THE SENATE	S.B. NO.	1236
TWENTY-NINTH LEGISLATURE, 2017		S.D. 2
STATE OF HAWAII		H.D. 1

A BILL FOR AN ACT

 

 

RELATING TO WORKERS' COMPENSATION.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  Act 188, Session Laws of Hawaii 2016, is amended by amending section 2 to read as follows:

     "SECTION 2.  (a)  The auditor shall contract with [an actuarial firm] a suitable entity that has experience conducting workers' compensation closed claims studies in the United States to perform a study of: 

     (1)  Closed claims in the private employment sector in the State; [and]

     (2)  Closed claims involving state employees, including those employed by the department of human resources development, the department of education, and the University of Hawaii system[.]; and

     (3)  The processing time for closed claims.

     (b)  Of the total cost of the study, a portion equal to the appropriation provided for in section 3 of this Act or any subsequent appropriation for the same purpose shall be paid for by an assessment to the workers' compensation insurers, workers' compensation captive insurers, and workers' compensation self-insureds in the State to be determined according to market share of premiums or, in the case of workers' compensation self-insureds, using the current basis to determine special compensation fund assessments.

     (c)  The auditor shall require the study to be completed by November 30, [2017,]       , and the study shall be submitted to the legislature no later than twenty days prior to the convening of the regular session of [2018.]       .

     (d)  Prior to contracting with [an actuarial firm] a suitable entity to perform the study required by this Act, the auditor shall consult and confer with two members of the legislature, one member selected by the president of the senate and one selected by the speaker of the house of representatives.  The two members shall ensure that the [actuarial firm] entity selected and parameters of the study are not biased and do not have an appearance of bias toward any of the numerous stakeholders in the workers' compensation system, including the department of labor and industrial relations, department of human resources development, insurers, attorneys representing employers and employees, mutual benefit societies, health maintenance organizations, and health care providers."

     SECTION 2.  There is appropriated out of the general revenues of the State of Hawaii the sum of $         or so much thereof as may be necessary for fiscal year 2017-2018 and the same sum or so much thereof as may be necessary for fiscal year 2018-2019 for the auditor to contract with a suitable entity to produce a study of closed claims in the State's workers' compensation system as provided for in this Act; provided that no moneys shall be released unless matched dollar-for-dollar by the fees assessed pursuant to section 2(b) of Act 188, Session Laws of Hawaii 2016.

     The sums appropriated shall be expended by the auditor for the purposes of this Act.

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on January 7, 2059.

 

 

Report Title:

Workers' Compensation; Closed Claims; Study; Appropriation

 

Description:

Requires the Auditor to contract with a suitable entity to conduct a study of closed claims in the workers' compensation system, including the processing time for closed claims.  Amends the deadline for completion of the study and the deadline for the legislative report.  Appropriates funds for the study.  (SB1236 HD1)

 

 

 

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