STAND. COM. REP. NO.3249
RE: H.B. No. 2526
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Your Committee on Ways and Means, to which was referred H.B. No. 2526 entitled:
"A BILL FOR AN ACT RELATING TO WORKERS' COMPENSATION,"
begs leave to report as follows:
The purpose of this measure is to extend from December to January the deadline for employers to file workers' compensation payment reports with the Department of Labor and Industrial Relations.
Your Committee has amended this measure by deleting its contents and replacing it with the proposed measure that was heard in committee. As amended, the purpose of this measure is to exclude from the definition of "employment" under the workers' compensation law services performed for a limited liability company or a limited liability partnership by a person who owns at least fifty per cent of the company or partnership.
Your Committee finds that the present workers' compensation law excludes from the definition of "employment" services performed for a corporation by an individual who owns at least fifty per cent of the corporation. Your Committee finds that principles of fairness require that if owners of an ordinary corporation have the privilege of being excluded from workers' compensation coverage that same privilege should be extended to members or partners of limited liability companies or partnerships as well.
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 H.B. No. 2526, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2526, S.D. 1.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
BRIAN T. TANIGUCHI, Chair