STAND. COM. REP. NO. 1675

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.C.R. No. 201
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred S.C.R. No. 201 entitled:

     "SENATE CONCURRENT RESOLUTION REQUESTING THE DEPARTMENT OF
     COMMERCE AND CONSUMER AFFAIRS AND THE DEPARTMENT OF LABOR
     AND INDUSTRIAL RELATIONS TO COORDINATE THEIR EFFORTS AND
     ENFORCE WORKERS' COMPENSATION MANDATORY COVERAGE
     REQUIREMENTS,"

begs leave to report as follows:

     The purpose of this measure is to request that the
Department of Commerce and Consumer Affairs (DCCA) and the
Department of Labor and Industrial Relations (DLIR):

     (1)  Coordinate efforts to enforce workers' compensation
          coverage requirements;

     (2)  Publish a list of the contractors that do not carry
          workers' compensation insurance and cross-check the
          list against unemployment insurance reports, temporary
          disability insurance reports and pre-paid health care
          reports; and

     (3)  Confer with private industry about the seriousness of
          the matter and report to the Legislature on possible
          enforcement procedures.

     Your Committee finds that there are contractors who claim to
have no employees in order to avoid the workers' compensation

 
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                                   STAND. COM. REP. NO. 1675
                                   Page 2


insurance requirements for licensure.  These contractors will
then hire employees after the license is obtained.
Unfortunately, there is no documentation of the scope of this
abuse.  This fraudulent practice gives dishonest contractors an
unfair advantage in bidding and puts workers at risk.  More study
is necessary to understand its scope and impact.

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee concurs with the intent and purpose
of S.C.R. No. 201, and recommends its adoption.

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



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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