Report Title:

Workers' Compensation Alternative Dispute Resolution.

 

Description:

Provides for alternate dispute resolution to resolve controversies arising from workers' compensation claims.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1382

TWENTY-FOURTH LEGISLATURE, 2007

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO WORKERS’ COMPENSATION ALTERNATIVE DISPUTE RESOLUTION.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The purpose of this Act is to create guidelines to expedite the resolution of controversies through alternative measures in addition to the administrative hearings process for workers compensation claims.  This will allow workerscompensation claims to be resolved in a more timely manner, thereby enabling faster payments or benefits to the injured workers.

     SECTION 2.  Chapter 386, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§386- Alternative dispute resolution.  (a)  In lieu of a hearing before the director, at anytime after a claim for compensation is made and before the director renders a decision, the parties may agree in writing to have any controversy arising under this chapter be decided by a referee paid for by the parties.

     (b)  Appointment of referee.  Before a referee can conduct a hearing, the parties shall submit the agreed upon referees name to the director for appointment to serve as a referee.  The referee shall be a neutral person.  An individual who has a known, direct, and material interest in the outcome of the controversy or a known, existing, and substantial relationship with a party may not serve as a referee, unless that interest is disclosed, and any conflict is waived by the parties.

     (c)  Costs.  Unless the parties otherwise agree, the costs and fees of the alternative resolution process shall be divided equally between the parties.

     (d)  Stay of proceedings before the director.  If the parties agree to have any controversy referred to a referee, the director shall stay all actions or proceedings until the referee issues a recommended decision.

     (e)  Discovery and other matters.  This chapter and its rules remain applicable to proceedings before the referee except that requests shall be directed to and recommended decisions shall be made by the referee instead of the director.

     (f)  Referee’s recommended decision.  The referee shall issue and submit the referees recommended decision to the director no later than sixty days after the hearing, and shall deliver the recommended decision to all parties personally or by registered or certified mail.

     (g)  Approval of recommended decision. The director shall review the referees recommended decision to determine whether the recommended decision is in compliance with this chapter 386. If the recommended decision is in compliance with this chapter 386, the director shall approve the recommended decision and upon the directors approval, the recommended decision has the same force and effect as a directors decision rendered under this chapter 386, and it may be enforced as if it had been rendered in an action before the director.  If the recommended decision does not comply with this chapter 386, the director may modify or vacate the recommended decision.  If the director vacates the recommended decision, the parties may resubmit the controversy to the referee.

     (h)  Appeals.  Except when the parties have agreed that no appeal may be taken and where the director has not modified or vacated the referees recommended decision, the parties may appeal the directors decision in accordance with section 386-87.

     (i)  Applicable law.  This chapter 386 and Hawaii Administrative Rules title 12, chapters 10, 14, and 15 shall govern the proceedings before the referee.

     (j)  Mediation.  At anytime after a claim for compensation is made and before the director renders a decision, the parties may agree to resolve any controversy regarding this chapter through mediation by a mediator agreed upon by the parties. Unless otherwise provided in the agreement to mediate, the costs and fees of mediation shall be divided equally between the parties.  Upon the successful conclusion of the mediation, the parties shall submit the settlement agreement to the director for approval.  If any controversy remains unresolved after the mediation, the parties may request the director to resolve the controversy."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 

BY REQUEST