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 S.B. No. 2941 entitled:

begs leave to report as follows:

The purpose of this measure is to make an emergency appropriation of $3,055,896 for fiscal year 2003-2004 for the state workers' compensation program.

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

Your Committee finds that insufficient funding exists to fund the payment of claims against the State under the workers' compensation program. Your Committee further finds that although $4,993,726 was appropriated to the Department of Human Resources Development, pursuant to Act 200, Session Laws of Hawaii 2003, to fund the payment of workers' compensation claims against the State, this appropriation was inadequate due to numerous factors, 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. Therefore, your Committee determines that an emergency appropriation is necessary to ensure that the State maintains its ability to fulfill its obligations under the Workers' Compensation 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 S.B. No. 2941 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.