SENATE BILL REPORT

HB 2362

BYRepresentatives R. King, Smith, Prentice, Walker, Vekich, Cole, Jones, Wang, Leonard, Basich, Rector, Winsley and Wolfe

Providing incentives for state agencies and institutions of higher education to participate in industrial insurance safety programs and return-to-work programs.

House Committe on Commerce & Labor

Rereferred House Committee on Appropriations

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 19, 1990; February 23, 1990

Majority Report:  Do pass.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; McDonald, McMullen, Matson, Murray, Smitherman, Williams.

Senate Staff:Dave Cheal (786-7576)

                  February 23, 1990

Senate Committee on Ways & Means

Senate Hearing Date(s):February 26, 1990

Majority Report:  Do pass.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Bailey, Bauer, Bluechel, Cantu, Gaspard, Hayner, Johnson, Lee, Moore, Newhouse, Niemi, Saling, Smith, Warnke, Wojahn.

Senate Staff:Susanne Windels (786-7715)

                  February 28, 1990

AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 26, 1990

BACKGROUND:

Under the industrial insurance law, state agencies and institutions of higher education may participate in retrospective rating programs that pay premium refunds if the agency reduces its claim experience during the retrospective plan period.  State law does not allow agencies or institutions to retain these premiums between fiscal periods.

The retrospective rating program also provides these agencies with assistance in creating effective safety programs and better claims management.  As part of these loss control programs, several state agencies have adopted or are considering programs that provide return-to-work opportunities for employees who are capable of light or modified duty during the period in which the employee is recovering from the industrial injury.  Return-to-work programs are not mandated by state law.

SUMMARY:

Industrial insurance refunds earned by state agencies and institutions of higher education from the retrospective rating program will be deposited in the industrial insurance premium refund account.  Funds from the account may be appropriated to the participating agencies or institutions for programs within the agencies, with preference being given to programs that promote employee safety and early, appropriate return-to-work for injured employees.  No agency or institution may receive an appropriation greater than the amount earned by the agency as a premium refund.

The State Board of Personnel and the Higher Education Personnel Board are directed to adopt rules establishing employee return-to-work programs and requiring each state agency or institution to adopt a return-to-work policy.  The programs will provide eligibility for two years for any permanent employee who is receiving industrial insurance temporary total disability compensation and who is unable to return to his or her previous work, but is physically capable of carrying out work of a lighter or modified nature.  The boards' rules must also (1) allow opportunity for statewide return-to-work when an appropriate light duty job is not available in the appointing agency; (2) require each agency or institution to appoint a program coordinator;  (3) require that job applicants receive an explanation of the return-to-work policy; (4) require training of supervisors on implementation of the return-to-work policy; and (5) coordinate participation, as appropriate, of employee assistance programs.

Any full-time equivalents necessary to implement the return-to- work program are to be used only for the program and the net increase in full-time equivalents is temporary.

The Department of Labor and Industries is directed to appoint a state employee vocational rehabilitation coordinator to assist the return-to-work programs.

Appropriation:    none

Revenue:    yes

Fiscal Note:      available

Effective Date:Section 2 of the bill takes effect July 1, 1990.

Senate Committee - Testified: ECONOMIC DEVELOPMENT & LABOR:  Doug Connell (pro); Mark Brown, WFSE (pro)

Senate Committee - Testified: WAYS & MEANS: Joe Dear, Department of Labor and Industries (pro)