CALIF. COMMISSIONER MEETS WITH GOV. ELECT-SCHWARZENEGGER:

Focusing the spotlight on solutions to California’s economic problems, State Insurance Commissioner John Garamendi urged Governor-elect Arnold Schwarzenegger to convene a special session of the legislature on workers’ compensation when he takes office this month. Garamendi met with Schwarzenegger recently at the Department of Insurance, where the two discussed various issues, chief among them workers’ compensation. The Commissioner also proposed holding a Summit on Workers’ Compensation to seek more expert input on the serious problems plaguing the $29 billion system. Garamendi has worked since taking office in January to reform the system. “Our economy cannot recover unless more jobs are created to stimulate the state’s revenue stream,” Garamendi said. “Businesses cannot create jobs when they are burdened with the enormous weight of this dysfunctional system. The Governor-elect and I are in very close agreement on that.” Garamendi recently launched the second stage of his workers’ comp reform effort. During this phase he will direct the Department to tackle the highly subjective and unfair permanent disability rating system; reinvigorate efforts to combat fraud; work to institute 24-hour care as a health care substitute for multiple coverages already provided by employers; and work to reform the State Compensation Insurance Fund.