is
heading up an initiative to move DLI's systems from an electronic imaging-based system to a
data based processing system. It would be the most substantial data based workers' compensation
program in the country.

Brener noted the employer and employee representatives on the WCAC have been
meeting to discuss the 2007 legislative proposal. The parties are meeting again in early January
and DLI will work with them. He noted the calendar in the House may be very busy and the
WCAC needs to be cognizant of that in order to the find appropriate committee time to review
the WCAC legislative bill.

Brad Lehto asked if the department will have some proposals Brener said it did have
some housekeeping items and constituents have approached DLI about proposals.

Stan Daniels felt it was time to focus on discussions regarding benefits. He suggested
that if the WCAC did not look at benefit increases, the injured workers would do it without going
through the WCAC. He would like it to be addressed properly for the injured workers' at the
WCAC, since that is the purpose of the WCAC. Brener expressed a willingness to discuss
anything the council wishes.

Brad Lehto reported that they discussed benefits with the employer representatives on the
WCAC. He has suggested legislators not introduce legislation, even if it increases benefits, and
encourages them to come to the WCAC. There is some added pressure this year to bring forth
legislation. Brener noted there has been a steady stream of proposals asking for cost containment
and the WCAC will need to find common ground between the various perspectives.

Glen Johnson suggested legislative guidelines for cost containment to control what
insurance companies can charge for workers' compensation. He has had phone calls from
companies saying they can only buy insurance from two or three companies in this state, which
limits their ability to obtain worker's compensation coverage at a lower cost. He asked what
dictates those rates and whether there was no competition available. Brener commented it was
his understanding that the insurance market softened up some over the last twelve months. He
Workers' Compensation Advisory Council -3- December 13, 2006
Minutes

noted some states have limited this by having a monopolistic workers' compensation system. He
is not necessarily advocating for that but it is how other states have dealt with some of those
issues in the past. Johnson asked DLI to get information regarding this issue.

Lehto asked if any of the proposals generated by the three WCAC road trip meetings
were being looked at. Brener said those issues would be fed into the pool of legislative
proposals. Lehto recalled there were some issues that could be looked at and handled internally
at DLI, such as dispute resolution. Brener said DLI has been focusing on strengthening its
mediation process. Todd noted that she is expanding and refining DLI's administrative dispute
resolution processes. This initiative is in the beginning stages and it is anticipated it will take
another full year.

Brad Robinson announced that he would be retiring from the WCAC. Brener expressed
appreciation for the time and effort he has given the department over the years. Robinson was
thankful for the opportunity and stated that the workers' compensation system is much better
than it was 30 or 40 years ago and asked that the WCAC continue the effort.

The next meeting of the WCAC is scheduled for 9:30 a.m. on Wednesday, February 14,
2007.

Reed Pollack made a motion to adjourned at 10:02 a.m. David Olson seconded the
motion. All voted in favor of the motion and it passed.

Respectfully submitted,

Debbie Caswell
Executive Secretary

dc/s

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