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Michigan PRIMA October 2012 President’s Message The Public Risk Management Association promotes effective risk management in the public interest as an essential component of public administration. Michigan PRIMA USEFUL RESOURCES Stay informed on the latest national and local events. Educational Resources American Institute for CPCU and Insurance Institute of America www.aicpcu.org Lawrence Technological University Professional Development Center Insurance Studies http://ltu.edu/pdc/insurance_studies.asp Davenport University www.cpcusociety.org www.davenport.edu/ipex PRIMA Institute www.primacentral.org Public Entity Risk Institute (PERI) E-Training Center www.riskinstitute.org Risk and Insurance Management Society (RIMS) – Education www.rims.org OTHER USEFUL RESOURCES AM Best Rating Center www.ambest.com/ratings Dept. of Treasury’s Listing of Approved Sureties www.fms.treas.gov/c570/c570.html Michigan Office of Finance and Insurance Services Search Criteria for Insurance Entities www.cis.state.mi.us/fis/ind_srch/ins_ comp/insurance_company/criteria.asp Michigan BWDC Employer Insurance Coverage Inquiry Current Workers Comp Insurance Coverage Lookup www.cis.state.mi.us/bwuc/wkrcomp/asp/ sr_bwdc.asp Risk Management Library www.BetterManagement.com Library and Resource Directory www.IRMI.com And the Year Marches on… Its fall in Western Michigan and in-spite of the dry year we have endured, the trees are reminding me why I have grown to love my adopted home state. It also reminds me of the changing seasons and the changing faces of government. As an organization, we have seen several of our peers enter into the “fall” of their life which has left some large holes to fill. If you are a public entity risk manager and are interested in serving on our committees and/or help shape our future by serving on the board of trustees, please let us know. We have a great Fall Educational Program scheduled for November 8, 2012. Included in this great line-up are two sessions by David Parker. If you are a PRIMAtalker like I am, you will be excited to hear David. David is the former Risk Manager for Puma County Arizona, a national PRIMA board member and a prolific contributor to national PRIMA’s informational sharing blog “PRIMAtalk”. We look forward to seeing everyone in Plymouth. Rick Hensley MIPRIMA President City of Battle Creek Fall Conference November 8, 2012 St. Johns Conference Center, Plymouth, MI

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MichiganPRIMA

October 2012

President’s Message

The Public Risk Management Association promotes effective risk management in the public interest as an essential component of public administration.

MichiganPRIMA

USEFUL RESOURCESStay informed on the latest national and local events.

Educational ResourcesAmerican Institute for CPCU andInsurance Institute of America

www.aicpcu.org

Lawrence Technological UniversityProfessional Development Center

Insurance Studieshttp://ltu.edu/pdc/insurance_studies.asp

Davenport Universitywww.cpcusociety.org

www.davenport.edu/ipex

PRIMA Institutewww.primacentral.org

Public Entity Risk Institute (PERI) E-Training Center

www.riskinstitute.org

Risk and Insurance Management Society (RIMS) – Education

www.rims.org

OTHER USEFUL RESOURCESAM Best Rating Centerwww.ambest.com/ratings

Dept. of Treasury’s Listing ofApproved Sureties

www.fms.treas.gov/c570/c570.html

Michigan Office of Finance and Insurance Services Search Criteria for

Insurance Entitieswww.cis.state.mi.us/fis/ind_srch/ins_comp/insurance_company/criteria.asp

Michigan BWDC Employer Insurance Coverage Inquiry

Current Workers Comp Insurance Coverage Lookup

www.cis.state.mi.us/bwuc/wkrcomp/asp/sr_bwdc.asp

Risk Management Librarywww.BetterManagement.com

Library and Resource Directorywww.IRMI.com

And the Year Marches on…

Its fall in Western Michigan and in-spite of the dry year we have endured, the trees are reminding me why I have grown to love my adopted home state. It also reminds me of the changing seasons and the changing faces of government. As an organization, we have seen several of our peers enter into the “fall” of their life which has left some large holes to fill. If you are a public entity risk manager and are interested in serving on our committees and/or help shape our future by serving on the board of trustees, please let us know.

We have a great Fall Educational Program scheduled for November 8, 2012. Included in this great line-up are two sessions by David Parker. If you are a PRIMAtalker like I am, you will be excited to hear David. David is the former Risk Manager for Puma County Arizona, a national PRIMA board member and a prolific contributor to national PRIMA’s informational sharing blog “PRIMAtalk”.

We look forward to seeing everyone in Plymouth.

Rick HensleyMIPRIMA PresidentCity of Battle Creek

Fall ConferenceNovember 8, 2012

St. Johns Conference Center, Plymouth, MI

2012 MIPRIMA Board of Directors

PresidentRick Hensley

City of Battle Creek269-966-3407 (W)

[email protected]

Vice-PresidentFred Hill

[email protected]

TreasurerPhil VanDyke

[email protected]

SecretaryPaul Van DammeCity of Roseville

586-447-4622 (W)[email protected]

Past PresidentTom Wolff

Michigan Municipal League 734-669-6343 (W)

[email protected]

Board of TrusteesLisa Anderson

Flint Community Schools 810-760-7778

[email protected]

Charlie StevensMMRMA

[email protected]

Craig CoulsonCity of Grand Rapids

[email protected]

Michigan PRIMA 2

Don't be a Stranger!Visit Your MIPRIMA Website

Take advantage of everything the MIPRIMA website has to offer. Click on our corporate sponsor links and educational resources links to locate a variety of professional development events, the latest industry news and other useful information. Visit the website to register for upcoming conferences, to check out the latest job opportunities, and to access the MIPRIMA membership directory and newsletters. And be sure to contact us with any suggestions for improving the website – we welcome your input!

NOMINATION AND ELECTION OF MIPRIMA OFFICERS AND TRUSTEES FOR 2013

Each Public Entity Member shall have the right to vote for the nomination and election of MIPRIMA Officers and Trustees at the Annual Meeting at the fall conference.

President Rick Hensley, City of Battle CreekPast President Tom Wolff, Michigan Municipal LeagueVice President Paul Vandamme, City of RosevilleSecretary Fred Hill, City of EcorseTreasurer Phil Van Dyke, Kent CountyTrustee Lisa Anderson, Flint Community SchoolsTrustee Craig Coulson, City of Grand RapidsTrustee Charlie Stevens, Michigan Municipal Risk Management Association (Mmrma)

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Michigan Public Risk Management Association 2012 Fall Educational Program

Thursday, November 8, 2012

St. Johns Golf & Conference Center • 44045 Five Mile Road • Plymouth, Michigan 48170 • (734) 414-0600

8:00 – 9:00 REGISTRATION & CONTINENTAL BREAKFAST

9:00 – 9:10 Opening remarks Rick Hensley, MIPRIMA

President 9:10 – 10:30 Responding to FOIA Requests

Carlito H. Young and Christopher J. Johnson, Johnson Rosati, LaBarbe, Aseltyne & Field, P.C.

10:30 – 10:40 BREAK 10:40 -- 11:40 Stop Hurting Your Cops!

Reducing Training Injuries David Parker, ARM-P

Public Entity Practice Leader Midwest Employers Casualty Co.

11:40 – 12:40 LUNCH and Luncheon

Speaker: Post-Elections Update -- Emergency Financial Managers Fred Headen, Director, Bureau of Local Government, Department of Treasury, State of Michigan

12:40 – 1:40 Risk Management: Learn to Succeed, to Thrive, and to Empower

David Parker, ARM-P, Public Entity Practice Leader Midwest Employers Casualty

1:40 – 1:50 BREAK 1:50 – 3:00 What You Need to Know

about the Open Meetings Act Haider Kazim and Jeffrey Clark Cummings, McClorey, Davis & Acho, P.L.C.

3:00 NETWORKING RECEPTION

MIPRIMA 2012 Fall Educational Program Registration

Please Return by October 26, 2012 Name_______________________________ Title________________________________ Organization_________________________ Address_____________________________ City_________________________________ State_____ Zip_______ Tel_________________________________E-mail(MANDATORY)__________________ Joining us for lunch? Yes_____ No______ Registration Fee: MIPRIMA Public Entity Member $25 Public Entity Non- Member $50 Non-Public Entity Member $75 Non-Member (Other than a public entity) $150 NOTE: You will be charged if you register but do not attend unless cancellation is received by October 31. Please enclose payment payable to MIPRIMA and return to:

Paul VanDamme MIPRIMA Secretary/

Purchasing Department City of Roseville

29777 Gratiot Avenue Roseville, MI 48066-0290

Phone: 586-447-4622 [email protected]

Michigan PRIMA 4

Summer 2012 MIPRIMA ConferenceCheck out the MIPRIMA Website for a complete listing of the seminar speaker presentation summary documents. Sign into the MIPRIMA Website, under Member Services select Archives and you will be linked to the Education Program Presentations.

• Health Care Reform - State of the Market for Public Employers in Michigan• Importance of Vocational Rehab Due to Michigan WC Statute changes• Legal Considerations in the Use of Social Media• Auto Fleet Management• School Security and Emergency Planning - Trends and Best Practices for a Safer School Year

Angi Magee, Renaldo DeFrank and Diane Maruszewski provided a panel

discussion on the importance of Vocational Rehab in Michigan and

recent changes

Darren Austin and Mike Duboseshared valuable information regarding School Security, Emergency Planning

and Best Practices

MIPRIMA President Rick Hensleyopening remarks by the President to the Summer conference attendees

Judy Thomson-Torosian & Donna Cianciolo

Rick Hensley & Donna Cianciolo addressing the dinner crowd

& handing out prizes

Terry Olejnik Angi Magee, Rick Hensley & Debbie Pingree taking time for a photo

Stacy Belisle & Thomas McGrawPresented "Legal Considerations

in the Use of Social Media"

Paul VanDamme and his Wife with Charlie Stevens and Bill Reisling

"enjoying the evening"

"Auto Fleet Management" presented by Joseph Austin, John Harris

& Rod Pearson

Michigan PRIMA 5

MIPRIMA Past President Tom Wolf with Angi Magee and Debbie Pingree

Leigh Stepaniak & Charlie Stevens

Drew Dunsky

Drew Dunsky & his girlfriend

Joseph Austin, Motor Carrier Officer with the Michigan State Policeaddresses the attendees at the

conference

Keith Friede "State of the Market for Public Employers in Michigan"

Judy Thomson-Torosian is presenting the speaker with a gift

Chad Johnson & Terry Olejnik

MIPRIMA President Rick Hensley & Chad Johnson

Michigan PRIMA 6

Update on Workers’ Compensation in MichiganDenice M. LeVasseur

Workers’ Compensation hearings will no longer be held at the Flint office of the Workers’ Compensation Board of Magistrates, per Mike Zimmer, Chief Deputy Director of MAHS. Notices will be sent to the parties advising of the change in location. Cases that arose in Lapeer County will be transferred to Pontiac and cases that arose in Genesee County will be transferred to Dimondale. The target date for the change is December 2012. There has also been a reduction in staffing levels with a goal of reducing costs. As a result, you may not hear the same friendly voice you are used to hearing when you call one of the offices for help. The new people will be up to speed in short order and I am sure they will be just as pleasant as you have come to expect from the WC Agency staff over the years.

CASE LAW UPDATE

A review of decisions from the Michigan Compensation Appellate Commission issued in the last year produced a few reminders.

EMPLOYERS REMAIN IN CONTROL OF SURVEILLANCE VIDEOS

The plaintiff in Bruntjens v State of Michigan, 2012 ACO #62 made a run at changing the law on the issue of mandatory disclosure of surveillance videos. In Bruntjens, supra, the plaintiff attorney learned of the existence of surveillance video of the plaintiff during a pretrial conference. Plaintiff’s counsel asked the Appellate Commisison to force the employer to let him see the surveillance video prior to trial. The Appellate Commission denied his request. It noted that the traditional forms of discovery in civil courts are not available in workers’ compensation hearings.

THE NOTICE DEFENSE IS NO DEFENSE

The “NOTICE” defense is still no defense as far as Michigan employers are concerned. Employers never win a case on the basis of the employee’s failure to give notice even though the statute requires notice within 90 days of the injury. MCL 418.381.

The employer made another run at the notice defense in Bellor v Bay Metropolitan Transportation Authority, 2012 ACO # 84 but was rebuffed. The Appellate Commission jumped immediately to the part of the statute which forgives the employee’s failure, “[f]ailure to give such notice to the employer shall be excused unless the employer can prove that he or she was prejudiced by the failure to provide such notice.”

Many employers work hard to find a job within restrictions for an employee who has given notice of a work related injury. The employee’s failure to give notice prevents the employer from reducing its workers’ compensation costs in this manner. It is impossible for an employer, months or years later, to prove what job it would have found if the employee had given notice when the injury occurred. Yet, it appears that this is what the Appellate Commission requires. Perhaps specific proof of a specific job that would have been offered to the employee if notice had been given in a timely manner will be sufficient to show prejudice and thereby provide a notice defense to the employer. The Appellate Commission concluded in Bellor that the employer failed to prove prejudice and the employee’s failure to give notice was once again excused.

Denice LeVasseur is an attorney with LeVasseur & LeVasseur, P.C. She represents employers in workers’ compensation claims. She can be reached at 248-356-8600 or [email protected].

The views set forth below are those of the Committee Chairman, Michael Ellis, and do not necessarily reflect the view of his employer, MIPRIMA, or other Legislative Committee members.

Report of the MIPRIMA Legislative Committee

Michigan PRIMA 7

Supreme CourtThe November election will determine control of the Michigan Supreme Court. We are selecting justices for three of the seven seats. Republicans currently have control, but that may not last.

Whatever our personal politics, it is axiomatic that Democratic justices favor plaintiffs and Republican justices favor defendants. As public risk managers, we are usually the defendants. So, as a group, we enjoy periods like that in recent Michigan history – when Republicans controlled a four-three majority in the Michigan Supreme Court and it was harder to sue and win – because it means that fewer suits are ultimately filed. This trend, however, may be coming to an end.

Three of the seven seats are open. Two Republican incumbents are running to retain their seats: Stephen Markman and Brian Zahra. Democratic incumbent Marilyn Kelly is being forced out due to the age provision, which was built into the Michigan constitution back in 1963. The Republicans have nominated Colleen O’Brien, an Oakland County Circuit Court judge, to run for the seat vacated by Marilyn Kelly.

The Democrats have nominated three candidates for the seats on the Michigan Supreme Court. All three are women: Shelia Johnson, Connie Kelley, and Bridget McCormack.

The Democratic Party is running attack ads going after the incumbent Republican justices on the very record that makes public risk managers favor them – according to the ads, they rule in favor of the insurance company 100% of the time.

A recent poll by Michigan Lawyers Weekly magazine showed the Democratic judicial candidates leading by a large margin.

Bridget McCormack is a professor and associate dean at the University of Michigan and head of the Innocence Project. She aggressively sought her party’s nomination before receiving it and is now campaigning with the same zeal.

This is not to say that Johnson and Kelley are not working hard on the campaign trail. Shelia Johnson, an African-American woman, currently serves as District Judge in Southfield. She has run for office before, but not on the statewide level. According to her website biography, she appears to be a remarkable individual.

Connie Kelley is currently a Circuit Court Judge in Wayne County and so she has also previously run for elected office. She comes from a political family: Her husband, Kevin Kelley, was previously supervisor of Redford Township, and Kevin's father is the late Jack Kelley, who was a well-known political player in the Detroit area for years. So neither Johnson nor Kelley is a novice politician.

But McCormack’s family connections are unique. Her younger brother Will is an actor and her brother-in-law is a producer, but the real kicker is her sister: Mary McCormack is a bona fide TV star. Mary currently has the lead in her own series, In Plain Sight. Prior to that, she had a recurring role in The West Wing. What’s more, Mary’s good friend, Chelsea Handler, has her own late night talk show, Chelsea Lately.

This explains how, in August 2012, candidate Bridget McCormack was a guest on Handler’s show. After Handler interviewed McCormack about the Innocence Project’s work freeing innocent people from jail, Handler turned to the audience and said viewers in Michigan should vote for McCormack. This celebrity endorsement was dwarfed by what McCormack managed next, engineering a campaign ad that looks like a public service announcement and stars the cast of The West Wing. In fact, it’s billed on the Internet as a “West Wing Reunion.” Whatever your politics may be, this video is definitely required viewing for all public risk managers.

Michigan PRIMA 8

McCormack has been turning up everywhere in nontraditional campaign imagery. The September 2012 issue of Metro Parent magazine just happens to feature her as a “Metro mom” in an article entitled “Laying Down the Law.”

If the Democratic justices gain control of the Michigan Supreme Court, we can expect a significant change in the court’s decisions. And if past history is any indication, the shift in court philosophy will come swiftly and be significant. If you have not been following this election campaign, now is the time to start, because this is an issue Michigan’s public risk managers ought to watch closely.

Expert Engineers May Replace Juries on Sewer SuitsSenate Bill 1220 was introduced in July 2012 by Senator Tonya Schuitmaker. The intent of Senate Bill 1220 appears to move Sewer Backup claims brought under PA 222 out of the courts and establish an administrative process in which an expert engineer resolves the case brought under PA 222 out of the courts and establish an administrative process in which an expert engineer resolves the case. The bill in part states, “If a governmental agency notified of a claim under subsection (1) and a claimant do not reach an agreement on the amount of compensation for the property damage or physical injury within 45 days after the receipt of notice under this section…the governmental agency shall schedule a hearing to be commenced within 30 days before a neutral hearing officer appointed by the governmental agency who is licensed as a professional engineer under article 20 of the occupational code.”

Public risk managers whose entities are subject to Public Act 222 should follow this bill and consider its ramifications.

FOIA Violations Could Become More ExpensiveHouse Bill 5879 was introduced on September 11, 2012, and increases the penalty for FOIA violations from $500 to $5,000. This seems to set the tone for the bill, which also places a limit on copying charges of “$.10 per page” and clearly states a public body “shall not charge a fee for copying during an on-site inspection unless the requestor requests the public body to provide the copies or the requestor requests and uses the public body’s equipment to make the copies.” A number of other changes are proposed in this bill and few seem to favor the public body. Since the bill’s introduction, there have already been public hearings, and it appears this bill is on a fast track. Any public risk managers who advise a public body regarding FOIA need to review this bill.

Emergency Financial Managers – StatusIt has been the position of the governor and attorney general that, while the ballot referendum suspends Public Act 4 of 2011, it does not negate Public Act 72 of 1990. Thus, there are still emergency financial managers; they simply do not have all the powers they once had under Public Act 4. After the certification of the referendum, the governor swiftly took action to reappoint the emergency financial managers. On the surface, this appeared to solve the problem. Now, however, the Sugar Law Center and the Center for Constitutional Rights have filed a lawsuit in Ingham County Circuit Court arguing that “at this moment, there is no law authorizing the use of emergency managers in the state of Michigan.” This may create a degree of uncertainty for those dealing with emergency financial managers.

The website found at www.legislature.mi.gov is a handy site for tracking Michigan legislation. Its banner reads: “Welcome! A free service of the Michigan Legislative Counsel, the Michigan House of Representatives, and the Michigan Senate.” This site currently has a red notice that states: “The local government fiscal responsibility act, 1990 PA 72, MCL 141.1201 to MCL 141.1291, is reactivated pending the vote of the electors at the November 2012 election.” Apparently, the website has seen enough action on this issue to warrant posting a red letter notice.

It will be interesting to see how the voters deal with this ballot question in November.

Michigan PRIMA 9

Whose Court Is It, Anyway?The question of court control has been a longstanding problem. This control has been “shared” by the State Court Administrator's Office (SCAO) and the local funding units. Recently, at the MAC Annual Conference, a presentation was made proposing that total funding and control of the courts be shifted to the state. The SCAO immediately issued a memorandum clarifying that “this is not an SCAO plan or proposal.”

Be on Notice That Notice is RequiredIn Adkins v SMART, the Michigan Supreme Court upheld a strict reading of the notice provision in MCL 124.419. In this 4-3 opinion, a majority of the court found that neither substantial compliance nor lack of prejudice saved the plaintiff from the notice requirement. By this holding, the court reaffirms its position in Rowland v Washtenaw Road Commission. This trend that notice requirements, as applied to exceptions to the Governmental Tort Liability Act, are to be strictly construed has benefited Michigan public entities. Either the claimant gives notice of all required facts to the proper party within the proper time period or the claimant loses the right to sue. Whether this trend continues, however, is dependent on the outcome of the November election and the composition of the court next year.

Fall ConferenceNovember 8, 2012

St. Johns Conference Center, Plymouth, MI

ProgramChair: Judy Thomson-Torosian

Program Coordinator: Donna CiancoloLeigh Stepaniak

Rick HensleyCharlie Stevens

LegislativeChair: Mike Ellis

Christopher JohnsonT. Joseph Seward

Rick HensleyWilliam Reising

MembershipChair: Tom Wolff

Stephen CooperriderRick Hensley

Paul Van DammeThomas Semaan

Craig CoulsonChris Hathaway

NominatingChair: Leigh StepaniakStephen Cooperrider

Charlie StevensTom Wolff

ScholarshipChair: Rick Hensley

Donna CiancoloMichael Ellis

Chuck SchwabTom Wolff

Leigh StepaniakJudy Thomson-Torosian

NewsletterChair: Cheri Gelnak

Tom WolffFred Hill

Phil Van DykeLisa Anderson

Web Site CommitteeChair: Chris Underwood

Stephen CooperriderRick Hensley

Judy Thomson-Torosian

2012MIPRIMA Committees

Michigan PRIMA 10

2012 Corporate Sponsors

Insurance Companies or Agencies• Coventry, National provider of Field Case Management, Vocational

Services, including, Wage Earning Capacity Evals, Labor Market Surveys, Medical Cost Projections and Life Care Plans. Deborah A. Pingree ASM - Michigan (248) 595-9732

• Gallagher Benefit Services, provides benefit planning services. Mary Beth Bullen (248) 430-2778.

• IBEX Insurance Agency is an all lines independent insurance agency. Keith Potter (248) 538-0470.

• Marsh USA, is the world’s leading risk and insurance service firm. Cheryl Smith (517) 393-6513.

Attorney Firms• Cummings, McClorey, Davis & Acho, P.C. mission is simple -

we must help our clients be successful and improve their bottom line to assist our clients to achieve their business objectives with the least amount of legal risk. Joseph T. Seward, (734) 261-2400.

• Johnson, Rosati, Schultz & Joppich, P.C. is a full service law firm. Chris Johnson (248) 489-4100.

• Lacey & Jones, LLP. The firm’s practice is divided into three practice groups: 1) Workers’ Compensation Litigation, Appeals and Legal Research; 2) Civil Litigation;and 3)Employment Law, Commercial, Litigation and Labor Law. Dawn Drobnich (248) 283-0740.

• LeVasseur & Levasseur. Our mission is to lead our clients through the shark-infested waters of worker’s compensation litigation by defending their asset to the very letter of the law, Denice LeVasseur (248) 356-8600.

• Pedersen, Keenan, King, Washberg & Andrzejak, P.C. is a full service law firm. Diverse defense of personal injury, property, and contract cases. Paul Pedersen (248) 363-6400.

• Plunkett & Cooney, P.C. is Michigan’s leading litigation defense and trial practice law firm. William Reising (810) 342-7001.

Claims, Investigative and Financial Service Companies• CorVel, providing network solutions, case management and bill review.

Lisa Deehan (517) 381-1531.• Citizen’s Management Inc., Third Party Administrator for Workers

Compensation claims. Contact Robert Dewey at 517-546-2160• CompOne Administrators Inc. an FDI Group Company, Third Party

Administrator for Workers Compensation, Long-Term Disability and Short-Term Disability claims adjudication and management. Bruce Stubbs (248)-344-2267

• Humana, a Medicare Carrier with 25 years of Medicare and senior drug plan expertise, meeting the post 65 retiree medical needs. Todd Miller (248) 457-1679.

• Milliman, offers a wide range of insurance and financial consulting services. Their contact is Gary Josephson at 262-796-3305.

• Plante & Moran, PLLC, public accounting and business advisory firm. Terry Olejnik (248) 223-3388.

• ReviewWorks, provider of medical cost containment solutions and disability managment services. Robert Bartlett (248) 848-5100.

• The ASU Group service line includes adjusting, case management, third party administration and medical bill review. Chad Johnson (517) 381-7923.