STAND. COM. REP. NO.  391

Honolulu, Hawaii

                , 2017

RE:   H.B. No. 377

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 377 entitled:

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

begs leave to report as follows:

The purpose of this measure is to ensure that workers' compensation coverage is provided to employees of construction contractors by requiring:

     (1)  County building permit applicants and their subcontractors to have and verify workers' compensation coverage, acceptable self-insurance, or an exemption from coverage; and

     (2)  Coordinated communication between county building permitting agencies and the Director of Labor and Industrial Relations to ensure compliance.  

Hawaii Construction Alliance, Pacific Resource Partnership, and one concerned individual supported this measure.  The Department of Labor and Industrial Relations supported the intent of this measure.  Subcontractors Association of Hawaii and General Contractors Association of Hawaii provided comments.

     Your Committee has amended this measure by:

(1)  Changing the effective date to July 1, 2050, to encourage further discussion; and

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

     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 H.B. No. 377, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 377, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

AARON LING JOHANSON, Chair