CONFERENCE COMMITTEE REP. NO. 142-04

Honolulu, Hawaii

, 2004

RE: H.B. No. 1374

H.D. 2

S.D. 2

C.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 1374, H.D. 2, S.D. 2, entitled:

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

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this bill is to amend Hawaii's workers' compensation law to:

(1) Authorize the Insurance Fraud Investigations Unit of the Department of Commerce and Consumer Affairs (DCCA) to investigate and prosecute workers' compensation fraud relating to self-insured employers;

(2) Entitle a plaintiff who successfully proves a case of workers' compensation insurance fraud to recoupment of payments for medical, vocational rehabilitation, and other services and reimbursement of attorney's fees and costs;

(3) Entitle a defendant who successfully defends a case of workers' compensation insurance fraud to reimbursement of attorney's fees and costs; and

(4) Provide that a person subject to administrative penalties in an action under section 386-98(e), Hawaii Revised Statutes, shall not be subject to double jeopardy under any other subsection.

Your Committee on Conference has amended this bill by:

(1) Clarifying that when charges of fraud are filed and are criminal in nature, a person shall not be entitled to attorney's fees and costs;

(2) Deleting language authorizing the Insurance Fraud Investigations Unit of DCCA to investigate and prosecute workers' compensation fraud relating to self-insured employers;

(3) Inserting language authorizing the Insurance Commissioner of DCCA to investigate complaints and prosecute cases of workers' compensation fraud, provided that the complaint is against an insurance carrier, a self-insured employer, or a fully insured employer;

(4) Inserting a sunset provision of June 30, 2006; and

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

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 1374, H.D. 2, S.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 1374, H.D. 2, S.D. 2, C.D. 1.

 

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________

BRIAN KANNO, Co-Chair

____________________________

MARCUS R. OSHIRO, Co-Chair

____________________________

BRIAN T. TANIGUCHI, Co-Chair

____________________________

DWIGHT Y. TAKAMINE, Co-Chair