CONFERENCE COMMITTEE REP. NO. 165-16

Honolulu, Hawaii

                 , 2016

RE:    H.B. No. 2715

       H.D. 2

       S.D. 1

       C.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sirs:

     Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 2715, H.D. 2, S.D. 1, entitled:

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

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this measure is to require the Department of Labor and Industrial Relations to contract with an experienced actuarial firm to perform a study on closed claims in the State's workers' compensation system.

     Your Committee on Conference amended this measure by:

     (1)  Requiring the Auditor, rather than the Department of Labor and Industrial Relations, to contract with an experienced actuarial firm to perform the study;

     (2)  Requiring the Auditor, prior to contracting with the actuarial firm, to consult and confer with two members of the Legislature, who are selected by the Speaker of the House of Representatives and the President of the Senate, respectively, and who shall ensure that the firm selected and the parameters of the study are not biased toward the various stakeholders;

     (3)  Inserting an appropriation amount of $150,000 for the Auditor to contract with the actuarial firm to be matched by assessments from insurers and self-insureds;

     (4)  Changing the effective date to July 1, 2016; and

     (5)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 2715, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 2715, H.D. 2, S.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ GILBERT S.C. KEITH-AGARAN, Chair	____________________________ MARK M. NAKASHIMA, Co-Chair
____________________________ BRICKWOOD GALUTERIA, Co-Chair	____________________________ ANGUS L.K. MCKELVEY, Co-Chair
	____________________________ JARRETT KEOHOKALOLE, Co-Chair