Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Labor and Public Employment, to which was referred S.B. No. 1070 entitled:

begs leave to report as follows:

The purpose of this bill is to amend Hawaii's Workers' Compensation Law by:

ILWU Local 142 and Consumer Lawyers of Hawaii testified in support of this bill. The Department of Labor and Industrial Relations (DLIR), Hawaii Insurers Council, Hawaii Employers' Mutual Insurance Company, Inc., Academy of Independent Medical Examiners of Hawaii, Hawaii Medical Association, Chamber of Commerce of Hawaii, Society for Human Resource Management, and several concerned physicians testified in opposition to this bill.

Your Committee finds that the procedure for selecting permanent-impairment examiners is not defined by statute or rule. Because of this, the selection process is often prolonged and combative. This bill attempts to streamline the process by requiring opposing parties to agree upon a mutually acceptable examiner, or failing that, allowing the Director of DLIR to appoint an examiner from a list of qualified examiners. Your Committee believes that these procedures will reduce delays and costs and result in the appointment of a fair and qualified examiner by agreement of the parties.

Upon consideration, your Committee has amended this bill by deleting its substance and inserting the provisions of H.B. No. 1013, H.D. 3. As amended, this bill would also:

1. Clarify that the procedure for selecting a physician applies solely to examinations performed to determine permanent impairment;
2. Clarify that the list of qualified examiners be categorized by specialty practice and, to the extent necessary, that examiners be selected by specialty practice; and
3. Authorize the Director of DLIR to adopt rules under chapter 91, Hawaii Revised Statutes, to effectuate the purposes of this bill.

In addition, technical, nonsubstantive amendments were made for purposes of style and consistency.

As affirmed by the record of votes of the members of your Committee on Labor and Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1070, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1070,

H.D. 1, and be referred to the Committee on Consumer Protection and Commerce.