STAND. COM. REP. NO. 327-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2555
                                     




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. 2555 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 clarify that administrative
expenses for the protection and preservation of the Workers'
Compensation Special Compensation Fund (Fund) shall be paid from
the Fund. 

     Testimony in support of this measure was received from the
Department of Labor and Industrial Relations (DLIR).  DLIR
explained that the workers' compensation law currently provides
for the payment of litigation expenses from the Fund.  Further,
administrative expenses for the protection and preservation of
the Fund should also be paid from the Fund.  For example,
administrative expenses are incurred in:

     (1)  Adjusting claims in delinquent employer cases in which
          the Fund is responsible for benefit payments to
          claimants and payment for medical services; and

     (2)  Processing benefit checks to claimants entitled to
          benefits from the Fund. 


 
 
 
 
                                 STAND. COM. REP. NO. 327-00
                                 Page 2

 
     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. 2555 and recommends that it pass Second Reading 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