Authorizes the department of labor and industrial relations to utilize funds from the special compensation fund to contract personnel to monitor vocational rehabilitation recipients compensable under workers' compensation. Requires an injured employee's employer to approve the employee's choice of vocational rehabilitation program prior to enrollment.

A BILL FOR AN ACT

SECTION 1. The legislature finds that the department of labor and industrial relations disability compensation division administers compliance with the State's workers' compensation law codified as chapter 386, Hawaii Revised Statutes. As part of its duties, the disability compensation division utilizes the special compensation fund to pay for, among other things, disability benefits to injured workers. In some cases, part of an injured worker's recuperation from a work-related injury includes the use of vocational rehabilitation services. Although vocational rehabilitation may be necessary in certain instances, the legislature believes that the provision of these services need to be more closely monitored to ensure the service's efficacy and that the services provided reasonably match the injured employee's post-injury abilities.

The purpose of this Act is to authorize the director of labor and industrial relations to expend a portion of special compensation fund moneys to contract the services of persons qualified to monitor vocational rehabilitation services provided to injured workers and to require that an injured employee's employer approve any vocational rehabilitation program prior to the employee's enrollment.

SECTION 2. Chapter 386, Hawaii Revised Statutes, is amended by adding a new section to part IV, subpart C, to be appropriately designated and to read as follows:

"§386- Special compensation fund; authorized use of funds. (a) In addition to any other uses of moneys contained in the special compensation fund authorized by law, the director may expend a portion of special compensation fund moneys to contract the services of persons qualified to monitor vocational rehabilitation services provided to injured workers to ensure that the injured worker is receiving appropriate education and training.

(b) The director shall adopt rules in accordance with chapter 91 to effectuate the purposes of this section."

SECTION 3. Section 386-25, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) Enrollment in a rehabilitation plan or program shall not be mandatory and the approval of a proposed rehabilitation plan or program by the injured employee and the injured employee's employer shall be required. The injured employee may select a certified provider of rehabilitation services. [Both the certified provider and the injured employee, within a reasonable time after initiating rehabilitation services, shall give proper notice of selection to the employer.]"

SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval.