STAND. COM. REP. NO. 215

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1563
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Labor and Environment, to which was
referred S.B. No. 1563, entitled: 

     "A BILL FOR AN ACT MAKING AN APPROPRIATION FOR ADDITIONAL
     FULL-TIME VOCATIONAL REHABILITATION SPECIALIST POSITIONS,"

begs leave to report as follows:

     The purpose of this measure is to appropriate general fund
moneys for full-time vocational rehabilitation specialist
positions within the Department of Labor and Industrial Relations
(DLIR) for fiscal year 1999-2000.

     Testimony in favor of this measure was received from DLIR,
Hawaii Rehabilitation Counseling Association, ILWU Local 142,
National Association of Rehabilitation Professionals in the
Private Sector, Rehabilitation Association of Hawaii, and three
individuals.

     Your Committee finds that vocational rehabilitation is a
critical component of our workers' compensation system that
assists in returning injured workers to productive employment as
quickly as possible, in a cost effective manner, while striving
to ensure that the pre-injury earning capacity of the employee is
maximized.  

     Your Committee further finds that due to budget cutbacks,
the Rehabilitation Unit of the Disability Compensation Division
(DCD) currently has one employee to monitor the vocational
rehabilitation aspects of DCD.  As a result, the mediation of

 
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                                   STAND. COM. REP. NO. 215
                                   Page 2


conflicts, oversight of existing vocational rehabilitation plans,
and holding of hearings on the approval or modification of
vocational rehabilitation has been severely compromised.  Both
employers and employees have been frustrated by the delays in
returning injured employees to employment.

     Your Committee has amended this measure to specify that the
appropriation is for $65,000 for one vocational rehabilitation
position and one full-time vocational rehabilitation specialist
clerical position, as provided in the DLIR testimony.

     As affirmed by the record of votes of the members of your
Committee on Labor and Environment that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 1563, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 1563,
S.D. 1, and be referred to the Committee on Ways and Means.


                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Labor and
                                   Environment,



                                   ______________________________
                                   BOB NAKATA, Chair

 
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