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Mike Gabbard <br />March 13, 2017 <br />Page 2 <br />Workers' comp insurance is a complex issue based on the nature of the work <br />being performed and risk/danger posed to the worker. The counties do not have the <br />expertise to determine if the applicants' insurance coverage/signed declaration is <br />appropriate for the various types of work being performed under the building permit. HB <br />377, HD1 seems to recognize that it must be the State that makes the determination <br />whether proper insurance is in place, but at some point will the State require the <br />counties to become experts in workers' comp insurance? <br />Although HB 377, HD1 would seem to impose only a minor burden on the <br />counties, we are concerned about the timeliness of the verification process by the DLIR <br />that could have a significant effect on a county's building permit process. It could result <br />in a suspension of a building permit once work has commenced, and could be cause for <br />much aggravation and confusion that the county will ultimately have to deal with. This <br />could include a stoppage of work that leaves site conditions in an unsafe manner, or <br />improvements that will be damaged as a result of exposure to the elements. Who will <br />be liable should public/worker safety be compromised, or damaged personal property <br />occur because a stop -work order is issued as a result of lack of proper insurance <br />coverage? <br />At a minimum, HB 377, HD1 should be amended to provide explicitly that the <br />counties will not be liable for injury or damages resulting from suspending a permit <br />based on DLIR's directive. <br />Thank you for considering our testimony and the concerns that we have <br />expressed. <br />submitted, <br />U \ <br />Harry Kim <br />Mayor <br />County of Hawaf i is an Equal Opportunity Provider and Employer <br />