A BILL FOR AN ACT

SECTION 1. Section 386-25, Hawaii Revised Statutes, is amended as follows:

(1) By amending subsection (a) to read as follows:

"(a) The purposes of vocational rehabilitation are to restore an injured worker's earning capacity as nearly as possible to that level which the worker was earning at the time of injury and to return the injured worker to suitable work in the active labor force as quickly as possible in a cost-effective manner. A self-insured or insured employer may provide job placement within its own organization pursuant to an approved return to work plan. If an employer chooses not to provide job placement, or is unsuccessful in job placement, then the employee, if qualified, may select a vocational rehabilitation provider."

(2) By amending subsection (e) to read as follows:

"(e) The director shall adopt rules for additional living expenses necessitated by the rehabilitation program, together with all reasonable and necessary vocational training. The rehabilitation program shall utilize rehabilitation services, if available on the employee's home island, so as to mitigate additional living expenses. In addition to vocational training, the vocational rehabilitation plan may include the purchase of tools or equipment necessary to complete the training and shall not include the purchase of tools or equipment, inventory, premises, improvements and betterment or other items normally associated with establishing a business. Providers of vocational rehabilitation services may not charge more than is reasonable and customary for the service provided. The director may survey other providers in the community or use other professional means to determine usual and customary charges for specific services."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2001