HLS 12RS-599 ORIGINAL Page 1 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2012 HOUSE BILL NO. 360 BY REPRESENTATIVE BROADWATER WORKERS COMPENSATION: Provides for a reemployment and training fund for injured employees AN ACT1 To amend and reenact R.S. 23:1310.13 and to enact R.S. 23:1227, relative to workers'2 compensation; to establish a reemployment and retraining trust fund; to provide for3 the reemployment and retraining of injured employees; and to provide for related4 matters.5 Be it enacted by the Legislature of Louisiana:6 Section 1. R.S. 23:1310.13 is hereby amended and reenacted and R.S. 23:1227 is7 hereby enacted to read as follows:8 §1227. Injured Employee Reemployment and Retraining Fund; purpose; programs;9 eligibility; administration10 A. Notwithstanding the provisions of R.S. 23:1291.1(E), there is hereby11 established a special account in the Office of Workers' Compensation Administrative12 Fund, to be known as the Injured Employee Reemployment and Retraining Account.13 Monies that are deposited into this account pursuant to the provisions of R.S.14 23:1310.13 shall be subject to appropriation by the legislature and shall be used15 exclusively to fund reeducation and retraining for injured employees who have a16 workers' compensation claim in Louisiana and who qualify pursuant to the17 provisions of R.S. 23:1226(E), and to fund grants to eligible employers to assist an18 injured employee to return to work sooner. The purpose of this program is to19 provide an opportunity for an injured employee to replace the skills that no longer20 HLS 12RS-599 ORIGINAL HB NO. 360 Page 2 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. serve him as a result of his injury and to assist certain employers to provide modified1 employment that will enable the injured employe e to return to work before full2 recovery.3 B.(1) The director shall administer the account and shall promulgate rules4 and regulations in accordance with the Administrative Procedure Act for the5 administration of this Section, including the procedures for applying for funds,6 distribution of funds, monitoring of and auditing of training conducted with funds,7 reimbursement of costs, and any additional requirements the director deems8 appropriate and necessary to carry out the provisions of this Section.9 (2) The director shall submit an annual report to the Joint Legislative10 Committee on the Budget, the House of Representatives Committee on Labor and11 Industrial Relations, the Senate Committee on Labor and Industrial Relations, and12 the Louisiana Workforce Investment Council not less than sixty days before the13 legislature convenes for regular session. This report shall detail the number of14 applications received, number of applications approved, contract obligations, funds15 expended, employers and training entities participating, and the number of persons16 trained.17 (3) The director shall present fiscal reports to the legislative auditor as often18 as the legislative auditor deems appropriate.19 C. The Injured Employee Reemployment and Retraining Account monies20 shall only be used for the following types of training:21 (1) Reeducation or retraining in a demand occupation provided by the22 Louisiana Community and Technical College System, or a third-party provider in23 Louisiana, that is customized to the special needs and restrictions of the injured24 employee. This reeducation and retraining may include standardized courses,25 specialized curriculums, and instructional materials.26 (2) Retraining that shall, at a minimum, meet the Occupational Safety and27 Health Administration standards when applicable.28 HLS 12RS-599 ORIGINAL HB NO. 360 Page 3 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. D.(1) A third-party training provider shall be selected by the director with1 input from the injured employee as to his interest in the type of training, the treating2 physician as to the physical restrictions of the injured employee, and the vocational3 rehabilitation counselor working with that employee as to the physical requirements4 of the job opportunities the training would make available to the injured employee.5 The training provider must have a demonstrated record of successful training with6 placement and satisfaction rates and must use current industry standards as the basis7 for programs utilized to train individuals when applicable.8 (2) All disbursements of funds for retraining shall be made to the training9 provider.10 E. To be eligible for a grant to help cover expenses arising from providing11 employment modifications to facilitate an injured employee's return to work, an12 employer must meet all of the following qualifications:13 (1) The employer must have been operating in Louisiana for not less than14 three years.15 (2) The employer must have current certification of workers' compensation16 insurance and be current on the payment of any premiums due and of its state17 unemployment taxes.18 (3) The employer must employ fewer than fifty employees statewide.19 (4) The employer must share half of the cost associated with the providing20 of modified employment.21 F.(1) No more than five percent of annual amounts deposited in the fund22 shall be used for the payment of expenses incurred for the administration of this23 account.24 (2) Funds awarded pursuant to this Section shall not be expended or be25 available for expenditure in any manner which would permit their substitution for,26 or a corresponding reduction in, any state or federal appropriation to any public27 postsecondary institution of higher education.28 HLS 12RS-599 ORIGINAL HB NO. 360 Page 4 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (3) At no time shall the outstanding contractual obligations of the account1 exceed the balance of the account. All remaining and unencumbered balances at the2 end of any fiscal year shall remain to the credit of the fund and shall be used solely3 for the purpose stated in this Section.4 * * *5 §1310.13. Expenses of director; penalties imposed by Act; payment into special6 state treasury fund7 All Notwithstanding any provisions to the contrary, all penalties imposed by8 the Worker's Compensation Act, except those specifically payable to claimants, or9 as otherwise specifically provided by law to be made payable to the Kids Chance10 Scholarship Fund, Louisiana Bar Foundation, as provided in R.S. 23:1208(D), shall11 be deposited into the Office of Worker's Compensation Administrative Fund and12 used in those amounts appropriated by the legislature as provided for in R.S.13 23:1291.1(E) Injured Employee Reemployment and Retraining Account as14 established under R.S. 23:1227 used in those amounts appropriated by the legislature15 as provided for in R.S. 23:1291.1(E) and shall be used exclusively for the purposes16 established therein.17 DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] Broadwater HB No. 360 Abstract: Creates the Injured Employee Reemployment and Retraining fund to aid injured employees in returning to work with alternate skills. Proposed law creates the Injured Employee Reemployment and Retraining Account within the Office of Workers' Compensation Administrative Fund. Proposed law requires that the fund be used to retrain and reeducate injured employees who, due to the injury, are unable to perform the same job for which the employee is qualified. Proposed law further requires that the fund be used to aid certain employers to make adjustments to bring the injured employee back to work in a different capacity. Proposed law provides that reeducation or retraining can be provided by the La. Community and Technical College System or a third party chosen by the director. HLS 12RS-599 ORIGINAL HB NO. 360 Page 5 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Proposed law provides that retraining shall meet the Occupational Safety and Health Administration standards when applicable. Proposed law provides that the director shall administer the account and promulgate rules and regulations according to the APA. Proposed law requires that the director submit an annual report to the Joint Legislative Committee on the Budget, the House of Representatives and the Senate committees on labor and industrial relations, and the La. Workforce Investment Council. Proposed law further requires that the director submit fiscal reports to the legislative auditor. Present law provides that all penalties imposed by the Workers' Compensation Act, except those due to claimants, be deposited into the Office of Workers' Compensation Administrative Fund and used as appropriated by the legislature. Proposed law amends present law from depositing all penalties into the Office of Workers' Compensation Administrative Fund with certain exceptions, to depositing the penalties into the Injured Employee Reemployment and Retraining Account, except that money payable to the Kids Chance Scholarship Fund, La. Bar Foundation, as provided by law. (Amends R.S. 23:1310.13; Adds R.S. 23:1227)