04/20/2000 09:10 AM Senate FIN

SENATE CS FOR CS FOR HOUSE BILL NO. 419(JUD)                                                                                    
"An Act relating to the weekly rate of compensation                                                                             
and minimum and maximum compensation rates for                                                                                  
workers' compensation; specifying components of a                                                                               
workers' compensation reemployment plan; adjusting                                                                              
workers' compensation benefits for permanent partial                                                                            
impairment, for reemployment plans, for rehabilitation                                                                          
benefits, for widows, widowers, and orphans, and for                                                                            
funerals; relating to permanent total disability of an                                                                          
employee receiving rehabilitation benefits; relating                                                                            
to calculation of gross weekly earnings for workers'                                                                            
compensation benefits for seasonal and temporary                                                                                
workers and for workers with overtime or premium pay;                                                                           
setting time limits for requesting a hearing on claims                                                                          
for workers' compensation, for selecting a                                                                                      
rehabilitation specialist, and for payment of medical                                                                           
bills; relating to termination and to waiver of                                                                                 
rehabilitation benefits, obtaining medical releases,                                                                            
and resolving discovery disputes relating to workers'                                                                           
compensation; setting an interest rate for late                                                                                 
payments of workers' compensation; providing for                                                                                
updating the workers' compensation medical fee                                                                                  
schedule; and providing for an effective date."                                                                                 
                                                                                                                                
                                                                                                                                
JANET SEITZ, Staff to Representative Norman Rokeberg,                                                                           
stated that this legislation was introduced at the request                                                                      
of the Adhoc Committee on Workers Compensation and the                                                                          
Department of Labor and Workforce Development.    She noted                                                                     
that this legislation updated the Workers Compensation law,                                                                     
which was last extensively revised in 1998.  She added that                                                                     
this was a technical bill.                                                                                                      
                                                                                                                                
PAUL GROSSI, Director, Division of Workers' Compensation,                                                                       
Department of Labor and Workforce Development stated that                                                                       
the department supports this bill.  He added that this                                                                          
legislation provides needed increased benefits for injured                                                                      
workers and gave examples of how this was effectuated.   He                                                                     
disclosed that these benefits have not been raised for 12                                                                       
years taking into account inflation.  He recited other                                                                          
specific examples of how this legislation was modified.                                                                         
                                                                                                                                
Senator Phillips referred to a workers compensation audit                                                                       
and asked what recommendations generated from it were                                                                           
included in this legislation.                                                                                                   
                                                                                                                                
Mr. Grossi responded that the parties who drafted this                                                                          
legislation did not have the advantage of this audit's                                                                          
recommendations.  He referred to those same concerns                                                                            
addressed in the audit and this legislation as follows:                                                                         
increase in permanent and partial impairment benefit,                                                                           
increases in retraining, and overtime pay included in the                                                                       
calculation of compensation rate, etceteras.                                                                                    
                                                                                                                                
Senator Phillips noted that the audit came out in January.                                                                      
                                                                                                                                
Ms. Seitz stated that the audit came out in March of 2000,                                                                      
which was after the introduction of this legislation.  She                                                                      
added that this legislation did not bring the department                                                                        
into compliance with the audit and gave specific examples,                                                                      
such as employer penalties, or uninsured employees issues.                                                                      
                                                                                                                                
Senator Wilken asked about problems with controverted                                                                           
claims and wondered if this legislation addressed this                                                                          
issue.                                                                                                                          
                                                                                                                                
Mr. Grossi responded that this area was not addressed in                                                                        
the bill.                                                                                                                       
                                                                                                                                
Senator Green voiced her concerns about the strong comments                                                                     
outlined in the audit regarding the administration of this                                                                      
program.  She gave highlights of the deficiencies given in                                                                      
the audit.  She asked if the "ten-year review" regarding                                                                        
workers rehab was addressed in this legislation.                                                                                
                                                                                                                                
Mr. Grossi responded that this review process had not been                                                                      
addressed in this legislation.  He pointed out that in                                                                          
order to qualify for retrain benefits, an individual must                                                                       
be able to show that they are unable to return to the type                                                                      
of work performed at the time of injury to any job held                                                                         
within the last ten years.  He noted that there were                                                                            
problems inherent in this requirement.                                                                                          
                                                                                                                                
Co-Chair Torgerson stated that the Committee would HOLD                                                                         
this legislation.