STAND. COM. REP. NO.  694

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 519

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 519 entitled:

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

begs leave to report as follows:

     The purpose of this bill is to exclude from the definition of "employment" under the workers' compensation law services performed for:

     (1)  A limited liability company by a member who is an individual with a distributional interest of at least 50 percent in the company;

     (2)  A partnership by an individual who is a partner of the partnership;

     (3)  A limited liability partnership by an individual who is a partner of the limited liability partnership with a transferable interest in the partnership of at least 50 percent; and

     (4)  A sole proprietorship by its sole proprietor.

     The Chamber of Commerce of Hawaii, Hawaii Independent Insurance Agents Association, National Federation of Independent Business Hawaii, Retail Merchants of Hawaii, and Integrated Economic Solutions, LLC, testified in support of this bill.  ILWU Local 142 testified in opposition to this bill.

     Your Committee has amended this bill by making technical, nonsubstantive amendments for clarity, consistency, and style.

     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. 519, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 519, H.D. 1.

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

____________________________

MARCUS R. OSHIRO, Chair