Chapter 273 Oregon Laws 1999

Session Law

AN ACT

SB 288

Relating to rehabilitation facility premium refunds; creating new provisions; amending ORS 656.605 and 656.622; repealing ORS 656.530; and declaring an emergency.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 656.530 is repealed.

SECTION 2. (1)(a) There is transferred to the Department of Human Resources for the biennium beginning July 1, 1999, out of the Workers' Benefit Fund, the amount of $8,906,000 for services provided by rehabilitation facilities that meet the criteria described in subsection (2) of this section.

(b) Distributions from this transfer shall be based upon a plan developed collaboratively by representatives from the Department of Human Resources, the Oregon Department of Administrative Services, the Legislative Fiscal Office and the affected provider community. The distribution plan must be approved by the Legislative Assembly and shall propose a long term solution to the problem created by the loss of premium refunds resulting from the repeal of ORS 656.530 by section 1 of this 1999 Act. This solution may include the use of state, federal or other available funds. If the Legislative Assembly does not approve a distribution plan for the biennium beginning July 1, 2001, funds shall be distributed in accordance with the distribution plan for the biennium beginning July 1, 1999.

(2) As used in this section, "rehabilitation facility" means a not-for-profit facility that is approved by the Department of Human Resources and that is established and operated by a private organization, agency or institution to provide vocational training, employment opportunity and employment for disabled or severely handicapped individuals, and that was qualified to receive payments pursuant to ORS 656.530 (1997 Edition) on January 1, 1999. "Rehabilitation facility" does not include a facility established or operated by this state or a political subdivision within this state. Distribution of the moneys transferred under subsection (1) of this section shall be based upon formulas agreed upon by the Department of Consumer and Business Services and the Department of Human Resources.

(3) A rehabilitation facility qualified to receive payments pursuant to ORS 656.530 (1997 Edition) as of January 1, 1999, and eligible for a payment under this section for the biennium beginning July 1, 1999, shall receive an amount equal to or greater than the amount the rehabilitation facility would be eligible to receive under the formulas agreed upon by the Department of Consumer and Business Services and the Department of Human Resources under subsection (2) of this section. This amount shall not be less than the three-year average of premium refunds for the years 1995, 1996 and 1997 as reported to the Department of Human Resources by the Department of Consumer and Business Services as of January 1, 1999.

(4) Notwithstanding the provisions of ORS 656.530 (1997 Edition), refunds of premiums paid pursuant to ORS 656.530 (1997 Edition) shall include only those portions of premiums paid pursuant to any guaranty contract for coverage periods prior to July 1, 1999.

SECTION 3. ORS 656.605 is amended to read:

656.605. (1) The Workers' Benefit Fund is created in the State Treasury, separate and distinct from the General Fund. Moneys in the fund shall be invested in the same manner as other state moneys and investment earnings shall be credited to the fund. The fund shall consist of the following:

(a) Moneys received pursuant to ORS 656.506.

(b) Moneys recovered under ORS 656.054.

(d) All moneys received by the Director of the Department of Consumer and Business Services pursuant to law or from any other source for purposes for which the fund may be expended.

(2) Moneys in the Workers' Benefit Fund may be expended for the following purposes:

(a) Expenses of programs under ORS 656.506, 656.622, 656.625, 656.628 and 656.630.

(b) Proceedings against noncomplying employers pursuant to ORS 656.054 and 656.735.

(c) Expenses of vocational assistance on claims, the cost of which was imposed pursuant to section 15, chapter 600, Oregon Laws 1985.

(3) Subject to the following provisions, all moneys in the fund are appropriated continuously to the Director of the Department of Consumer and Business Services to carry out the activities for which the fund may be expended:

(a) Moneys received pursuant to ORS 656.054 and 656.735 and transfers made pursuant to ORS 705.148 may be expended only to carry out the provisions of ORS 656.054 and 656.735 and section 15, chapter 600, Oregon Laws 1985.

(b) Moneys received pursuant to ORS 656.506 and the transfers of unexpended and unobligated moneys in the Retroactive Reserve, Reemployment Assistance Reserve, Reopened Claims Reserve and Handicapped Workers Reserve referred to in ORS 656.506, 656.622, 656.625 and 656.628 (All 1993 Edition) may be expended only to carry out the programs referred to in ORS 656.506, [656.530,] 656.622, 656.625, 656.628 and 656.630.

(4) Notwithstanding any other provision of this chapter, if the director determines at any time that there are insufficient moneys in the Workers' Benefit Fund to pay the expenses of programs for which expenditure of the fund is authorized, the director may reduce the level of benefits payable accordingly.

SECTION 4. ORS 656.622 is amended to read:

656.622. (1) There is established a Reemployment Assistance Program for the benefit of employers and their workers and for the purpose of:

(a) Giving employers and their workers the benefits provided in this section.

[(b) Assisting rehabilitation facilities as provided in ORS 656.530.]

[(c)] (b) Providing reimbursement of reasonable program administration costs of self-insured employers and of insurers of employers who participate in any program funded through the Reemployment Assistance Program.

(2) In order to preclude or reduce nondisabling claims from becoming disabling claims, preclude on-the-job injuries from recurring, reduce disability by returning injured workers to work sooner and to help injured workers remain employed, the Director of the Department of Consumer and Business Services may provide assistance to employers from the Reemployment Assistance Program in such manner and amount as the director considers appropriate. Assistance may include, but need not be limited to, modification of work sites. For purposes of this subsection, work site modification may include engineering design work and occupational health consulting services. Factors to be considered by the director in determining the extent of assistance must include but need not be limited to the financial stability and solvency of employers, the employer's record of returning injured workers to the workplace and the cost-effectiveness of modifications. Assistance may be provided in the form of grants and matching contributions from employers for funds.

(3) In order to encourage the employment of individuals who have incurred compensable injuries that result in disability which may be a substantial obstacle to employment, the director may provide, to employers who employ such individuals, assistance from the Workers' Benefit Fund in such manner and amount as the director considers appropriate.

(4)(a) In addition to such assistance as the director may provide under this section, the director shall provide reimbursement to self-insured employers or to the insurers of employers who hire preferred workers for the claim costs incurred for injuries to those workers during the first three years from the date of hire, as follows:

(A) The claim costs of injuries incurred by those workers.

(B) Reasonable claims administration costs.

(b) As used in this subsection, "preferred worker" means a worker who, because of a permanent disability resulting from a compensable injury or occupational disease, is unable to return to the worker's regular employment, whether or not an order has been issued awarding permanent disability.

(5)(a) In addition to such assistance as the Director of the Department of Consumer and Business Services may provide under subsection (3) of this section, the director shall provide to participating self-insured employers and the insurers of participating employers reimbursement of reasonable program administration costs.

(b) As used in this subsection, "participating employer" or "participating self-insured employer" means an employer participating in any program funded through the Reemployment Assistance Program.

(6) Notwithstanding any other provision of law, determinations by the director regarding assistance pursuant to this section are not subject to review by any court or other administrative body.

(7) The Reemployment Assistance Program shall be funded with moneys collected as provided in ORS 656.506.

(8) Any assistance from the Reemployment Assistance Program shall be to the extent of the moneys available in the Workers' Benefit Fund, for the purpose of the program as determined by the director.

(9) The director may make such rules as may be required to establish, regulate, manage and disburse moneys in the Workers' Benefit Fund in accordance with the intent of this section. Such rules shall include, but are not limited to, the eligibility criteria to receive assistance under this section and the issuance of identity cards to preferred workers to assist employers in the administration of the program.

(10) Claims costs incurred as a result of an injury sustained by a preferred worker during the three years after that worker is hired shall not be included in any data used for ratemaking or individual employer rating or dividend calculations by a guaranty contract insurer, a rating organization licensed pursuant to ORS chapter 737, the State Accident Insurance Fund Corporation or the Department of Consumer and Business Services. Neither insurance premiums nor premium assessments under this chapter are payable for preferred workers.

(11) Any moneys from the Workers' Benefit Fund reimbursed to an agency for costs incurred in reemploying injured state workers in the manner described in ORS 659.412 or in providing wage subsidies for the reemployment of injured state workers shall be outside the biennial expenditure limitation imposed on the agency by the Legislative Assembly and shall be available for expenditure by the agency as a continuous appropriation.

SECTION 5. This 1999 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 1999 Act takes effect July 1, 1999.

Approved by the Governor June 16, 1999

Filed in the office of Secretary of State June 17, 1999

Effective date July 1, 1999

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