Annual Update from the
VIRGINIA WORKERS' COMPENSATION COMMISSION
August 2006


Lawrence D. Tarr Commissioner	Virginia R. Diamond Chairman	William L. Dudley, Jr. Commissioner

* * * *

Commission Elects New Chair

At its June 22, 2006, meeting the Commission elected Virginia R. Diamond to serve as Chairman for the three-year term beginning July 1, 2006.

* * * *

Message from Chairman Diamond

It is an honor to serve as Chair of the Virginia Workers' Compensation Commission. We are fortunate to have an outstanding staff dedicated to achieving the mission of our agency. In the face of a growing caseload and increasing complexity of the law, it is our goal to maintain a system that is expeditious, accessible, and as simple as possible.

We are continually working to develop new programs to do our job more effectively. We are currently focusing on expanding our efforts in education and outreach, and upgrading and streamlining our computer information systems. I look forward to working with my colleagues to continue to find ways to improve our administrative operations.

* * * *

Message from Commissioner Tarr

It has been a privilege and pleasure to serve as Chairman of the Workers' Compensation Commission for the past three years. With the help of my colleagues on the Commission and our dedicated staff, we have made many positive changes to the workers' compensation system and the other programs for which the Commission is responsible. There is no higher priority at the Commission than to promptly resolving disputes. With the expansion of our Ombudsman and Mediation programs and the hard work of our claims and judicial staff, Virginia continues to be one the most effective states for claims resolution.

It has been an extraordinary honor to lead an agency that is made up of so many good, kind-hearted staff. I am very grateful for their hard work, loyalty and support. I am also grateful to the employee, employer, and public representatives who work with the Commission to insure that our system remains one of the most fair and efficient in the country. Although my term as Chairman is over, I will continue working with Commissioner Dudley and Commissioner Diamond, our new Chair, so that we can continue to improve a system that has served the Commonwealth and its citizens well for almost 90 years.

* * * *

New Mileage Reimbursement Rate

Effective October 1, 2006, the mileage reimbursement rate is 44.5 cents per mile.

* * * *

New Maximum and Minimum Compensation Rates

The compensation rate is adjusted each year on July 1. Effective July 1, 2006, the maximum rate is $773.00, and the minimum rate is $193.25. The cost of living increase will be 3.45%, effective October 1, 2006.

* * * *

Suggestions

We are interested in receiving suggestions from all parties regarding ways to improve our administrative functions. If you have ideas on ways for us to become more efficient and user-friendly, please e-mail us at suggestions@vwc.state.va.us.

* * * *

Subscribe to Receive Commission Information Updates

We are investigating using an e-mail subscription to provide notice of general information from the Commission, including information about upcoming educational seminars and informational meetings. If you would be interested, please visit our website (www.vwc.state.va.us) and click on "subscribe", or go directly to www.vwc.state.va.us/subscribe and provide your e-mail contact information.

* * * *

Workers' Compensation "Webinar"

Over the past several years the Commission has sponsored a seminar designed to educate claims professionals about the procedures of the Virginia Workers’ Compensation Act. This year, we are offering an alternative model for reaching out to claims professionals. The Commission will sponsor internet-based seminars (“webinars”) that are intended to reach all of the thousands of professionals, no matter where they are located, who work with the Commission in handling Virginia claims. The webinars, available beginning late this fall, will provide technical information from Commission staff concerning a variety of topics, and initially will be tailored to address issues pertinent to claims professionals.

* * * *

Attorneys Meeting

In order to facilitate a dialogue with members of the Bar who interact with the Commission, there will be a meeting for attorneys, tentatively scheduled for March 2007. This will be an opportunity for the Commission to update the attorneys on developments and changes at the agency, and will allow attorneys the chance to ask questions and offer suggestions on how to improve our program.

* * * *

New Hearing Location

Two of the Commission's hearing locations have recently changed. Cases formerly heard in Isle of Wight are now being held at the Workforce Development Center at the Paul D. Camp Community College in Franklin, Virginia. The Franklin Docket considers claims arising in the Cities of Franklin and Suffolk, and the Counties of Isle of Wight, Southampton, Surry and Sussex.

Cases formerly heard in Wytheville are now being held at the New River Community College in Dublin, Virginia. The New River Valley Docket considers claims arising in the Cities of Galax and Radford, and the Counties of Bland, Carrol, Giles, Grayson, Pulaski and Wythe. Directions to these new hearing locations can be found under the “About the Commission” link at our website: www.vwc.state.va.us.

* * * *

Foreign Language Interpreters

The Commission now provides interpreters at its expense when requested for non-English speaking parties and witnesses for evidentiary hearings. In lieu of a Commission-provided interpreter, parties independently may obtain and use the services of a qualified interpreter of their own choosing and at their own expense. Such interpreters need not be certified by the Supreme Court of Virginia, but must be competent to serve.

Parties and counsel who desire a Commission-appointed interpreter should notify the office of the Deputy Commissioner to whom the case is assigned of the need for the interpreter as soon as possible, but in any case at least 30 days prior to the scheduled hearing date.

Commission-provided interpreters are not considered witnesses in the proceedings, but rather Commission contractors. It is within the Deputy Commissioner's discretion whether to permit voir dire of any interpreter, whether or not provided by the Commission, in the event that a party questions the competence or neutrality of that interpreter. It is also within the Deputy Commissioner's discretion whether to allow continuances of hearings where an interpreter is needed but not requested in sufficient time to allow one to be scheduled.

* * * *

Commission's Mediation Program and Ombudsmans Office

The Commission offers free mediation services to help resolve disputes quickly. Many issues can be resolved through this confidential and informal process, hence eliminating the need for a hearing. Mediation is a cost-effective way to resolve specific issues or claims in a timely manner.

During the last five years, over 1000 mediations have been conducted by the Commission’s trained mediators with an overall resolution rate of 80 percent. Mediation can be conducted by telephonic conference or in person. Mediations are conducted in various locations throughout the state, including Abingdon, Alexandria, Dublin, Harrisonburg, Manassas, Richmond, Roanoke, and Virginia Beach. To view the Mediation Docket for the dates a mediator is scheduled in your area, visit the Ombudsman's Office and Mediation Program website page (http://www.vwc.state.va.us/ombud.htm).

Using informal dispute resolution techniques, the majority (77 percent) of disputes prompting mediation requests and Commission referrals are resolved by the Ombudsman's office. By facilitating the exchange of information and communication between the parties, the staff of the Ombudsman's office has resolved over 6000 issues or disputes. For assistance in resolving a dispute or to request mediation, contact the Ombudsman's office 1-877-664-2566.

* * * *

Opinions by E-Mail

The Commission continues to provide by e-mail copies of its review opinions and opinions of the Virginia Court of Appeals and Supreme Court as they are issued. The Commission has two ways by which anyone wishing to receive review opinions can do so by e-mail. The daily list includes the VWC Reviews and Opinions from the Court of Appeals and Supreme Court of Virginia for that day. The monthly list contains only the VWC Reviews issued or updated during that month. To subscribe, please visit our website at www.vwc.state.va.us/subscribe.

* * * *

Electronic Data Handling at the Commission

The Commission continues its initiative to design and improve its electronic data handling systems. Presently, our system accepts electronic filing of the Claim for Benefits (VWC Form No. 5), filed by injured workers, and allows web-based and batch electronic filing of reports of accidents and medical costs, including the Employer Accident Report (VWC Form No. 3), the Report of Medical Costs (VWC Form No. 45-G), and the Minor Injury Report (VWC Form No. 45-A). All electronic filing applications can be accessed from the Electronic Filing Services link at our website: www.vwc.state.va.us.

* * * *

2006 Act Annotated

The Virginia Workers’ Compensation Act Annotated, 2006 Edition, containing the text of the Act as well as case notes and rules from the Supreme Court of Virginia, the Court of Appeals of Virginia, and the Commission is now available at the Commission’s central office in Richmond for $28.00 or by mail for $31.00. Please refer to http://www.vwc.state.va.us/publications.htm for further information, or contact the Commission at (877) 664-2566 and ask for the Comptroller's Office.

* * * *

News from CICF

In its efforts to improve services to crime victims, the Virginia Criminal Injuries Compensation Fund has completed a number of initiatives outlined in its strategic plan. This includes moving the office to 2201 West Broad Street, Richmond, Virginia. This new location is more accessible for claimants and offers space for them to obtain confidential staff assistance. As part of its strategic plan, CICF also updated its phone system, so that all callers can be assisted more quickly and efficiently.

The Fund launched a comprehensive outreach effort that targets first responders and victim service agencies, so that all eligible crime victims in the Commonwealth receive information about CI'CF. In the last year, over 700 professionals received CICF training, and applications to the Fund have increased as a result. CICF also planned and implemented two regional trainings for medical providers in partnership with the Virginia Department of Health. As part of this outreach campaign, all public awareness materials have been revised, and the CICF application has been simplified.

CICF expands on its service to victims of crime through its activities with the Virginia Department of Criminal Justice Services, the Virginia Victim Witness Network, and the National Association of Crime Victims Compensation Boards. Through these combined efforts: statewide restitution collection methods are being examined, plans to enhance Victim’s Rights Week are being made, and congressional leaders are made aware of the importance of maintaining federal Victim of Crime Act monies in service of crime victims.

More information about the Fund and its activities can be located in the CICF Annual Report that is published by September of each year, or by visiting www.cicf.state.va.us.

* * * *

2006 Workers' Compensation Act Legislative Update

Section 65.2-101
House Bill 326 amended the definition of "employee" to include the sole shareholder of a corporation with one shareholder and the sole member of a limited liability company with one member, if the individuals elect to be included as employees under the workers' compensation coverage of the business. The same election is currently afforded to sole proprietors and to all of the partners of a business.

Section 65.2-200
House Bill 432 changed the timing of the election of members of the Workers' Compensation Commission, so that members do not have to be elected by February 1st, but would begin their term that would start whenever they are elected as is the case for judges elected by the General Assembly.

Section 65.2-502
House Bill 865 added rules for calculating certain employees, temporary partial disability benefits. In calculating post-injury average weekly wages based on income earned by commissioned employees, self-employed income, and income derived from an employer in which the injured worker or their immediate family has an ownership interest, if the period of partial disability is thirteen weeks or less, post-injury average weekly wages are based on earnings over the entire period of partial disability. If the period of partial disability is longer than thirteen weeks, the average will be calculated quarterly, provided that if the period of disability ends before the end of a thirteen-week interval, the calculation for the final interval shall be as if the period of partial disability were for less than thirteen weeks. The Bill added that for all other employments the Commission has discretion to use either the thirteen-week formula or a week-to-week calculation.

Section 65.2-801
House Bill 941 corrected the statement of the minimum ratio of debt to equity that an employer is required to demonstrate prior to obtaining certification as a self-insurer. The minimum ratio was previously codified as 2:2, and the 1996 Acts of Assembly stated the ratio as 2.2; this amendment restated the ratio as 2.2:1.

* * * *

Other 2006 Legislative Changes Affecting the Commission

Sections 19.2-368.5, -368.20, & -368.21
House Bill 617 amended the Compensating Victims of Crime Act, administered by the Commission, to provide that profits from crime be subject to a special order of escrow, with the profits going to the victim. If there is money remaining after a judgment in favor of the victim is paid, or if there is no judgment in favor of a victim, 25% of the defendant's legal fees paid by the Commonwealth may be reimbursed to the Commonwealth and the defendant's fines and costs may be paid. Any money remaining will be paid into the Literary Fund. Because Article VIII, Section 8 of the Virginia Constitution requires forfeited assets, other than those involved in the distribution of illegal drugs, to be deposited into the Literary Fund, under prior law the money could not be paid into the Criminal Injuries Compensation Fund.

Sections 38.2-5016 & -5016.1
House Bill 417 amended certain provisions of the Virginia Birth-Related Neurological Injury Compensation Act, claims under which are heard before the Workers' Compensation Commission. The amendments eliminated requirements that the investment advisors retained by the board of directors of the Birth-Related Neurological Injury Program be from a list provided by the chief investment officer of the Virginia Retirement System and that the board consult with the chief investment officer regarding its investments. Any investment advisor retained by the board will be required to either be a federal covered investment advisor or registered with the State Corporation Commission under the Securities Act.

Sections 38.2-5010 & -5013
Senate Bill 632 amended the Birth-Related Neurological Injury Compensation Act to allow for an opportunity for a second review by the Commission in the case of any child born between January 1, 1988, and July 1, 1993, if such application for review is filed by July 1, 2007. The review may only occur in those cases where the claim was timely filed and dismissed on the basis of the injury not being caused by a deprivation of oxygen or mechanical injury.

Sections 59.1-475 & -477.1
House Bill 942 exempted all settlements of workers' compensation benefit payments from the provisions of the Structured Settlement Protection Act.


	\|\|\| \|