SB3085

THE SENATE	S.B. NO.	3085
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII

A BILL FOR AN ACT

SECTION 1. The purpose of this Act is to amend the purpose of the special fund for disability benefits to allow for the use of currently available funds for automation purposes, and to appropriate $5,000,000 from the special fund for disability benefits for automation of the department of labor and industrial relations' disability compensation division, which includes the workers' compensation, prepaid health care, and temporary disability insurance programs. Automation would increase efficiency and entail providing employers, carriers, employees, and doctors the ability to submit their required forms via internet.

For several years, the state auditor has expressed concern in regards to the amount of money the special fund is collecting versus the amount of funds it actually needs to fulfill its legislative mandate. This offers the opportunity of using funds paid by employers to automate the disability compensation fund, which would directly improve the department's services, while lowering business costs. These funds were paid by businesses and it is prudent we use these funds to their benefit.

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 which shall be administered by the director exclusively for the purposes of this chapter[.] and for the automation of the workers' compensation, temporary disability insurance, and prepaid health care programs. 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. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

Section 4. There is appropriated out of the special fund for disability benefits the sum of $5,000,000, or so much thereof as may be necessary for fiscal year 2008-2009, for the automation of the workers' compensation, temporary disability insurance, and prepaid health care programs. The sums appropriated shall be expended by the department of labor and industrial relations.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:

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BY REQUEST