SENATE BILL REPORT

SB 6626

BYSenator Smith

Authorizing vocational rehabilitation benefit increases permitted by the supervisor of vocational rehabilitation.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 2, 1988; February 4, 1988

Majority Report:  That Substitute Senate Bill No. 6626 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; Cantu, Conner, McMullen, Saling, Smitherman, Warnke.

Senate Staff:Dave Cheal (786-7576)

                  February 8, 1988

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, FEBRUARY 4, 1988

BACKGROUND:

Vocational rehabilitation costs include a variety of retraining costs such as tuition, fees, books, supplies and equipment, as well as transportation, child care and other related necessary living expenses.  A maximum of $3,000 during any one year period is allowed for all of these costs.  At the discretion of the Supervisor of Industrial Insurance, the maximum 52-week retraining period may be extended for an additional 52 weeks together with an additional maximum $3,000 for all allowable costs.

One of the primary goals of workers' compensation, to return injured workers to continuous gainful employment, is most often achieved when the workers return to their original jobs.  This can sometimes be facilitated by modifying the work environment or providing special tools or equipment.  The Department of Labor and Industries is authorized to pay for job modification costs up to a maximum of $5,000 when it will make it possible for an injured worker to return to his/her job.  This figure was established in 1982.

SUMMARY:

The Supervisor of Industrial Insurance is given discretion to authorize the expenditure of up to $6,000 for allowable vocational rehabilitation benefits during a 52-week period.  It must be determined by the supervisor that the extra expenditure is necessary to implement a particularly meritorious vocational rehabilitation plan. 

The supervisor is given further discretion to authorize up to $9,000 to be spent on behalf of a severely disabled worker who more likely than not will be eligible for a pension award, and in the judgment of the supervisor the additional expenditure will significantly increase the chances of that claimant returning to work.

The maximum amount allowed for job modification costs is increased from $5,000 to $8,000.

EFFECT OF PROPOSED SUBSTITUTE:

The supervisor is given authority to delegate the various additional powers given.  Job modification allowances may be made for any job, not just the old job of the injured worker.  The flexibility in spending amounts over $3,000 during the first 12 months is available for any adopted vocational rehabilitation plan.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 28, 1988

Senate Committee - Testified: Karla Siedschlag, Dept. of Labor and Industries (pro); Sharon Sharp, Sharp Consultation (pro); Gary A. Peterson, (con)