STAND. COM. REP. NO. 2303

Honolulu, Hawaii

RE: S.B. No. 2364

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committees on Labor and Judiciary, to which was referred S.B. No. 2364 entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to prevent employers from denying a workers' compensation claim without reasonable cause or while the claim is pending investigation and to impose fines and penalties on employers who continue to do so without reasonable cause.

Your Committees received testimony in support of this measure from the Work Injury Medical Association of Hawaii, Hawaii Chapter of the American Physical Therapy Association, and two individuals. Your Committees received testimony in opposition to this measure from the Department of Labor and Industrial Relations and Hawaii Insurers Council. Your Committees received comments on this measure from the Department of Human Resources Development and City and County of Honolulu Department of Human Resources.

Your Committees find that investigations into pending workers' compensation claims can lead to delays in care for those who are seriously injured. Patients waiting to hear from insurance companies are often unable to receive care and compensation until decisions are rendered. Your Committees find that this measure protects workers from predatory practices of delaying payment and care, which force workers to return to work with serious injuries, find less suitable employment, or apply for public assistance.

Your Committees have amended this measure by inserting an effective date of January 1, 2045, to encourage further discussion.

As affirmed by the records of votes of the members of your Committees on Labor and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2364, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2364, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Labor and Judiciary,

________________________________ BRIAN T. TANIGUCHI, Chair

________________________________ JILL N. TOKUDA, Chair