STAND. COM. REP. NO.  1018-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 1969

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1969, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO WORKERS' COMPENSATION,"

begs leave to report as follows:

     The purpose of this bill is to exempt from mandatory workers' compensation coverage services performed by:

     (1)  A partner for a partnership;

     (2)  A partner with at least a 50 percent transferable interest in a limited liability partnership;

     (3)  A member of a limited liability company with at least a 50 percent distributional interest in the company; and

     (4)  A sole proprietor for the sole proprietorship.

     The Department of Labor and Industrial Relations, Hawaii Business League, National Federation of Independent Business, Risk Solution Partners, LLC, The Chamber of Commerce of Hawaii, and a concerned individual testified in support of this bill.  ILWU Local 142 testified in opposition to this measure.  The Hawaii Independent Insurance Agents Association submitted comments.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1969, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair