NU Online News Service, Jan.15, 3:21 p.m. EST

NEWARK, N.J.–State legislatures around the nation will likely not enact any major reforms to their workers' compensation laws this year, an insurer's representative predicted at an industry conference.

With lawmakers focused on budget holes, comp issues will "remain on the back burner," forecasted Clifford G. Leach, The Hartford Financial Services Group vice president, government affairs and assistant general counsel.

Mr. Leach gave his assessment as one of the speakers addressing the Workers Compensation Research Institute Annual Issues & Research Conference that was telecast to cities throughout the nation this week.

Because of budget restrictions brought on by the economy that will take the focus from comp laws, states won't move on and cannot afford benefit increases, but will probably not act on new cost containment measures either, he said.

In Mr. Leach's view, serious comp reform would not take place even if there were no economic downturn, because, as he explained, "it takes a crisis in the [workers' comp insurance] market to move legislation."

The normal process in state houses when faced with a legislative challenge is "you usually kick the can down the road until you can't ignore it. Absent a crisis, you won't get very far," he related.

Recapping state legislative action in 2009, Mr. Leach noted that Florida had reenacted caps to workers' compensation attorneys' fees that were overturned, but there was no movement on comp legislation in California, New York and Texas. He noted that the Northeast states of Connecticut, Pennsylvania, New Jersey and Massachusetts have generally more stable comp systems.

In the coming year, he mentioned that the Texas legislature is not in session and there may be impacts from state elections in California, Connecticut, New York and Massachusetts.

In California, he said Republican Gov. Arnold Schwarzenegger cannot seek reelection because of term limits and Democratic State Attorney General Jerry Brown, a former governor, will likely be his party's nominee for governor and has a good chance of being elected.

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