STAND. COM. REP. NO. 417-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2520
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Labor and Public Employment, to which was
referred H.B. No. 2520 entitled: 

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

begs leave to report as follows:
     
     The purpose of this bill is to assist injured workers return
to work while helping businesses control costs by:

     (1)  Allowing a self-insured or insured employer to provide
          job placement within its organization pursuant to an
          approved return to work plan;

     (2)  Allowing a qualified employee to select a vocational
          rehabilitation provider if the employer elects not to
          or is unable to provide job placement;

     (3)  Utilizing rehabilitation services on the employee's
          home island where possible;

     (4)  Allowing for the purchase of tools or equipment
          necessary for training but not for items associated
          with starting a business; and

     (5)  Limiting the fees charged for vocational rehabilitation
          services to a reasonable and customary amount.

     The Department of Human Resources Development, the
Department of Human Resources of the City and County of Honolulu,

 
 
                                 STAND. COM. REP. NO. 417-00
                                 Page 2

 
Argonaut Insurance Company, Small-Business Economic Revival
Force, and the Building Industry Association of Hawaii testified
in support of this bill.

     The ILWU Local 142, the National Association of
Rehabilitation Professionals, and concerned citizens testified in
opposition to this bill.

     Your Committee has amended this bill by making technical,
nonsubstantive amendments for purposes of clarity and style.

     As affirmed by the record of votes of the members of your
Committee on Labor and Public Employment that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 2520, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as H.B. No. 2520, H.D.
1, and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Labor and Public
                                   Employment,



                                   ______________________________
                                   TERRY NUI YOSHINAGA, Chair