HOUSE BILL REPORT

HB 1118

BYRepresentatives Vekich, Wolfe, R. King, Prentice, Sayan, Winsley and P. King; by request of  Department of Labor and Industries

Changing provisions relating to vocational rehabilitation.

House Committe on Commerce & Labor

Majority Report:  Do pass.  (7)

      Signed by Representatives Vekich, Chair; Cole, Vice Chair; Jones, R. King, Leonard, Prentice and Walker.

Minority Report:  Do not pass.  (3)

      Signed by Representatives Patrick, Ranking Republican Member; Smith and Wolfe.

House Staff:Chris Cordes (786-7117)

AS PASSED HOUSE MARCH 15, 1989

BACKGROUND:

Vocational rehabilitation benefits under the industrial insurance law are limited to $3,000 for an injured worker in any year.  In the sole discretion of the supervisor of industrial insurance, an additional amount, up to $3,000, may be authorized for a second year of vocational rehabilitation services.

The Office of Financial Management conducts an annual performance audit of the industrial insurance vocational rehabilitation program.

SUMMARY:

An exception to the $3,000 annual monetary limit on industrial insurance vocational rehabilitation services is created to allow the supervisor of industrial insurance to spend up to $6,000 in a one year period.  The supervisor's investigation must reveal that the plan cannot be reasonably implemented within the usual monetary limit.  Costs may not exceed $6,000 for any injured worker, except for a worker who more likely than not would be eligible for a workers' compensation pension.  For these workers, the supervisor may authorize up to $9,000 for vocational rehabilitation, if the additional expenditure will significantly enhance the likelihood of returning the worker to gainful employment.

The annual performance audit of the industrial insurance vocational rehabilitation program will be conducted by the Department of Labor and Industries rather than the Office of Financial Management.

Fiscal Note:      Available.

House Committee ‑ Testified For:    Bob McCallister and Chuck Holmquist, Department of Labor and Industries;  Jeff Johnson, Washington State Labor Council (with concerns).

House Committee - Testified Against:      Clif Finch, Association of Washington Business; Dwight Thompson, Rehabilitation Evaluation Services.

House Committee - Testimony For:    The Department of Labor and Industries needs the discretion to spend the maximum allowable amount for vocational rehabilitation costs in one year when an intensive program will get the injured worker back to work quicker.

House Committee - Testimony Against:      The department should not be authorized to spend a higher annual amount for vocational rehabilitation until the program proves that it is successful.