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Duncan Held Hostage In Rules Committee

Despite accolades from labor and employer representatives, Department of Industrial Relations Director John Duncan is being held in the Senate Rules Committee until he answers some questions about the status of the new permanent disability rating schedule. Sen. Don Perata (D-Oakland), expressed frustration over the fact that studies have been completed showing substantial cuts in benefits, and yet there is still no PD Schedule.

During his confirmation hearing Duncan also fielded questions about State Compensation Insurance Fund, heaping praise on new president Janet Frank, the SCIF Board, and applauding the legislative efforts to reform SCIF. But it was the PDRS that garnered the most attention.

"I'm getting a little impatient. For awhile you feel like you're being a team player then after awhile you feel like a chump. I'm caught between one and the other right now heading toward chumpdom," Perata told the committee.

Duncan told the committee that it's very important to look at the PDRS and make changes as needed, but it's not as easy as one might think.

"It's very important in that particular sense...to make sure this is scientific. It's not easy to adjust certain numbers and percentages. In fact, some of that was part of the problem that was there in the first place," Duncan said, referring to the old schedule.

"We have basically completed the study, and are developing the final recommendations and we'll have a report very, very shortly. And I mean very shortly," Duncan told the committee.

Perata wanted more specifics, expressing frustration that he's not getting the information he needs for his constituents. A new PDRS was promised last fall.

"I have to have more precision...When it's going to happen, what is left to be done..., and what are the next steps to a point where I can tell my constituents 'you know what?' We've now arrived at a solution and beginning this day the payment schedule will be as follows...I need from you answers to those questions because I've been getting kind of hosed," Perata told Duncan.

Duncan was also asked about State Compensation Insurance Fund. The director of DIR is an ex officio member of the State Fund Board.

Duncan said this board was very "passionate about doing the right thing" and being open and transparent. He said DIR is supportive of the legislative proposals including increasing the size of the board.

"Janet Frank is just a spectacular president, comes from the outside. She's very dynamic. I think she needs a management team from [the aspect] of exempt positions," Duncan said.

Sen. Robert Dutton (R-Rancho Cucamonga) relayed that he'd heard State Fund paid almost $20 million in penalties in 2007 for repeatedly delaying and denying medical care. He wondered if the timeliness is improving.

"It definitely will improve and has to improve, and it's one of the very specific issues that Janet has committed to at the board level," Duncan informed the committee.

Perata decided he wanted to hold the confirmation in committee until Duncan answers his PDRS questions. "I'd like you to think about and call my office...and tell me how long you think it will be to give me a report on the questions I asked...If you can't get an answer, that's okay too. That'll tell me a lot."

"I get your message loud and clear and you'll hear from me," Duncan said.

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Workers' Comp Executive, ISSN 1074-0988 Copyright © 2008 Providence Publications, LLC - All Rights Reserved.