STAND. COM. REP. NO.  506-16

Honolulu, Hawaii

                , 2016

RE:   H.B. No. 2364

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 2364 entitled:

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

begs leave to report as follows:

The purpose of this measure is to extend the sunset date of Act 25, Session Laws of Hawaii 2014, from June 30, 2016, to June 30, 2017.

     Act 25 allows workers' compensation claim settlements resulting from claims or actions against third parties to be finalized without the approval of the Director of Labor and Industrial Relations.

Your Committee received testimony in support of this measure from the Department of Labor and Industrial Relations, the National Association of Mutual Insurance Companies, the Hawaii Restaurant Association, and the Hawaii Association for Justice.

     Your Committee finds that Act 25 exempts from the approval of the Director of Labor and Industrial Relations workers' compensation compromises that relate to work-related injury that is caused by a third party.  Your Committee further finds that this measure will reduce the overall backlog of workers' compensation cases by accelerating the processing of compromises involving third party liability.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2364 and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ANGUS L.K. McKELVEY, Chair