STAND. COM. REP. NO.  1017-12

Honolulu, Hawaii

                , 2012

RE:   S.B. No. 2846

      S.D. 1

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred S.B. No. 2846, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to improve the effectiveness and efficiency of government by allowing the Director of Labor and Industrial Relations to accept the notice of employers' workers' compensation insurance from third party agencies in a manner and form approved by the Director.

The Department of Labor and Industrial Relations, Plumbers and Fitters Union, Local 675, ILWU Local 142, Pacific Resource Partnership, and a concerned individual testified in support of this measure.

     Currently, all workers' compensation insurance coverage information is submitted to the Department of Labor and Industrial Relations on paper forms which are then manually inputted into the Department's information system.  However, budget cuts over the past several years due to lagging economic conditions have resulted in staff reductions and reduced the Department's capabilities of inputting the insurance information data in a timely manner.  This delay often renders the information system's data reports unreliable.  To address this situation, the Department of Labor and Industrial Relations plans to accept insurance information electronically thus making the inputting of data easier and eliminating the labor-intensive process currently being employed.

     Your Committee has amended this measure by changing its effective date to upon its approval.

     As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2846, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2846, S.D. 1, H.D. 1, and be referred to the Committee on Economic Revitalization & Business.

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

____________________________

KARL RHOADS, Chair