Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1808 entitled:

begs leave to report as follows:

The purpose of this measure is to invalidate workers' compensation rules adopted on or after January 1, 2005.

Furthermore, this measure provides clarification on workers' compensation issues relating to vocational rehabilitation procedures, procedures for hearings on claims, the scope of temporary total disability, approval of requests for attorneys' fees, the content of medical reports, reimbursement of fees in fraud cases, self insurance procedures, and the Insurance Commissioner's authority to prosecute fraud committed by the insurer or employer.

Your Committee finds that this measure makes balanced and reasonable changes to the current workers' compensation statutes. Your Committee finds that this measure codifies administrative rules that were in effect prior to January 1, 2005, which fairly and reasonably implemented the underlying statutes. Your Committee further finds that the rules adopted on or after January 1, 2005 are not consistent with those same statutes, and send conflicting directives to employers, employees, labor organizations, and insurers.

Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1808, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1808, S.D. 1.