STAND. COM. REP. NO. 2385

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 2597

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Madam:

 

     Your Committees on Commerce and Consumer Protection and Labor, to which was referred S.B. No. 2597 entitled:

 

"A BILL FOR AN ACT RELATING TO THE HAWAII EMPLOYERS' MUTUAL INSURANCE COMPANY,"

 

beg leave to report as follows:

 

     The purpose of this measure is to ensure the efficient functioning of the Hawaii Employers' Mutual Insurance Company (HEMIC) by facilitating executive succession and ensuring that HEMIC is subject to the same liability standards as all other workers' compensation insurers. 

 

     Your Committees received testimony in support of this measure from the State Insurance Commissioner for the Department of Commerce and Consumer Affairs and Hawaii Employers' Mutual Insurance Company.  Written testimony presented to the Committees may be reviewed on the Legislature's website.

 

     Your Committees find that the provisions of this measure that separate the titles and functions of President and Chief Executive Officer will allow HEMIC to reallocate the duties of its executive management and allow for a smoother transition of executive leadership without creating any new positions.  Your Committees further note that allowing members of HEMIC's Board of Directors to serve more than two nonconsecutive terms will allow HEMIC to retain qualified and experienced Board leadership, which will also assist in ensuring continuity of management during executive transitions. 

 

     Your Committees find that the provisions of this measure that clarify that HEMIC's legal duty to its members is identical to that of other workers' compensation insurers are necessary to ensure that HEMIC is able to operate on the same terms as other workers' compensation insurers.  Your Committees further find that these clarifying provisions may help HEMIC to avoid costly and unnecessary litigation in the future. 

 

     As affirmed by the records of votes of the members of your Committees on Commerce and Consumer Protection and Labor that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2597 and recommend that it pass Second Reading and be placed on the calendar for Third Reading.

 

Respectfully submitted on behalf of the members of the Committees on Commerce and Consumer Protection and Labor,

 

____________________________

DWIGHT Y. TAKAMINE, Chair

 

____________________________

ROSALYN H. BAKER, Chair