STAND. COM. REP. NO. 2927

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2555
                                        H.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Labor and Environment, to which was
referred H.B. No. 2555, H.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to allow payment of
administrative expenses for the protection and preservation of
the Workers' Compensation Special Compensation Fund (Fund) from
the fund.  This measure also appropriates $282,595 to the Fund
for six full-time equivalent positions.

     Testimony in support of this measure was received from the
Department of Labor and Industrial Relations (DLIR) and the
Hawaii Employers' Mutual Insurance Company, Inc.

     Your Committe finds that currently, the workers'
compensation law provides for payment of litigation expenses from
the Fund.  According to DLIR testimony, administrative expenses
are also incurred relating to claims adjusting in delinquent
employer cases in which the Fund is responsible for benefit
payments to claimants and payment for medical services.  Further
administrative expenses are also incurred in processing benefit
checks to claimants who by the workers' compensation law are
entitled to benefits from the Fund.

     Your Committee finds that this measure allowing these
administrative expenses to be paid from the Fund serves the

 
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                                   STAND. COM. REP. NO. 2927
                                   Page 2


purposes of the Fund in administering workers' compensation
claims.

     As affirmed by the record of votes of the members of your
Committee on Labor and Environment that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 2555, H.D. 1, and recommends that it pass Second
Reading and be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Labor and
                                   Environment,



                                   ______________________________
                                   BOB NAKATA, Chair

 
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