STAND. COM. REP. NO. 1049-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1509

H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1509, 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 amend the Workers' Compensation Law by:

(1) Repealing the authorization of a physician to transmit a treatment plan by mail or facsimile and the requirement that the physician submit the plan to an address or facsimile number provided by the employer;

(2) Requiring an employer to file a response, either accepting or rejecting a treatment plan, within seven days of receipt of the plan and imposing a monetary penalty on an employer that fails to do so within this time period; and

(3) Specifying that a treatment plan is deemed accepted if the employer fails to file an objection and other documents within the seven-day period.

Your Committee received testimony in support of this measure from the Department of Labor and Industrial Relations; American Property Casualty Insurance Association; University of Hawaii Professional Assembly; Work Injury Medical Association of Hawaiʻi; International Brotherhood of Electrical Workers Local Union 1186; Aloha Billing Company; and one individual. Your Committee received testimony in opposition to this measure from the Society for Human Resource Management - Hawaii. Your Committee received comments on this measure from the Department of Human Resources Development; Kohala Coast Resort Association; and two individuals.

Your Committee finds that timely approval of medical treatment is critical to the prompt delivery of care to injured employees under the workers' compensation system. Your Committee further finds that delays caused by an employer's failure to respond to proposed treatment plans can postpone necessary medical services and prolong an injured employee's recovery. By requiring employers to respond to treatment plans within a defined timeframe, establishing a monetary penalty for noncompliance, and clarifying that a treatment plan is deemed accepted if an employer fails to timely object with supporting documentation, this measure promotes accountability, reduces unnecessary delays, and ensures that injured employees receive timely and appropriate medical treatment.

Your Committee has amended this measure by:

(1) Requiring an employer to file a response, either accepting or rejecting a treatment plan, within ten days of receipt of the plan, rather than seven days;

(2) Requiring the employer to file this response solely by secure electronic means, rather than by mail, facsimile, or secure electronic means; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

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. 1509, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1509, H.D. 2.

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

____________________________

SCOT Z. MATAYOSHI, Chair