STAND. COM. REP. NO.  504

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 519

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committees on Economic Revitalization & Business and Labor & Public Employment, to which was referred H.B. No. 519 entitled:

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

beg 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, National Federation of Independent Business Hawaii, Retail Merchants of Hawaii, and a concerned individual supported this bill.  ILWU Local 142 opposed this bill.  A concerned individual submitted comments.

     As affirmed by the records of votes of the members of your Committees on Economic Revitalization & Business and Labor & Public Employment that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 519 and recommend that it pass Second Reading and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Economic Revitalization & Business and Labor & Public Employment,

____________________________ KARL RHOADS, Chair

____________________________ ANGUS L.K. MCKELVEY, Chair