2017-03-13 Letter to Clarence Nishihara re HB 377, HD1 Relating to Worker's Compensation

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Harry Kim Mayor Wil Okabe Managing Dtrector Barbara J. Kussow Deputy Marwging Director ltaunfv of PAUZ 'l (offrt of thrffinVor 25 Aupuni Street, Suite 2603 • Hilo, Hawaii 96720 (808) 961-8211 • Fax (808) 961-6553 KONA 74-5044 Ane Keohokalole Hwy, Bldg C . Kadua-Kona Havon'i 96740 (808)323-4444 . Fax(808)323-4440 March 13, 2017 Senator Clarence Nishihara Public Safety, Intergovernmental and Military Affairs Hawai'i State Capitol Honolulu, HI 96813 Dear Chair Nishihara and members: RE: HS 577, HD 1 Relating to Worker's Compensation Thank you for this opportunity to testify against HB 377, HD1. HB 377, HD1 would require, as a condition for the issuance of a building permit, that the County receive a signed declaration under penalty of perjury that the building permit applicants and their subcontractors have workers' compensation coverageirnsurance, or an exemption from coverage. The legislation would also require coordinated communication between county permitting agencies and the Director of Labor and Industrial Relations, to ensure compliance. "Communication" means a county would submit the signed declarations to the State within three business days of their receipt. Then, if notified by the State that a permit applicant's insurance has been canceled or suspended, the County would have to suspend the building permit until the applicant obtains insurance coverage. This legislation would be a unilateral imposition on the counties to assume what clearly is a state function/responsibility. The legislation adds accounting, reporting, and compliance requirements without any monetary compensation to the counties for the increased workload. The legislation would add cost and time delays to an already burdensome building permitting process, at a time when the Governor and the county mayors are trying to create more affordable housing construction opportunities. County of Hawaii is an Equal Opportunity Provider and Employer