LANSING (AP) - A Republican state representative said yesterday he will introduce a resolution to reject Gov. Jennifer Granholm's executive order creating a new economic development department.

Rep. Clark Bisbee of Jackson said he has a few problems with the new state Department of Labor and Economic Growth. He sited specific concerns with the proposed restructuring of the workers' compensation appeals process.

The reorganization would eliminate the Worker's Compensation Appellate Commission board and transfer its powers to a two-member panel of appellate magistrates. If the two magistrates don't agree on a case, the tiebreaker is the chairman of the Board of Magistrates, who is appointed by the governor.

The Michigan Chamber of Commerce said the change would favor labor by leaving difficult appeals decisions to an appointee of a Democratic governor.

"Uncertainty with regard to workers' compensation is definitely our main problem with this order," Bisbee said in a news release. "We need to have an honest debate to ensure the new plan will not hurt workers and restrict job growth."

David Hollister, head of the new department, said the change reflects a drop in the number of workers' compensation appeals cases in recent years. The change would save the state about $1.2 million, he said.

"It would be unfortunate if the Legislature took one small piece of that and vetoed our economic development effort," Hollister said last week.

Granholm said the current workers' compensation appeals process is inefficient.

She signed the order on Wednesday. It takes effect unless the executive order is rejected by the state Legislature within 60 days.

Senate Majority Leader Ken Sikkema (R-Wyoming) expressed concerns similar to Bisbee's about the executive order. He said the Senate would reject the order.

Bisbee's House Commerce Committee was scheduled to have its second hearing on the order at 10:30 a.m. today.