Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committees on Consumer Protection and Commerce and Judiciary, to which was referred H.B. No. 884 entitled:

beg leave to report as follows:

The purpose of this bill is to clarify the law relating to administrative procedure in workers' compensation fraud cases by providing an appropriate standard of proof in the prosecution of these cases. Specifically, this bill:

Testimony in support of this bill was submitted by the Department of Labor and Industrial Relations (DLIR), the Hawaii Insurers Council, and Hawaii Employers' Mutual Insurance Company, Inc. ILWU Local 142 submitted testimony in opposition to this bill.

Your Committees find that to obtain an administrative remedy for alleged workers' compensation fraud, a petitioner must file a written complaint with DLIR. An administrative hearing is held and a written decision is rendered by DLIR based on the evidence, which may be appealed to the Appeals Board.

Your Committees further find that under the current statute, the standard of proof is not specified. This bill would thus eliminate any confusion regarding the burden of proof in workers' compensation fraud claims.

As affirmed by the records of votes of the members of your Committees on Consumer Protection and Commerce and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 884 and recommend that it pass Second Reading and be placed on the calendar for Third Reading.