N.D. Governor Coy about Support for Workers’ Comp Initiative

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Gov. John Hoeven favors a proposed initiative that would give him power to hire North Dakota’s workers compensation director, but he won’t say whether he’ll campaign for the measure if it qualifies for the ballot next year.

“I do view that as a right of the people, and it’s up to the people to take it forward,” Hoeven said. “I’ve said that I support bringing (the workers’ compensation agency) under the governor, and that’s how I will approach it.”

Jean Wanner, who is chairwoman of an initiative campaign that would put the governor back in charge of the Workforce Safety and Insurance agency, said more than 150 petitions are being circulated statewide to gather the 12,844 signatures needed to put the measure on the 2008 ballot.

The proposal would give the governor authority to hire WSI’s chief executive, power that now is the responsibility of an appointed 11-member board.

The measure would require that appeals from agency decisions be handled by independent administrative law judges rather than reviewers who work for WSI, and would put agency workers back into North Dakota’s state government personnel system.

The system gives workers some protections against being fired and regulates how pay raises are given. At present, agency workers do not have civil service protection.

A decade ago, the Legislature stripped the governor of his authority to hire the state’s workers compensation director and gave it to an appointed board. Supporters of the move said it would help insulate the agency from political pressures.

The North Dakota Chamber of Commerce, which lobbied for the 1997 law that changed how WSI’s chief executive is hired, is opposing the initiative.

Workforce Safety and Insurance has come under increased scrutiny because of management problems, including three felony charges that were filed against Sandy Blunt, its chief executive officer. The charges were later dismissed.

Five WSI officials have asked for “whistleblower” protection against retaliation on the job for disclosing alleged misconduct and abuse of public resources at the agency.

One employee, Kay Grinsteinner, the internal audit manager, said in an e-mail that WSI has been denying injured workers’ claims with more frequency. “This is our dirty little secret on how we’re really treating injured workers,” she said in an e-mail to a state auditor.

Wanner said WSI’s troubles demonstrate the need to restore accountability to that agency. “North Dakota cannot afford a state agency that is so obviously out of control,” she said.

Although Hoeven has said he wants to restore the governor’s authority over the workers compensation agency, backers of the idea say his support for it has been lacking. During the 2007 Legislature, Hoeven stayed out of public debates over legislation that would have given him power to hire the WSI director. It was defeated.

Asked if he intended to campaign for the initiated measure if it is on the ballot next year, Hoeven said he believes it is “up to the people to take this forward.”

“I see this as a right of the people, which I support and respect,” Hoeven said. “I express my personal position … so people know where I stand.”

North Dakota’s recent governors have handled their public stands on ballot measures differently.

Former Republican Gov. Ed Schafer usually did not get involved in debates on statewide measures, regardless of whether they were put on the ballot by the Legislature or by citizen petitions.