HOUSE BILL REPORT

HB 1470

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported by House Committee On:

Labor & Workforce Development

Title: An act relating to recommendations of the vocational rehabilitation subcommittee for workers' compensation.

Brief Description: Addressing the recommendations of the vocational rehabilitation subcommittee for workers' compensation.

Sponsors: Representatives Ormsby, Manweller, Sells, Reykdal, Fagan, Green, Van De Wege and Condotta; by request of Department of Labor & Industries.

Brief History:

Committee Activity:

Labor & Workforce Development: 2/6/13 [DP].

Brief Summary of Bill

  • Extends the vocational rehabilitation pilot program an additional three years, until June 20, 2016.

HOUSE COMMITTEE ON LABOR & WORKFORCE DEVELOPMENT

Majority Report: Do pass. Signed by 9 members: Representatives Sells, Chair; Reykdal, Vice Chair; Manweller, Ranking Minority Member; Condotta, Assistant Ranking Minority Member; Green, Holy, Moeller, Ormsby and Short.

Staff: Trudes Tango (786-7384).

Background:

One of the primary purposes of the Industrial Insurance Act is to enable injured workers to become employable at gainful employment. The Department of Labor and Industries (Department) pays, or directs self-insurers to pay, the costs of vocational rehabilitation services when these services are necessary and likely to enable the injured worker to become employable at gainful employment.

In 2007 the Legislature enacted Engrossed Substitute Senate Bill 5920, which created a vocational rehabilitation pilot program for vocational rehabilitation plans approved between January 1, 2008 and June 30, 2013. The pilot program is scheduled to end June 30, 2013. Some of the significant provisions of the pilot program include:

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Summary of Bill:

The vocational rehabilitation pilot program is extended through June 30, 2016. The provision requiring the independent review of the program, due in December 2012, is removed.

The Department must submit to the Legislature a final report in December 2015. The requirement that the annual report include the number of workers who have participated in more than one vocational training plan, beginning with plans approved in 2008, is removed.

The sections establishing the program expire June 30, 2016.

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Appropriation: None.

Fiscal Note: Available.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.

Staff Summary of Public Testimony:

(In support) When the original bill passed in 2007, the Legislature's goals were to increase accountability and efficiencies. Since 2007, there have been improvements in those areas. There has been a decrease in the number of workers who have to go through the vocational training process. However, what is not yet known is whether there has been a positive outcome on employment. After the bill passed, the economy took a turn and we experienced the great recession. The next step is to extend this program longer to see if the original bill is doing what it was intended to do. The subcommittee was involved early on in this bill and continues to advise the Department. There is no dissent among the members of the subcommittee. Business members support the bill. There has been a lot of unity and collaboration between business and labor regarding this program. If the program were allowed to sunset, the vocational training amounts would revert back to $4,000, which is inadequate. The program has helped speed the development of vocational plans and that has saved money.

(Opposed) None.

Persons Testifying: Joel Sacks and Vickie Kennedy, Department of Labor and Industries; and Lori Daigle, Sellen Construction, Washington Self-Insurers Association, and Association of Washington Business.

Persons Signed In To Testify But Not Testifying: None.