FINAL BILL REPORT

HB 2362

                                  C 204 L 90

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 and Ways & Means

SYNOPSIS AS ENACTED

BACKGROUND:

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

The retrospective rating program also provides a participating agency or institution 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 Personnel Board 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 would 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 allow opportunity for state-wide return-to-work when an appropriate light duty job is not available in the appointing agency; require each agency or institution to appoint a program coordinator; require that job applicants receive an explanation of the return-to-work policy; require training of supervisors on implementation of the return-to-work policy; and coordinate participation, as appropriate, of employee assistance programs.

Any increase in employees necessary to implement the return-to- work programs is to be used only for the programs and the increase is temporary.

The Department of Labor and Industries is directed to appoint a state employee vocational rehabilitation coordinator to assist state agencies and institutions of higher education in implementing the return-to-work programs.

VOTES ON FINAL PASSAGE:

      House 97   0

      Senate    47     0

EFFECTIVE:June 7, 1990

            July 1, 1990 (Section 2)