STAND. COM. REP. NO. 415-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2554
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Labor and Public Employment, to which was
referred H.B. No. 2554 entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to uniformly require Special
Compensation Fund (SCF) contribution for preexisting injuries by:

     (1)  Applying the 32-week threshold for triggering
          contribution from the SCF to permanent partial
          disability cases, and not only cases of death or
          permanent total disability;

     (2)  Repealing application of section 386-33(a) and (b),
          Hawaii Revised Statutes (HRS), to all cases where the
          injury occurs on or after May 15, 1982, and combines
          with the previous disability to result in a greater
          disability or death; and

     (3)  Repealing application of section 386-33(a)(1), HRS, to
          all cases where the injury occurs on or after July 1,
          1995, and combines with the previous disability from a
          compensable injury to result in a greater permanent
          partial disability.

     The Department of Labor and Industrial Relations testified
in favor of this bill.  The ILWU Local 142 testified against the
bill as drafted and recommended retaining the provision applying

 
 
                                 STAND. COM. REP. NO. 415-00
                                 Page 2

 
section 386-33(a)(1), HRS, to all cases where the injury occurs
on or after July 1, 1995.

     Currently, the 32-week requirement for subsequent injuries
that increase disability in section 386-33, HRS, only applies to
cases of permanent total disability or death.  Employees with a
permanent partial disability are now exempt from the 32-week
requirement.

     As a result, contributions must be made from the SCF in
cases of permanent partial disability, even though the 32-week
requirement for pre-existing disability is not met.  If not
corrected, this inconsistency will result in increased litigation
and confusion in cases of permanent total disability or death
occurring after permanent partial disability is awarded.

     ILWU Local 142 opposed repealing application of section 386-
33(a)(1), HRS, to all cases where the injury occurs on or after
July 1, 1995.  Workers injured before July 1, 1995, are now
entitled to claim the full and true extent of their permanent
disability for each of the successive injuries they suffer
without their permanent disability being offset because they had
prior awards of permanent partial disability.  ILWU Local 142
objected to retroactively changing the ground rules for computing
permanent disability and depriving injury victims of compensation
to which they would have been entitled.

     Upon further discussion, your Committee finds that changes
suggested by the ILWU Local 142 are acceptable to your Committee
and the Department of Labor and Industrial Relations.
Accordingly, your Committee has amended this bill by retaining
the provision applying section 386-33(a)(1), HRS, to all cases
where the injury occurs on or after July 1, 1995, and combines
with the previous disability from a compensable injury to result
in a greater permanent partial disability.

     As affirmed by the record of votes of the members of your
Committee on Labor and Public Employment that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 2554, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as H.B. No. 2554, H.D.
1, and be referred to the Committee on Consumer Protection and
Commerce.


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



                                   ______________________________
                                   TERRY NUI YOSHINAGA, Chair