Senate committee advances WSI clarifications, raises survivor benefit cap in SB 2109

Senate Industry and Business Committee members voted to accept an amendment and give a due-pass recommendation to Senate Bill 2109, a Workforce Safety and Insurance package that would add definitions, allow electronic service of notices in the dispute process, and increase benefit and scholarship caps.

The bill responds to a recent state Supreme Court decision that invalidated an administrative rule WSI used to limit compensability for some mental and psychological conditions. Sponsors and WSI told the committee the measure would put the clarifying language into statute, align related appeal filing language, and modernize notice procedures by allowing recipients to opt in to electronic service.

WSI representative Tim Wallin testified the changes are intended to make the statutory language consistent with longstanding WSI practice and with a separate reapplication provision already codified elsewhere in statute. “Adding the proposed language to the definition of disability, which requires actual earnings be lost as a result of the work injury, will rectify an otherwise absurd result,” Wallin said. He also described a multi‑year IT modernization effort and said the bill adds the defined term electronic means so WSI may provide dispute decisions electronically once recipients opt in and the system is ready.

The bill’s substantive provisions described to the committee include: - Definition/compensability: Inserting a clarification into the statutory definition of disability to focus on actual lost earnings rather than loss of earnings capacity, the language WSI previously enforced through administrative rule. Committee discussion framed this change as a legislative response to Riley v. WSI, a recent North Dakota Supreme Court decision that invalidated WSI’s administrative rule interpretation. - Electronic service: Adding a statutory definition of “electronic means” and granting WSI discretion to send notices and decisions by regular mail or electronic means when a recipient opts in; WSI would electronically track receipt and confirmation. - Appeal-filing consistency: Making appeal‑filing rules consistent across related subsections by clarifying that an appeal is filed only when received by WSI. - Survivor indemnity benefits: Raising the statutory cap on survivor indemnity benefits from $300,000 to $400,000 and providing for automatic $10,000 increases every odd‑numbered year going forward. - Scholarships: Increasing the annual maximum scholarship payment to covered dependents or retrained injured workers from $10,000 to $12,500.

Committee members raised practical questions about the electronic-notice provision, including how WSI would verify receipt and how opt‑in would work. Wallin said the opt‑in model requires the injured worker or employer to indicate they want electronic communication; WSI expects tracking and confirmation capabilities but acknowledged that some disputes over whether a notice was received will still occur, as they do with regular mail.

Several senators also asked about retroactivity. Wallin said the bill would not retroactively change benefits already awarded; it would apply to claims decided after the bill’s effective date, though WSI requested a technical tweak to effective dates if the amendment is adopted to ensure the mental-condition clarifying language applies consistently.

Eric Spencer, president and CEO of the Greater North Dakota Chamber, testified in support and said stakeholders had been consulted. He told the committee the state’s workers’ compensation system compares favorably with other states and that clarifying the statute would reduce litigation and inconsistent administration.

The committee voted to adopt the amendment (roll call recorded as Aye by Senators Klein, Kessel, Chairman Barta, Vice Chairman Behm and others present) and then voted to give SB 2109 a due‑pass recommendation as amended. The amendment sponsors said they would confirm effective dates and minor drafting tweaks before the bill moves forward.

WSI emphasized the measure is intended to restore clarity after the Supreme Court invalidated an administrative rule and to modernize communications and benefit levels without altering longstanding substantive policy beyond the clarifications described.