STAND. COM. REP. NO. 3391

                                   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 Ways and Means, 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 bill is to authorize payment of
administrative expenses for the protection and preservation of
the workers' compensation special compensation fund (fund) to be
paid from the fund.  The measure also appropriates $282,595 from
the fund to carry out the purpose of the fund, including the
hiring of six full-time equivalent permanent positions.

     The special compensation fund currently is authorized to pay
litigation expenses in any action brought on behalf of or against
the fund.  However, the Department of Labor and Industrial
Relations incurs additional expenses relating to claims adjusting
in delinquent employer cases and in processing benefit checks to
claimants.

     Your Committee finds that authorizing the special
compensation fund to pay these administrative expenses serves the
fund's purpose of administering worker's compensation claims. 

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your

 
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                                   STAND. COM. REP. NO. 3391
                                   Page 2


Committee is in accord with the intent and purpose of H.B. No.
2555, H.D. 1, and recommends that it pass Third Reading.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
a                                                      HB2555 HD1