Contact: State Rep. Mark McCullough
Capitol: (405) 557-7414

OKLAHOMA CITY (November 17, 2009) – State Rep. Mark McCullough will file legislation to overhaul Oklahoma’s workers’ compensation system to increase benefits for the injured while also driving down costs for employers.

"This is a very serious effort to restructure our system that has been designed with the input of numerous experts over several months," said McCullough, a Sapulpa Republican who is also an attorney. "Oklahoma’s current workers compensation system fails both injured employees and their employers and actively discourages economic growth. It’s time to make a significant change."

Although many people devoted hundreds of man-hours to developing the proposal, McCullough highlighted two in particular for their work: state Rep. Lewis Moore and Mike Seney, senior vice president of Operations for The State Chamber.

"Without Mike’s leadership, this would not have been possible and Representative Moore, as a freshman legislator, really stepped up to bring his expertise in risk management to the table," McCullough said.

"In light of the national recession and state budget cuts, it is more important than ever to create a climate for business and job growth in Oklahoma," said Moore, R-Edmond. "Workers comp reform has to be a cornerstone of that effort."

"The State Chamber believes Oklahoma needs to completely restructure our workers’ compensation system," Seney said. "Our employers are paying too much and our employees are waiting far too long to receive the medical treatment they need and the benefits they deserve."

The legislation would keep the current, often-criticized Workers’ Compensation Court for existing claims, eventually phasing out the court as all current cases are resolved. The number of judges would be reduced from 10 to four and the court would only handle cases filed before the effective date of the proposed law. All judges would be gubernatorial appointees subject to Senate confirmation and all would be required to have at least five years of experience in workers compensation issues in Oklahoma.

McCullough noted a 2010 state question authored by state Rep. Dan Sullivan (R-Tulsa) will also allow voters to require Senate confirmation of the judicial positions.

The central reform of the bill creates a three-member "Workers’ Compensation Commission" to run Oklahoma’s workers’ compensation system for all claims filed after the bill’s effective date. The three members would include one attorney, one physician and one industry professional. Each must have five years experience in Oklahoma workers’ compensation issues

The commission members would be gubernatorial appointees subject to Senate confirmation and reviewed for reconfirmation every four years.

"Why would lawyers be the only people given authority over our workers’ compensation system when doctors, employers and other industry professionals are also involved?" McCullough said.

The three-member commission would oversee an administrative law judge (ALJ) system. Each ALJ, who would be hired by the commission, would be assigned to handle cases in specific counties (one each in four regional quadrants and two each in Oklahoma City and Tulsa). The bill would also establish a chief medical officer under the oversight of the commission who would be charged with medical evaluation of worker injuries.

"Taking the medical component out of the courtroom and back into the doctor’s office is a key component of this legislation," McCullough said. "By separating the legal and the medical, we can reduce the adversarial nature of the process, get people treated and back to work, and reduce costs for employers. This reform will ensure medical ratings are handled in a professional, independent fashion and drain the fever swamps of litigation."

Under the legislation, all hearings would be recorded and made public.

To maximize worker benefits, the bill enacts a value-added clause for attorney fees. If a settlement offer is rejected and a claim taken to trial, the attorney’s fees would be taken only from the amount won in excess of the initial rejected settlement offer.

"This provision will reduce the incentive for attorneys to needlessly litigate when a legitimate settlement claim has been put forth," McCullough said.

In addition, the bill would make it illegal for attorneys to withhold a portion of a worker’s settlement to use for political contributions.

"Unfortunately, there have been reported cases where lawyers skimmed money from their clients to fund the campaigns of political patrons," McCullough said. "That’s not right. If an employee wants to contribute to a political campaign, that is his or her personal decision and they should not be unwittingly funding campaigns as part of a settlement agreement."

A similar campaign funding proposal was authored by state Rep. Dan Sullivan during the 2009 session.

"Several of Representative Sullivan’s ideas have been folded into this bill because we want every good idea we can find in this omnibus measure," McCullough said. "There’s no point in reinventing the wheel."

McCullough has been studying workers compensation issues for over two years and his legislation was drafted over nine months with input from a working group of diverse individuals and experts that included doctors, chiropractors, insurance company executives, legislators, business leaders, small business owners, certified workplace medical plan managers, former Workers’ Compensation judges…and even a workers’ compensation lawyer.

"I realize this proposal may be just one of many workers compensation reforms that will be considered in the next legislative session," McCullough said. "This bill is aimed at providing turnkey legislation on an administrative system should lawmakers desire to go that direction. Obviously, I am an advocate of the working group’s efforts, but I also understand the importance of gaining consensus from as many parties as possible so that we can truly craft