SENATE BILL REPORT

HB 2695

BYRepresentatives Vekich, R. King, Leonard, Cole, Prentice, Jones, Rector and Basich

Revising provisions for industrial insurance vocational rehabilitation services.

House Committe on Commerce & Labor

Senate Committee on Economic Development & Labor

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

Majority Report:  Do pass as amended.

      Signed by Senators Lee, Chairman; McMullen, Murray, Smitherman, Warnke, Williams.

Senate Staff:Dave Cheal (786-7576)

                  February 23, 1990

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, FEBRUARY 23, 1990

BACKGROUND:

Injured workers or workers with occupational diseases receive workers' compensation benefits until the medical condition has stabilized and the worker is released to return to work or the claim is closed.  A worker who is released to return to work may no longer be employed or only may be able to obtain employment at wages less than his or her wages at the time of injury.  Vocational rehabilitation services may be provided to an injured worker if, in the sole discretion of the Department of Labor and Industries, the rehabilitation is both necessary and likely to make the worker employable at gainful employment.  Under the vocational rehabilitation program, a worker may be considered employable at gainful employment if the worker is able to work at a job that pays at least the higher of the state or federal minimum wage.  If an injured worker is employable at minimum wage or higher, the worker might not receive vocational rehabilitation services.

A vocational rehabilitation program may not exceed a cost of $3,000 or extend beyond a one year period, unless a second year is authorized by the department.

SUMMARY:

The requirement is deleted that vocational rehabilitation benefits under the industrial insurance law be provided only at the sole discretion of the Department of Labor and Industries.

The maximum vocational rehabilitation benefit amount of $3,000 in any year is deleted.  The one year maximum length of a vocational rehabilitation plan may be extended for up to four years for education and training at a vocational institution, community college, or higher education institution. "Gainful employment" for the purposes of vocational rehabilitation is defined as employment or self-employment in which the worker earns monthly wages, including employer-provided benefits, equal to or greater than 90 percent of the worker's pre- injury wages.

For a worker to be considered "employable," the worker must be able to compete successfully in the labor market.  A worker who is found employable must be provided job placement services if the worker has not returned to work with the employer of injury or otherwise returned to gainful employment.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 24, 1990

SUMMARY OF PROPOSED SENATE AMENDMENTS:

All changes to current law in the bill are removed except the elimination of the provision that vocational rehabilitation benefits are provided only at the sole discretion of the Department of Labor and Industries.  A worker would be entitled to vocational rehabilitation benefits if such benefits are both necessary and likely to enable the injured worker to return to work.

Senate Committee - Testified: PRO:  Michael Welch, Richard Blumberg, Jeff Johnson, James Boling, Patrick Tomulty, Dan Donhane; CON: Cliff Finch, Charles Bush, Gary Peterson, Gary Smith, Kathleen Collins; NO POSITION:  Chuck Holmquist, Department of Labor and Industries