STAND. COM. REP. NO. 437

Honolulu, Hawaii

RE:    S.B. No. 62

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Labor, to which was referred S.B. No. 62 entitled:

"A BILL FOR AN ACT RELATING TO WORKERS' COMPENSATION,"

begs leave to report as follows:

     The purpose of this measure is to require independent medical examinations and permanent impairment rating examinations for workers' compensation claims to be performed by physicians mutually agreed upon by employers and employees or appointed by the Director of Labor and Industrial Relations.

     Testimony in support of the measure was submitted by thirteen organizations.

     Testimony in opposition of the measure was submitted by two state agencies, two county agencies, and seven organizations.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

     Your Committee finds that the current method of selection of physicians to perform independent medical examinations by employers has led to confrontation, distrust, and animosity between many injured workers and employers.

     Your Committee further finds that since employers or insurers currently pay for and select examining physicians, these physicians may be biased toward employers and insurers, and that a more impartial process of selecting examining physicians would better protect the interests of both the injured worker and the employer.

     Your Committee notes that while there is no consensus on whether this measure will increase or decrease workers' compensation costs, it may reduce distrust between injured workers and their examining physicians, thereby minimizing unnecessary hearings to dispute physicians' findings.

     Your Committee has amended this measure by making technical, nonsubstantive changes.

     As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 62, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 62, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Labor,

____________________________

DWIGHT Y. TAKAMINE, Chair