October 02, 2003
October 2, 2003
Governor Jennifer M. Granholm today submitted Executive Order 2003-18, creating the new Department of Labor and Economic Growth. The action will enable the Governor to move forward on an aggressive, streamlined job creation and economic development program that addresses the business community’s desire for stability and independence in the processing of workers’ compensation appeals.
| Executive Orders |
"This executive order has always been about creating jobs and promoting economic development," said Granholm. "We want a streamlined department that is flexible, saves taxpayer dollars, and will allow us to compete for the jobs of the future."
"The people of Michigan expect us to work together in a bipartisan way, and I am pleased to see the process is moving beyond partisanship and that, together, we are focused on getting the job done," Granholm added. "I thank the Speaker for his willingness to set partisanship aside and engage in conversations that will make state government work better."
The Governor’s action follows the filing of Executive Order 2003-17 which rescinded Executive Order 2003-14 that originally created DLEG. The new executive order preserves accountability, productivity, performance and efficiency standards included in the original order.
As suggested by the Michigan Chamber of Commerce on September 23, DLEG will include a new independent and autonomous Workers’ Compensation Appellate Commission. While the commission will operate in the same manner as the current commission, it will include five members rather than seven, all of whom will be subject to new accountability and performance standards. The appellate commissioners will also be required to meet the tougher eligibility criteria now required of worker’s compensation magistrates.
The executive order allows the new department to consolidate staff functions for the Appellate Commission and Worker’s Compensation Board of Magistrates, reducing the costs associated with overlapping administrative activities. In an additional cost saving measure, the Board of Magistrates will also be reduced from 30 to 26 members.
The Worker’s Compensation Qualifications Advisory Commission (QAC) will be charged with recommending annual reductions or increases in the number of magistrates or appellate commissioners based on case loads and productivity. This preserves the flexibility to meet changes in caseloads and thus better serve citizens. The quorum for the new 10-member QAC will increase from five members to six members to guarantee that QAC cannot act unless both employee and employer representatives participate.
"I am very pleased we are able to preserve the streamlining and centralization of services within DLEG," said Granholm. "Moreover, the new qualifications, productivity standards, performance reviews, and efficiency criteria will make the worker’s compensation system a better organized and more resourceful machine focused on delivering services."
Granholm noted that the new executive order also separates the Michigan Broadband Development Authority and the Michigan Extension Telecommunications Rights-of-Way Oversight (METRO) Authority. While both remain in the DLEG jurisdiction, the separation will ensure independence and autonomy is maintained between the two authorities.
