Allows the use of available funds for automation purposes. Appropriates $5 million dollars from the Special Fund for Disability Benefits for automation of the Disability Compensation Division.

A BILL FOR AN ACT

SECTION 1. The legislature finds that there is a need to upgrade the computer systems and software utilized by the disability compensation division of the department of labor and industrial relations to enhance the efficiency of processing workers' compensation claims and to ensure that injured employees will receive their compensation on a timely basis.

The purpose of this Act is to provide a dual purpose to the special fund for disability benefits to allow for excess funds to be used in the aforementioned upgrading designed to benefit the state and Hawaii's employers. This Act appropriates funds for the purchase and installation of computers and software for the disability compensation division of the department of labor and industrial relations.

SECTION 2. Section 392-61, Hawaii Revised Statutes, is amended to read as follows:

"[[]§392-61[]] Establishment of special fund for disability benefits. There is established in the treasury of the State, separate and apart from all public moneys or funds of the State, a special fund for disability benefits and equipment expenditures to improve the disability compensation division's administration of benefits which shall be administered by the director exclusively for the purposes of this chapter. All contributions pursuant to this part shall be paid into the fund and all benefits payable under this part shall be paid from the fund. The fund shall consist of (1) all contributions collected pursuant to this part, together with any interest thereon; (2) all fines and penalties for the fund pursuant to this chapter; (3) all moneys collected by way of subrogation; (4) interest earned on any moneys in the fund; (5) any property or securities acquired through the use of moneys belonging to the fund; (6) all earnings of such property and securities; and (7) all other moneys received for the fund from any source."

SECTION 3. There is appropriated out of the special fund for disability benefits the sum of $2,500,000 or so much thereof as may be necessary for fiscal years 2005-2006, and the same sum, or so much therefore as may be necessary for fiscal year 2006-2007, to facilitate the processing of workers' compensation claims in the State; provided that the sum shall be used for the purchase, installation, programming and maintenance of computers and software for the disability compensation division.

The sum appropriated shall be expended by the department of labor and industrial relations for the purposes of this Act.

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2005.