Commentary: Workers compensation reform bill not taken up by Senate

Journal Record, The (Oklahoma City), Apr 5, 2004 by William O. Pitts

Large and small employers, business leaders and the state's progress in economic development took a shot last week that raised questions and perhaps answered others about workers compensation reform in Oklahoma.

Sen. Scott Pruitt's bill providing for meaningful workers compensation reform met its demise when it was not taken up by the Senate Judiciary Committee prior to the April 1 deadline.

That result was decreed by Senate President Pro Tempore Cal Hobson, D-Lexington. It was no surprise. From the very start, many doubted the Senate leader would ever allow a Republican bill authored by Rep. Ron Peterson, R-Tulsa, and Pruitt, a Republican from Broken Arrow, to be the vehicle for reforming workers compensation laws. That is not his nature.

More importantly, he is sending an unmistakable message that he wants direct control over this legislation.

In overriding his committee chairman and ordering the bill not be taken up in the Senate Judiciary Committee, chaired by Sen. Jerry Smith, a Tulsa Republican, Hobson unleashed a stringent assault on SB 2619.

Among his remarks was a meretricious statement attacking the business community, declaring he is not surprised that those business people pushing the bill want to take away workers' rights in an attempt to increase profits because that's the way they operate.

Pruitt suggested the barrage of criticism came from talking points provided by trial lawyers. Whether the statement about the business community came from trial lawyers, was a partisan diatribe against the Republican bill, or simply in character for the Senate leader, will be determined later.

Pointing to education, a favorite subject for Hobson, Pruitt noted that in Oklahoma school districts pay $24 million annually in workers compensation insurance premiums. House Bill 2619 would result in reducing these premiums so school districts could save millions which could be used to help educate the children.

The war of words between the two senators probably will continue, but Hobson very probably will have the final say on what may or may not be accomplished. It is becoming increasingly evident that in the matter of workers compensation and lawsuit reforms, Hobson is setting himself up to be the kingpin.

But the bill by Peterson and Pruitt is not the only one available. There are three other measures, all authored by Democrats, and still alive.

Of these, two of the measures perhaps in the mix are House bills authored by Rep. Jari Askins, D-Duncan, a deputy majority floor leader, and the Democrat designee for House speaker next year.

Now out of the Senate Judiciary Committee, Sen. Charlie Laster, D- Shawnee is the Senate sponsor of HB 2434. He replaced Brad Henry when he was elected governor. An attorney, he apparently is not involved in workers compensation litigation.

The bill is intended to do some fixing on the private insurance guaranty association, which has three funds. One of them is a workers compensation fund that is to ensure workers are paid in the event their insurance carrier goes bankrupt. There is talk of insufficient money in this fund and a need to increase fees on premiums to rectify the problem.

Employers argue if they are going to have to pay higher premiums to bolster this fund, there ought to be some offset savings in the form of workers compensation improvements that would reduce other costs.

They see this bill as a vehicle in which it could be accomplished. But that may not be the case.

Askins indicated she had not been approached by anyone about a trade-off. She also left the impression there is some doubt about what will happen to the bill.

Her other one is HB 1466. In the Senate it is being carried by Sen. Mike Morgan, D-Stillwater, an attorney. This measure is in a conference committee where it was sent last session. It was supposed to have been used for workers compensation reform then, but no agreement could be reached and the bill was left in conference with little substantive language.

My way or the highway?

Askins acknowledged HB 1466 is available, saying she thought it might be used again this year to pound out meaningful reform, but now concedes that probably won't be the case. She cited a third bill that was introduced by Hobson and Speaker of the House Larry Adair, D- Stilwell, which she thinks will be the vehicle for whatever is done.

Still in a one-page shell form, SB 1531 has passed the Senate and is out of committee in the House. It is destined to go to a conference committee.

Frustrated by years of inability to get significant workers compensation reform employers and business, leaders now potentially find their hopes for reducing premium and litigation costs as well as higher claims costs in Hobson's hands.

He holds the key to this legislation so vital to the business community and to the state's economic growth. How much they can negotiate with him and how far they are willing to compromise remains questionable. Pruitt says meaningful workers compensation reform legislation is on life support.