Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Ways and Means, 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 to the Department of Human Resources Development in the amount of $3,055,896 for the payment of workers' compensation claims.

Your Committee finds that $4,993,726 was appropriated to the Department of Human Resources Development pursuant to Act 200, Session Laws of Hawaii 2003, for the payment of workers' compensation claims against the State. However, because current funding levels fail to meet existing and anticipated costs associated with the workers' compensation program, this emergency appropriation is necessary to ensure that the State is capable of fulfilling its obligations under the law. These rising costs include 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.

As affirmed by the record of votes of the members of your Committee on Ways and Means 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 Third Reading.