Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Labor, to which was referred H.B. No. 2466 entitled:

begs leave to report as follows:

The purpose of this measure is to make an emergency appropriation in the amount of $3,055,896 to the Department of Human Resources Development for the payment of workers' compensation claims.

Testimony in support of this measure was submitted by the Department of Human Resources Development.

Your Committee finds that pursuant to Act 200, Session Laws of Hawaii 2003, funds in the amount of $4,993,726 were appropriated to the Department of Human Resources Development for the payment of workers' compensation claims against the State. Your Committee further finds that, due to the rising costs associated with the workers' compensation program, including increases in the cost of medical care, the maximum weekly compensation rate, and the cost-of-living allowance for claimants receiving permanent total disability benefits, current funding levels fail to meet existing and anticipated costs. Therefore, your Committee determines that this emergency appropriation is necessary to ensure that the State is capable of fulfilling its obligations under the law.

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2466, and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.