STAND. COM. REP. NO. 569

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1236

       S.D. 2

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 1236, S.D. 1, entitled:

 

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

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to amend Act 188, Session Laws of Hawaii 2016, to facilitate completion of the study of closed workers' compensation claims mandated by the Act. 

 

More specifically, this measure:

 

(1)  Stipulates that the Auditor will contract with a suitable entity, rather than an actuarial firm, to perform a study of closed claims in the workers' compensation system;

 

(2)  Requires the study to include the processing time for closed claims;

 

(3)  Extends the deadline for completion of the study by one year to November 30, 2018, and the deadline to submit the study to the Legislature to twenty days prior to the convening of the Regular Session of 2019; and

 

(4)  Makes an appropriation for the study, contingent on a dollar-for-dollar match by fees assessed to workers' compensation insurers, workers' compensation captive insurers, and workers' compensation self-insureds.

 

     Your Committee received written comments in support of this measure from the Department of Labor and Industrial Relations, Office of the Auditor, and ILWU Local 142.

 

     Your Committee finds that in order to make reasoned decisions on amending the State's workers' compensation laws, the Legislature enacted Act 188, Session Laws of Hawaii 2016, which requires the Auditor to contract with an actuarial firm to conduct a study of closed workers' compensation claims to be completed by November 30, 2017.  This study will provide the Legislature with valuable information on how to optimize the processing of claims and delivery of workers' compensation benefits.  Your Committee further finds that this measure requires additional information to be included in the study and therefore believes that the deadline for the study's completion should be extended.

 

     Your Committee has amended this measure by changing the amount of the appropriation from $150,000 to an unspecified amount to facilitate further discussion.

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1236, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1236, S.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

________________________________

JILL N. TOKUDA, Chair