Allan F. Ramsaur, TBA Executive Director
(800) 899-6993 or (615) 277-3200
aramsaur@tnbar.org
February 26, 2004
Witnesses detail complicated nature of workers’ comp debate
Legislative committees considering reforms to the workers’ compensation system continued hearings this week, with much of the testimony showing the complicated nature of the issue.
The Workers’ Comp Ad-Hoc Committee heard from several witnesses, including Deece Eckstein, who told the committee about Texas’ experience with workers’ comp reform and the many issues outside the control of the legislature — any legislature — that have powerful influences on the system.
Eckstein told how the business cycle, particularly as it applies to insurance carriers, has a substantial impact on the premiums companies pay for this kind of coverage. In what he called “soft” economic years, in which stock market and interest rates are up, competition for premium dollars heats up because investment earnings soar. When the “hard” economic times hit and there is little profit to be made in the markets, insurance companies raise premiums and tighten underwriting standards producing a “crisis.” This recurring cycle cannot be eliminated, he stated, by changes in the workers’ compensation system.
Another witness was Tony DiDonato of the National Council on Compensation Insurance. He displayed a number of tables attempting to isolate why costs are where they are in Tennessee. One point he made was that the occupational distribution in this state is a little more dangerous than in many other states. When the other states’ figures are adjusted as though they have the same job breakdown as Tennessee, many increase substantially.
Another of his analyses made a point familiar to those following this debate: Tennessee’s figures for permanent partial disability are near the top in the Southeast. However, upon further analysis, he concluded that this is true in part because the frequency of such claims is higher here. In discussing the costs associated with such claims, he noted that our indemnity costs are relatively low. When analyzing medical costs, he noted that the area driving higher costs seems to be hospitals and related services rather than physician costs.
The Senate Commerce, Labor and Agriculture Committee also held additional hearings this week on workers’ compensation reform.
Bill to abolish Tennessee Plan moves out of subcommittee
A bill to abolish the Tennessee Plan for selecting appellate court judges was voted out of a subcommittee in the absence of a number of its members. If passed, the bill would reverse the legislative decision to establish the current selection procedures and would be very harmful to the justice system in Tennessee. TBA members who are concerned about this should contact their representatives today or this weekend since the bill is scheduled for a hearing in the House Judiciary Committee next Wednesday morning.
Update on bills of interest
A bill has been introduced that attempts to overturn the methods of service of process not only in the General Sessions Court but in the courts of record as well. The sponsor’s intent seems to be to amend it to set up a licensing system for private process servers and limit service to license personnel, sheriff’s deputies and attorneys and their employees. We are following this measure with keen interest.
A TBA-backed bill dealing with the taxation of family entities when a trust is a member was scheduled for subcommittee action this week but was rolled in order to resolve technical caption issues. No objections to the measure have surfaced.
Another TBA supported bill, the Tennessee Uniform Trust Code, is tentatively scheduled for a hearing next week but may have to be rolled in order to be able to place the comments before members as they consider the bill.
Keep up to date on legislation of interest
The TBA bill tracking service lets you read abstracts of bills, check their status in both houses, find out who is sponsoring them and link to full versions of the legislation.
TBA Watch List Monitor close to 300 bills and resolutions of interest to the Tennessee legal community.
TBA Action List Monitor legislation in which the TBA has an interest of record — bills the TBA initiated, bills on which the TBA has taken a position or bills on which the TBA has policy.
Questions, comments? Contact TBA Legislative Counsel Steve Cobb at SAC@wallerlaw.com or TBA Executive Director Allan F. Ramsaur at aramsaur@tnbar.org
