The Workmen's Compensation System and the Industrial Commission of Virginia were created by an act of the 1918 General Assembly. The Act has not been comprehensively studied or reviewed since then despite the enactment of federal laws which might affect it, despite the growth in population which could have multiplied the work of the Commission, and despite the fact that some provisions may be unfair, unnecessary or unworkable in actual practice. The 1966 General Assembly felt it appropriate to study the operations of the Industrial Commission and the Workmen's Compensation Act to ascertain what revisions in the Act should be made.

Accordingly, the 1966 General Assembly by Senate Joint Resolution No. 61 directed the Virginia Advisory Legislative Council to study and report on matters pertinent to the Industrial Commission of Virginia and the Workmen's compensation Laws of Virginia.

Selected by the Council to serve on the Committee to prepare an initial report were: Delegate John H. Daniel; Senator Fred W. Bateman; John B. Boatwright, Jr., Chairman, Virginia Railway Association, Richmond; John E. Donaldson, Jr., Attorney at Law, Arlington; Delegate Walther B. Fidler; Delegate George H. Hill; James N. Hunter, Vice-President, Natural Bridge of Virginia, Inc., Natural Bridge;. Brewster Snow, Secretary-Treasurer, Virginia State AFL-CIO, Richmond; Delegate Robert W. Spessard; Beecher E. Stallard, Attorney at Law and former Member of the House of Delegates, Richmond; Senator William F. Stone; Charles H. Taylor, Executive Vice-President, Virginia Manufacturers Association, Richmond; Charles F. Unruh, former Member of the House of Delegates, Kinsale. Delegate John H. Daniel was elected Chairman of the Committee.

The Committee began its work by acquainting itself with the present organization and operation of the Industrial Commission. It conducted a public hearing and elicited recommendations from groups representing workmen, the insurance industry, employers, the general public, and the Commissioners of the Industrial Commission.

Based upon the recommendations presented at the public hearing, the Committee determined to engage the services of consultants to gather data in the following areas: a managerial analysis of the operation of the Industrial Commission; a cost analysis of the Virginia Workmen's Compensation Laws as compared with other states of like geographical, industrial and population composition; a cost analysis of states operating under an exclusive state monopoly fund; the impact of 1965 Social Security amendments and the proposed 1967 amendments; and projected cost analyses for various increased levels of benefits. Accordingly, the actuarial firm of Woodward and Fondiller, Inc. of New York and the Institute for Business and Community Development of Richmond were engaged. to gather the factual information the Committee desired.

Because of the complexity of the assignment undertaken by the two consultant firms and because the final 1967 amendments to the federal Social Security Act were not available, the Committee and Council were of the opinion that additional review of the material presented by the consultant and of the federal law would be necessary for the formulation of sound recommendations and accordingly requested that the study be continued.

Thus the 1968 Session of the General Assembly of Virginia, by House Joint Resolution No. 38, directed the Virginia Advisory Legislative Council to continue its study of the Industrial Commission and the Workmen's Compensation Act.

The Council initially selected John H. Daniel, Charlotte Court House, member of the House of Delegates and member of Council, to be Chairman of the Committee to continue this study and report to the Council. Selected to serve with Mr. Daniel were: Edgar Bacon, Jonesville, member of the House of Delegates; John B. Boatwright, Jr., Richmond, Chairman of the Virginia Railway Association; John E. Donaldson, Jr., Arlington, Attorney at Law; George Hedgepeth, Franklin, Assistant Manager of the St. Regis Paper Company; James N. Hunter , Natural Bridge, Vice-President of Natural Bridge of Virginia, Inc.; Flournoy L. Largent, Jr., Winchester, member of the House of Delegates; Brewster Snow, Richmond, Secretary-Treasurer of the Virginia State AFL-CIO; Beecher E. Stallard, Richmond, former member of the House of Delegates; William F. Stone, Martinsville, member of the Senate; Charles H. Taylor, Richmond, Executive Vice-President of the Virginia Manufacturers' Association, Inc.

Upon the resignation of Mr. Daniel from the Council, it selected Edward E. Lane, Richmond, member of the House of Delegates and member of Council, to be Chairman of the Committee.

The actuarial firm of Woodward and Fondiller, Inc., provided a comparative analysis of workmen's compensation benefit financing which indicated how insurance rates are developed in Virginia for each of the job classifications based on experience and risk exposure.

The Institute for Business and Community Development of the University of Richmond provided its findings related to the administrative functions of the Industrial Commission, the growing development of a system of federal disability benefit payments under the Social Security Act, and a comparative analysis of State monopoly fund financing of workmen's compensation benefits versus the present system of financing through private insurance carriers and self-insurance.

From these reports and interrogations of the consultants, we observed that:

(1) Some improvements could be made in the administration of the Workmen's Compensation Act of Virginia.

(2) Some improvements should be made in the statutory provisions of the Virginia Act.

(3) There would be no apparent advantages in changing the present system of financing workmen's compensation benefits.

(4) The development of a system of federal disability payments, either through the Social Security Act or through federal workmen's compensation legislation establishing federal disability benefit payments, can have substantial implications for the future role of state workmen's compensation disability benefit payments.