Bill Text: HI HB2352 | 2016 | Regular Session | Introduced

Hawaii House Bill 2352 (Prior Session Legislation)

Introduced

Bill Title: Charter Schools; Workers' Compensation

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2016-01-29 - Referred to LAB, EDN, FIN, referral sheet 4 [HB2352 Detail]

Download: Hawaii-2016-HB2352-Introduced.html

HOUSE OF REPRESENTATIVES	H.B. NO.	2352
TWENTY-EIGHTH LEGISLATURE, 2016
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO CHARTER SCHOOLS.

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

SECTION 1. Since the passage of Act 87 in 2005, the department of human resources development has been processing and paying for all of the charter schools workers' compensation claims from HRD 102 (work force attraction, selection, classification, and effectiveness budget program). Prior to Act 87, the department of education was responsible for administering and making payments for charter schools workers' compensation claims. While the charter schools have been paying the department of human resources development a fee of no more than 0.07 per cent of the EDN 600 (charter schools budget program) general fund appropriation for charter schools, as provided for in section 302D-27, Hawaii Revised Statutes, there is no statutory authority under which the department of human resources development can be reimbursed to replenish HRD 102 for payments made for charter schools workers' compensation claims expenses. The 0.07 per cent fee has not been increased since the passage of Act 87 over ten years ago, despite the several across-the-board and step movement salary increases that the department of human resources development has had to pay its employees over those years, including those who administer the charter schools workers' compensation claims.

Between fiscal years 2010 and 2015, the department of human resources development paid a total of $1,998,800 for the charter schools workers' compensation claims � an average of $333,133 per fiscal year. There was no reimbursement to the department of human resources development for the $1,998,800 in expenditures paid. In that same period, charter schools employees filed an average of twenty-eight new claims per year, with a high of forty-eight in fiscal year 2014-2015.

Due in part to the charter schools workers' compensation liabilities, the department of human resources development was forced to obtain from the 2013 legislature an increase in HRD 102 appropriations in the amounts of $457,000 for fiscal year 2013-2014 and $545,000 for fiscal year 2014-2015. The legislature believes that these workers' compensation costs should be more properly borne by the charter schools, over which the department of human resources development has no administrative oversight or control. In that regard, the legislature finds that the charter schools should be authorized to administer and pay their own workers' compensation claims.

The purposes of this Act are to require the charter schools to (1) administer and pay the charter schools workers' compensation claims, and (2) secure the necessary funding to support payment for their workers' compensation liabilities under one of the several options allowed by the Hawaii workers' compensation law, including self-insurance.

SECTION 2. Section 302D-26, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The State shall afford administrative, support, and instructional employees in charter schools full participation in the State's systems for retirement, [~~workers' compensation,~~] unemployment insurance, temporary disability insurance, and health benefits in accordance with the qualification requirements for each."

SECTION 3. Section 302D-27, Hawaii Revised Statutes, is amended to read as follows:

"[[]§302D-27[]] Administration of workers' compensation. [The department of human resources development shall administer workers' compensation claims for employees of charter schools, who shall be covered by the same self-insured workers' compensation system as other public employees. The department of human resources development shall process, investigate, and make payments on claims; provided that:

~~(1)~~ ~~Charter schools shall compile the preliminary claim form and forward it to the department of human resources development; and~~

~~(2)~~ ~~The department of human resources development shall receive no more than 0.07 per cent of the EDN 600 appropriation to process these workers' compensation claims.~~] The charter schools shall secure payment for their workers' compensation liabilities to their employees pursuant to section 386-121."

SECTION 4. Section 386-121, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Employers, except the State, any county or political subdivision of the State, or other public entity within the State[,] that is not a public charter school, shall secure compensation to their employees in one of the following ways:

(1) By insuring and keeping insured the payment of compensation with any stock, mutual, reciprocal, or other insurer authorized to transact the business of workers' compensation insurance in the State;

(2) By depositing and maintaining with the state director of finance security satisfactory to the director of labor and industrial relations securing the payment by the employer of compensation according to the terms of this chapter;

(3) Upon furnishing satisfactory proof to the director of the employer's solvency and financial ability to pay the compensation and benefits herein provided, no insurance or security shall be required, and the employer shall make payments directly to the employer's employees, as they may become entitled to receive the same under the terms and conditions of this chapter;

(4) An employer desiring to maintain security for payment of compensation under this section shall file an application with the director on a form provided for this purpose together with the employer's most current audited annual financial statement;

(5) Where an applicant for self-insurance is a subsidiary and the subsidiary cannot submit an independent current audited annual financial statement, an indemnity agreement approved as to form and content by the director shall be executed by the parent corporation of the subsidiary and submitted with its application;

(6) Each self-insurance authorization shall be effective from the date of issuance until June 30 of each calendar year;

(7) A notice of intention to cancel self-insurance shall be submitted in writing to the director within at least thirty days prior to the effective date of cancellation;

(8) A self-insurance authorization may be revoked by the director for good cause shown upon notification in writing to the self-insurer;

(9) By membership in a workers' compensation self-insurance group with a valid certificate of approval under section 386-194; or

(10) By membership in a workers' compensation group insured by a captive insurer under chapter 431, article 19.

Any person who wilfully misrepresents any fact in order to obtain the benefits of paragraph (3) shall be guilty of a misdemeanor."

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act, upon its approval, shall take effect on July 1, 2016.

INTRODUCED BY:	_____________________________
	BY REQUEST

Report Title:

Charter Schools; Workers' Compensation

Description:

Requires charter schools to administer and pay charter schools workers' compensation claims, and secure necessary funding to support payment for charter schools workers' compensation liabilities under one of the several options allowed by the Hawaii workers' compensation law, including self-insurance. Effective July 1, 2016.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.