STAND. COM. REP. NO.  1139-10

Honolulu, Hawaii

                , 2010

RE:   S.B. No. 2597

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Sir:

     Your Committees on Consumer Protection & Commerce and Judiciary, to which was referred S.B. No. 2597, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII EMPLOYERS' MUTUAL INSURANCE COMPANY,"

beg leave to report as follows:

     The purpose of this bill is to ensure the efficient functioning of the Hawaii Employers' Mutual Insurance Company (HEMIC) by, among other things:

     (1)  Allowing members of HEMIC's Board of Directors to serve more than two nonconsecutive terms;

     (2)  Separating the titles and functions of President and Chief Executive Officer of HEMIC; and

     (3)  Ensuring that HEMIC is subject to the same liability standards as all other workers' compensation insurers.

     The Department of Commerce and Consumer Affairs, HEMIC, Hawaii Injured Worker's Alliance, and a concerned individual testified in support of this bill.

     As affirmed by the records of votes of the members of your Committees on Consumer Protection & Commerce and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2597, H.D. 1, and recommend that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committees on Consumer Protection & Commerce and Judiciary,

____________________________ JON RIKI KARAMATSU, Chair

____________________________ ROBERT N. HERKES, Chair