HOUSE OF REPRESENTATIVES	H.C.R. NO.	178
TWENTY-FOURTH LEGISLATURE, 2007		H.D. 1
STATE OF HAWAII

HOUSE CONCURRENT

RESOLUTION

requesting a FINANCIAL AND MANAGEMENT AUDIT of the workers' compensation system of the department of human resources development and department of education.

     WHEREAS, the State has long adhered to the public policy that it is in the best interests of our citizenry to protect employees when they are ill or injured; and

     WHEREAS, wage replacement programs such as the Workers' Compensation Law and the Temporary Disability Insurance Law were enacted specifically because the Legislature acknowledged the importance of making employees "whole" during times of illness and injury, not only for the benefit of the worker, but also for the stability of businesses and our economy, and the health and welfare of our people; and

WHEREAS, Hawaii’s workers’ compensation law was established to provide benefits in a prompt and accurate manner to employees who sustain a work-related injury or illness; and

     WHEREAS, the Department of Labor and Industrial Relations (DLIR), through its Disability Compensation Division (Division), has the overall responsibility of administering the workers’ compensation law, including the supervision and execution of prompt and accurate compensation payments; and

     WHEREAS, for injured employees to recover from their work-related injuries and get back to work in a timely manner, the processing of workers' compensation claims must be completed as expeditiously as possible; and

WHEREAS, over the years, numerous concerns have been raised over the administration of workers’ compensation claims by employers, employees, insurers, and healthcare providers; and

WHEREAS, a backlog of open workers' compensation cases has delayed the processing of claims and the rendering of decisions by the Division, prompting DLIR to try to streamline its process and make the filing of claims and dispensing of cases more efficient; and

     WHEREAS, the healthcare community has also raised concerns about the difficulty of providing healthcare in workers' compensation cases due to low reimbursement rates; and

     WHEREAS, the State of Hawaii, especially the Department of Human Resources Development (DHRD) and Department of Education (DOE), employs thousands of individuals, a certain percentage of whom will experience workplace injuries; and

     WHEREAS, questions have been raised about issues and problems arising from the methods used to deal with workers' compensation cases involving government employees and as to whether there is any significant difference in the issues and problems as they affect private sector employees; now, therefore,

     BE IT RESOLVED by the House of Representatives of the Twenty-fourth Legislature of the State of Hawaii, Regular Session of 2007, the Senate concurring, that the Legislative Auditor (Auditor) is requested to conduct a financial and management audit of the workers' compensation system as it relates to state employees under the jurisdiction of DHRD and DOE, and identify any problems or issues that may exist within these systems; and

     BE IT FURTHER RESOLVED that the Auditor is requested to determine if any differences exist between costs associated with the workers' compensation system afforded to government employees and employers, and the workers' compensation system used by private sector employees and employers; and

     BE IT FURTHER RESOLVED that the Auditor submit a report of its findings and recommendations to the Legislature no later than 20 days prior to the convening of the Regular Session of 2008; and

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Legislative Auditor, Director of Human Resources and Development, and Superintendent of Education.

OFFERED BY:

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