STAND. COM. REP. NO. 840-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2520
                                     H.D. 2




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No.
2520, H.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to assist injured workers return
to work while helping businesses control costs by:

     (1)  Allowing a self-insured or insured employer to provide
          job placement within its organization pursuant to an
          approved return-to-work plan;

     (2)  Allowing a qualified employee to select a vocational
          rehabilitation provider if the employer elects not to
          or is unable to provide job placement;

     (3)  Utilizing rehabilitation services on the employee's
          home island if possible;

     (4)  Allowing for the purchase of tools or equipment
          necessary for the training, but not for items
          associated with starting a business; and 

     (5)  Limiting the fees charged for vocational rehabilitation
          services to a reasonable and customary amount.


 
 
 
 
                                 STAND. COM. REP. NO. 840-00
                                 Page 2

 
     The Department of Human Resources Development, Building
Industry Association of Hawaii, Argonaut Insurance Company,
Small-Business Economic Revival Force, and Hawaii Employers'
Mutual Insurance Company, Inc. supported this bill. 

     Your Committee has amended this bill by making technical,
nonsubstantive changes for purposes of style and clarity.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
2520, H.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as H.B. No. 2520, H.D.
2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair