STAND. COM. REP. NO. 687

Honolulu, Hawaii

RE:    S.B. No. 857

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 857, S.D. 1, entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to prohibit employers from denying workers' compensation claims without reasonable cause or during a pending investigation.

     In addition, this measure specifies a process for resolving billing disputes between the employer and the medical service provider and assesses a penalty on parties who fail to negotiate in good faith.

     Your Committee received written comments in support of this measure from ILWU Local 142 and the Hawaii Chapter of the American Physical Therapy Association.

     Your Committee received written comments in opposition to this measure from the Chamber of Commerce Hawaii, General Contractors Association of Hawaii, and Hawaii Insurers Council.

     Your Committee received written comments on this measure from the Department of Human Resources Development and the Department of Labor and Industrial Relations.

     Your Committee finds that Hawaii's workers' compensation system has been plagued by delays and denials of claims, which exacerbate the recovery of injured workers.  Your Committee further finds that employers should be limited in their ability to deny claims pending investigation and be held accountable for processing claims for medical services in a timely manner.  Your Committee recommends that the measure's stakeholders work towards a common solution as this measure continues to move through the legislative process.

     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. 857, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

JILL N. TOKUDA, Chair