Overview of Advisory Council

OVERVIEW OF THE
MASSACHUSETTS WORKERS' COMPENSATION
ADVISORY COUNCIL

HISTORY

The Workers' Compensation Advisory Council (Council/Members) was created in 1985 by the Legislature can be found at Massachusetts General Laws, Ch. 23E, sections 3, 19, 15-17, and Chapter 152, sections 7F, 11, 53A, and 65. The Council's predecessor organization was a task force appointed in 1983. the task force, originally comprised of 24 members from business an labor, developed a comprehensive reform bill that was passed in 1985 and, ultimately, institutionalized the Council. The Council now consists of 16 Members diversely related to the workers' compensation system.

MEMBERSHIP

Composition of Membership
ADVISORY COUNCIL 16-MEMBERSHIP COMPOSITION:

REQUIREMENTS FOR INDIVIDUAL MEMBERS: The five labor representatives must be members of a duly recognized  independent employee organization, and at least one of them must be a disabled worker. the five business Members must represent manufacturing classifications, small business, contracting classifications, and self-insured businesses. the Massachusetts AFL-CIO and the Associated Industries of Massachusetts are required to be represented on the Council.

Appointment Processes
INDIVIDUAL MEMEBRS: members of the Council are appointed by the Governor and serve 5-year terms. Terms are overlapping and Members may be re-appointed. 

LEADERSHIP: The Chairman and vice chairman of the Council, one of whom must be a labor representative and one of whom must be a business representative, are appointed from among the voting Members by the Governor for a term of 2 years. Such appointees may not succeed themselves as chairman or vice chairman. The chairman is responsible for running the meetings.

Compensation/Remuneration
Council Members are reimbursed for travel and other necessary expenses incurred in the performance of their duties as Members. These expenses are paid from a Special Fund established by statute.

Scope of Member Activities
The scope of Member Activities

• attending regular meetings
• serving on subcommittees, and
• testifying at hearings.

GOALS

Formal Goals
The mission of the Council is to monitor, recommend, give testimony, and report on all aspects of the workers' compensation system, except the adjudication of particular claims or complaints. This may include the issuance of reports, recommendations for legislation, policies and programs, the conducting of research, and the collecting of data from public and private sources. Goals include making the agency more efficient and effective in resolving disputes and providing services to injured workers and employers. The Council seeks to make the agency efficient through appropriate personnel and funding. In recent years, Council Members have focused on ensuring that the Department of Industrial Accidents (DIA) operates effectively and that its assessments are reasonable and appropriate, on studying and addressing the effects of recent reform proposals, and on offering recommendations to improve the system.

RESPONSIBILITIES

Scope of Responsibilities
By statute (c. 23E sec. 9; c. 23E sec. 53A; and c. 152 sec. 65) the formal responsibilities of the Council are:

• to publish an annual report evaluating the state of the workers' compensation system:
• to evaluate the annual operating budget of the DIA and to report to the Director of Labor and Workforce Development (with the vote of 7 Members, the Council can recommend its own version of the operating budget);
• to evaluate the Trust Fund budgets from the DIA and to report to the Director of Labor and Workforce Development (with the vote of 7 Members, the Council can recommend its own version of the Trust Fund budget);
• to offer testimony on rate filings at hearings;
• to evaluate the qualifications of administrative judges and administrative law judges;
• to conduct studies on workers' compensation issues;
• to review the operations of the dispute resolution system;
• to review and provide testimony to the legislature on workers' compensation bills; and
• to review employer assessments to fund the agency.

Contacts with Policymakers
Governor: Appointments on the Council are made by the Governor. The results of studies, the rating if qualifications of administrative judges, budget matters, and legislative recommendations are communicated directly to the Governor.

Legislature: The Council must report at least once a year in writing on the state of the workers' compensation system to the Joint Committee on Labor & Workforce Development and House and Senate Committees on Ways & Means. The Council testifies at Labor & Workforce Development hearings, provides its analyses of the DIA to the Ways and Means Committees: fines, penalties and cause of action against employers who do not carry insurance, the budget and spending of the DIA, adopting competitive rating, and appropriate levels of benefits for temporary and partial disability.

Administrative Agency: the Council oversees the operations of he DIA, which falls under the umbrella of the Executive Office of Labor and Workforce Development. The DIA provides the Council with budgetary information and other data to evaluate its operations. In turn, the Council shares all information and reports wit the DIA and makes recommendations to the agency. Significant recommendations have included agency budget, spending, and year-end balances; the appropriate number of judges at the agency; audits of insurance carrier payments; backlogs of cases in the dispute resolution system; stop work order fines; and funding for the agency's database conversion to Oracle. The Secretary of Labor and Workforce Development also receives the Council's review of the DIA. The Commissioner of Insurance receives an actuarial analysis of rate filings and the Council is a party to rate negotiations and agreements.

ACTIVITIES

The Council's Primary Activities
The priorities and activities of the Council are determined at monthly meetings through discussions with Members and the executive director. Often a Member will raise a concern and a discussion will follow. If enough interest is generated, the Council may vote to study a specific matter in greater detail. Sometimes the legislature may ask the council to study a specific issue.

Current Priority Areas And Related Activities:

• Employee Misclassification;
• Uninsured Employers;
• Scar-Based Disfigurement Benefits;
• Increasing Maximum Burial Allowance;
• Adequacy of IAB Medical Rates - Medical Fee Schedule Task Force

Formal and Informal Subcommittees: Budget Subcommittee - reviews the spending and budget allocation of the DIA. Legislature Subcommittee - reviews all workers' compensation legislation before the Joint Committee on Labor & Workforce Development. Uninsured Employer Task Force - develops and proposes anti-fraud initiatives to enhance the investigation process and strengthen the penalties against uninsured employers.

Research Studies: The Council staff conducts research. Studies of more complex issues may require the assistance of outside consultants. Study conclusions are reported are reported to the Governor, Legislature, and the DIA. Among the more recent issues that the Council has studied are insurance rate filings and workers' compensation wage replacement rates.

Dissemination: The Council is mandated to issue an annual report evaluating the operations of the DIA and the Massachusetts workers' compensation system. The Advisory Council maintains a website (www.state.ma.us/wcac ) to allow public access to agendas, minutes, and reports.

MEETINGS AND DECISION RULES

Meetings
Number of Meetings Per Year: 12

Quorum Requirements: The presence of seven voting Members, at least two of whom must be representative of labor, constitutes a quorum. No action may be taken by the Council without the affirmative vote of at least seven voting Members.

Bylaws: None

Sunshine Laws: Yes

Average Time Of A Regularly Scheduled Council Meeting: 2 hours

Meeting Locations: Boston

Meeting Attendees: The Council's meetings are open to the public. the commissioner, senior judge, director of administration, and various representatives fro the DIA typically attend meetings. Furthermore, representatives fro the Legislature, Workers' Compensation Rating and Inspection Bureau, private industry, administrators of workers' compensation, and Council staff also attend monthly meetings.

Agenda: Meeting agendas are established by the executive director and chairman, with input from other Council Members.

Minutes: Minutes are mailed to all Council Members, the Labor & Workforce Development Committee, and interested parties.

Decision Rules
Decision-Making Process: Formal decisions are made by an affirmative vote of seven of the voting Members. The Council follows parliamentary procedure. 

Voting Requirements: The Council takes no action pursuant to its authority unless a quorum of voting Members is present. Voting is public, and all votes are recorded in the meeting minutes.

Evaluations: The Council's staff is evaluated annually according to an established personnel rating system.

STAFFING AND RESOURCES

Staffing
The executive director, who is hired by Council Members and reports directly to the Council, handles the daily operations of the Council. The function of the executive director is to ensure that Council Members are provided with accurate and thorough information by which to evaluate the workers' compensation system and advise the governor and legislature. In addition, the executive director organizes Council meetings prepares written reports required by the Council, communicates Council positions to the governor and legislature, and executes directives of the Council. The executive director must advise and prepare all Members to fulfill their duties and responsibilities required by law. The executive director has spending authority and manages the Council staff.

Along with the executive director, there is a team of two researchers responsible for studying various aspects of the workers' compensation system, analyzing data and information, and drafting reports of study findings.

Budget
The Council's expenses, including salary, are funded through the DIA's operating budget. Over the past 4 years, the Council has been has been allocated between $50,000 and $100,000 for studies.

CONTACTS

Massachusetts Workers' Compensation Advisory Council
600 Washington Street
Boston, MA 02111
PHONE: 617-727-4900, ext. 378
FAX: 617-727-7122
WEBSITE: www.mass.gov/wcac

Andrew S. Burton
Executive Director
PHONE: 617-727-4900, ext. 378
FAX: 617-727-7122
EMAIL: andrewb@dia.state.ma.us

Evelyn N. Flanagan
Program Coordinator
PHONE: 617-727-4900, ext. 334
FAX: 617-727-7122
EMAIL: evelynf@dia.state.ma.us