STAND. COM. REP. NO. 525

Honolulu, Hawaii

, 2025

RE: H.B. No. 480

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 480, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to streamline the approval process for functional capacity exams to ensure automatic approval of such exams when requested by the attending physician for an injured employee under certain conditions.

Your Committee received testimony in support of this measure from the Department of Labor and Industrial Relations; Department of Human Resources Development; Hawaii Insurers Council; and Hawaii Medical Association. Your Committee received testimony in opposition to this measure from the Office of the Mayor of the County of Maui. Your Committee received comments on this measure from one individual.

Your Committee finds that a functional capacity exam is a set of tests that are used to identify the patient's physical skills, functional capabilities, activity endurance, and work tolerances, typically administered by a trained and licensed provider, such as an occupational therapist or physical therapist. Employers understand well the importance of prompt evaluation as the functional capacity exam informs the clinical care team of possible diagnoses, treatments, and recovery. Additionally, the functional capacity exam provides an objective assessment that assists with future job modifications and the safe gradual transition back to work, decreasing risks for reinjury or long-term disability. This measure provides a reasonable step to decrease unnecessary and harmful delays for patients by eliminating employer permission for functional capacity exams in certain circumstances.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 480, H.D. 1, and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

SCOT Z. MATAYOSHI, Chair