Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Labor & Public Employment, to which was referred H.B. No. 1273 entitled:

begs leave to report as follows:

The purpose of this bill is to:

The Hawaii State AFL-CIO, ILWU, Local 142, Hawaii Rehabilitation Counseling Association, Sestak Rehabilitation Services, Rehabilitation Association of Hawaii, and numerous concerned individuals testified in support of this bill. The Department of Labor and Industrial Relations, General Contractors Association of Hawaii, Hawaii Independent Insurance Agents Association, Society for Human Resource Management – Hawaii Chapter, and the Retail Merchants of Hawaii testified in opposition to this measure. The Department of Human Resources Development and the Employers' Chamber of Commerce provided comments on the bill.

Your Committee finds that the average rehabilitation period under workers' compensation experienced in Hawaii is approximately 16 months. However, in fewer but more serious or complicated cases, the rehabilitation process can take an extended period of time. Setting a fixed time limit on the rehabilitation period could inequitably cut off an injured employee from necessary treatment. This bill prohibits arbitrary time limits on rehabilitation plans, thereby providing flexibility in assessing the appropriate treatment and addressing the individual needs of injured employees to enable their return to suitable employment.

Your Committee has amended this bill by changing the effective date to July 1, 3030, to promote more discussion on this measure.

As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1273, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1273, H.D. 1, and be referred to the Committee on Finance.