Report Title:

PEHF; Employee Organization and Exclusive Representative

 

Description:

Adds definitions of "employer organization" and "exclusive representative". Requires public employees to join health plan maintained by their union.

 

THE SENATE

S.B. NO.

1436

TWENTY-FIRST LEGISLATURE, 2001

  

STATE OF HAWAII

  

 

A BILL FOR AN ACT

 

relating to the public employees health fund.

 

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

SECTION 1. Section 87-1, Hawaii Revised Statutes, is amended to read as follows:

"§87-1 Definitions. As used in this chapter:

(1) "Board" means the board of trustees as described in section 87-11;

(2) "Carrier" means a voluntary association, corporation, partnership, or organization engaged in providing, paying for, arranging for, or reimbursing the cost of health or long-term care services under group insurance contracts or medical, hospital, or dental services agreements;

(3) "Contributions" means money payments made to the fund, employee organization, or exclusive representative by the State or the several counties or an employee-beneficiary or qualified-beneficiary;

(4) "Dependent-beneficiary" means an employee-beneficiary's spouse and any unmarried child, including an adopted child, stepchild, foster child, or recognized natural child who lives with the employee-beneficiary, deemed eligible by the board to receive health or dental services of a health benefits plan;

(5) "Employee" means an employee or officer of the state or county government or the legislature,

(A) Including:

(i) An elective officer or a person who has served as a member of the legislature for at least ten years;

(ii) A per diem employee;

(iii) An officer or employee under an authorized leave of absence;

(iv) An employee of the Hawaii national guard although paid from federal funds;

(v) A retired member of the employees' retirement system, the county pension system, or the police, firefighters, or bandsmen pension system of the State or county;

(vi) A salaried and full-time member of a board, commission, or agency appointed by the governor or the mayor of a county; and

(vii) A person employed by contract for a period not exceeding one year, where the director of human resources development, personnel services, or civil service has certified that the service is essential or needed in the public interest and that, because of circumstances surrounding its fulfillment, personnel to perform the service cannot be obtained through normal civil service recruitment procedures,

(B) But excluding:

(i) A designated beneficiary of a retired member of the employees' retirement system, the county pension system, or the police, firefighters, or bandsmen pension system of the State or county;

(ii) Except as allowed under [[]paragraph[]] (5)(A)(vii), a person employed temporarily on a fee or contract basis; and

(iii) A person employed for less than three months and whose employment is less than one-half of a full-time equivalent position.

(6) "Employee-beneficiary" means an employee, the beneficiary of an employee who is killed in the performance of the employee's duty, an employee who retired prior to the establishment of the fund, or the beneficiary of a retired member of the employees' retirement system, a county pension system, or a police, firefighters, or bandsmen pension system of the State or county, upon the death of the retired member and, which beneficiary, if a child, does not marry, or if a surviving spouse, does not remarry; provided that for the purposes of this paragraph, "family member" means the deceased retired member's or employee's spouse and unmarried child under the age of nineteen years (including a legally adopted child and a stepchild or recognized natural child who lives with the deceased retired member or employee in a regular parent-child relationship), or unmarried child regardless of age who is incapable of self-support because of a mental or physical incapacity which existed prior to the unmarried child's reaching the age of nineteen years; and provided further that the employee, the employee's beneficiary, or the beneficiary of the deceased retired member is deemed eligible by the board to receive health or dental services of a health benefits plan or a long-term care benefits plan;

(7) "Employee organization" means any organization of any kind in which public employees participate and which exists for the primary purpose of dealing with public employers concerning grievances, labor disputes, wages, hours, amounts of contributions by the State and counties to the Hawaii public employees health fund, and other terms and conditions of employment of pubic employees;

(8) "Exclusive representative" means the employee organization, which as a result of certification under chapter 89, has the right to be the collective bargaining agent of all employees in an appropriate bargaining unit without discrimination and without regard to employee organization membership;

    [(7)] (9) "Fund" means the trust fund described in section 87-2;

    [(8)] (10) "Health benefits plan" means (A) a group insurance contract or medical, hospital, surgical, prescribed drugs, vision, or dental service agreement in which a carrier agrees to provide, pay for, arrange for, or reimburse the cost of medical, hospital, surgical, prescribed drugs, vision, or dental services as determined by the board; or (B) a similar schedule of benefits established by the board and provided through the fund on a self-insured basis;

    [(9)] (11) "Long-term care benefits plan" means (A) a group insurance contract or service agreement in which a carrier agrees to provide, pay for, arrange for, or reimburse the cost of long-term care benefits as determined by the board, or (B) a similar schedule of benefits established by the board and provided through the fund on a self-insured basis;

   [(10)] (12) "Periodic charge" means the periodic payment by the board to a carrier for any health benefits, or long-term care benefits plan;

   [(11)] (13) "Qualified-beneficiary" means, for purposes of the long-term care benefits plan, a former employee or an employee who is not eligible for benefits due to a reduction in work hours including the employee's spouse or a divorced spouse of an employee or retiree provided the person was enrolled in the plan prior to loss of benefits; and

   [(12)] (14) "Trustee" means a trustee of the board of trustees as described in section 87-11."

SECTION 2. Section 87-3, Hawaii Revised Statutes, is amended to read as follows:

"§87-3 Purpose of the fund. (a) The fund shall be used for the purpose of providing employee-beneficiaries and dependent-beneficiaries with a health benefits plan and a long-term care benefits plan; provided that the fund, including rate credits or reimbursements from any carrier or self-insured plan or any earning or interest derived therefrom, may be used to stabilize health benefits plan or long-term care benefits plan rates and with approval of the legislature through appropriation of funds for other expenses necessary to effectuate these purposes. Notwithstanding any law to the contrary, any rate credit or reimbursement from any carrier or self-insured plan in excess of funds used to stabilize health benefits plan or long-term care benefits plan costs, and for other expenses authorized by the legislature or any earning or interest derived therefrom shall be [returned to the State or the county for deposit into the appropriate general fund] retained in the fund, employee organization, or the exclusive representative if the moneys are returned from:

(1) A plan that provides health benefits to retirees or the surviving spouses of deceased retirees or employees killed in the performance of their duty whose coverage is financed in whole or in part by the State or by the county; or

(2) A plan that provides health benefits to employees; provided that the amount [returned to the general fund] retained shall be only that portion financed by the [State or by the county] fund, employee organization, or exclusive representative on behalf of the employee.

(b) To the extent that contributions are provided for group life insurance benefits in sections 87-4 and 87-4.5, the fund shall also be used for the purpose of providing group life insurance benefits to employees.

(c) To the extent that contributions are received from employee-beneficiaries and qualified-beneficiaries for long-term care insurance benefits under section 87-23.6, the fund shall also be used for the purpose of providing long-term care insurance benefits to eligible participants.

(d) The fund and exclusive representatives may assist the State and the counties to implement and administer cafeteria plans authorized under section 125 of the Internal Revenue Code of 1986, as amended, and under part II of chapter 78."

SECTION 3. Section 87-4, Hawaii Revised Statutes, is amended to read as follows:

"§87-4 State and county contributions to the fund. (a) The State through the department of budget and finance and the several counties through their respective departments of finance shall pay to the fund, employee organization, or exclusive representative a monthly contribution equal to the amount established under chapter 89C or specified in the applicable public sector collective bargaining agreement, whichever is appropriate, for each of their respective employee-beneficiaries and employee-beneficiaries with dependent-beneficiaries, which shall be used toward the payment of costs of a health benefits plan; provided that the monthly contribution shall not exceed the actual cost of a health benefits plan. If both husband and wife are employee-beneficiaries, the total contribution by the State or the appropriate county shall not exceed the monthly contribution of a family plan for both of them. If, however, the State or any of the several counties establish cafeteria plans in accordance with section 125 of the Internal Revenue Code of 1986, as amended, and part II of chapter 78, the monthly contribution to the fund, employee organization, or exclusive representative for those employee-beneficiaries who participate in a cafeteria plan shall be made through the cafeteria plan. In this event, the payments made by the State or the counties shall include the State's and the counties' respective contributions to the fund, employee organization, or exclusive representative and the employee-beneficiary's share of the cost of the health benefits plan selected and authorized by the employee-beneficiary through the cafeteria plan.

(b) The State through the department of budget and finance and the several counties through their respective departments of finance shall pay to the fund, employee organization, or exclusive representative a monthly contribution equal to the amount established under chapter 89C or specified in the applicable public sector collective bargaining agreement, whichever is appropriate, for each child who has not attained the age of nineteen of all employee-beneficiaries who are enrolled for dental benefits. The contributions shall be used towards the payment of costs of dental benefits of a health benefits plan. Notwithstanding any provisions to the contrary, no part of the fund shall be used to finance the contributions except a rate credit or reimbursement or earnings or interest therefrom received by the fund or general revenues appropriated for that purpose.

(c) The State through the department of budget and finance and the several counties through their respective departments of finance shall pay to the fund, employee organization, or exclusive representative a monthly contribution equal to the amount established under chapter 89C or specified in the applicable public sector collective bargaining agreement, whichever is applicable, for each of their respective employees, to be used towards the payment of group life insurance benefits for each employee.

(d) The several counties through their respective departments of finance shall annually reimburse the State no later than December 30 of each fiscal year for their respective pro rata share of the cost of administering the fund for the fiscal year for the benefit of their employee-beneficiaries and dependent-beneficiaries. Each county's pro rata share shall be determined by allocating the amount appropriated for administering the fund for the fiscal year, after excluding therefrom state and county contributions for health and group life insurance benefits, in the same proportion as the aggregate annual amount of state and county contributions for such benefits as of October 31 of the preceding fiscal year. The amount of any excess or deficiency required to administer the fund shall be subtracted from or added to, as the case may be, the amount due from each county for the succeeding fiscal year.

(e) The State through the department of budget and finance and the several counties through their respective departments of finance shall advance the amount of their respective employee-beneficiaries contributions to the fund, employee organization, or exclusive representative on or before the first day of each month.

(f) Contributions made by the State or the several counties shall not be considered as wages or salary of an employee-beneficiary, and no employee-beneficiary shall have any vested right in or be entitled to receive any part of any contribution made to the fund[.], employee organization, or exclusive representative."

SECTION 4. Section 87-4.5, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (c) to read:

"(c) The State through the department of budget and finance and the several counties through their respective departments of finance shall pay to the fund, employee organization, or exclusive representative a monthly contribution equal to the total monthly premium for each child who has not attained the age of nineteen of all employee-beneficiaries who are enrolled in [the fund's] a dental plan for children under this section.

2. By amending subsections (f) and (g) to read:

"(f) The State through the department of budget and finance and the several counties through their respective departments of finance shall advance the amount of their respective employee-beneficiaries' contributions to the fund, employee organization, or exclusive representative on or before the first day of each month.

(g) Contributions made by the State or the several counties shall not be considered as wages or salary of an employee-beneficiary, and no employee-beneficiary shall have any vested right in or be entitled to receive any part of any contribution made to the fund[.], employee organization, or exclusive representative."

SECTION 5. Section 87-4.6, Hawaii Revised Statutes, is amended as follows:

1. By amending subsections (c) and (d) to read:

"(c) The State, through the department of budget and finance and the several counties through their respective departments of finance, shall pay to the fund, employee organization, or exclusive representative a monthly contribution equal to one-half of the retired employee's monthly medicare or nonmedicare premium for the following benefits for retired employees with ten or more years but fewer than fifteen years of service; seventy-five per cent of the retired employee's monthly medicare or nonmedicare premium for the following benefits for retired employees with at least fifteen but fewer than twenty-five years of service:

(1) For hospital, medical, and surgical benefits of a health benefits plan for each of their respective employee-beneficiaries or their respective employee-beneficiaries and their dependent-beneficiaries enrolled under this section;

(2) For prescription drug benefits of a health benefits plan for each of their respective employee-beneficiaries or their respective employee-beneficiaries and their dependent-beneficiaries enrolled under this section;

(3) For vision care benefits of a health benefits plan for each of their respective employee-beneficiaries or their respective employee-beneficiaries and their dependent-beneficiaries enrolled under this section; and

(4) For adult dental benefits of a health benefits plan for each of their respective employee-beneficiaries or their respective employee-beneficiaries and their spouses enrolled under this section.

If both husband and wife are employee-beneficiaries, the total contribution by the State or the appropriate county, after an employee's retirement pursuant to this section, shall not exceed the monthly contribution of a family plan for both of them.

(d) The State, through the department of budget and finance and the several counties through their respective departments of finance, after an employee's retirement pursuant to this section, shall pay to the fund, employee organization, or exclusive representative a monthly contribution equal to the total monthly premium for each child who has not attained the age of nineteen of all employee-beneficiaries who are enrolled in [the fund's] a dental plan for children under this section.

2. By amending subsections (g) and (h) to read:

"(g) The State, through the department of budget and finance and the several counties through their respective departments of finance, shall advance the amount of their respective employee-beneficiaries' contributions to the fund, employee organization, or exclusive representative on or before the first day of each month.

(h) Contributions made by the State or the several counties shall not be considered as wages or salary of an employee-beneficiary, and no employee-beneficiary shall have any vested right in or be entitled to receive any part of any contribution made to the fund[.], employee organization, or exclusive representative."

SECTION 6. Section 87-5, Hawaii Revised Statutes, is amended to read as follows:

"§87-5 Reimbursement for state contributions. All state and county agencies having control of special funds shall reimburse the State for contributions made by the State pursuant to section 87-4 on account of the employees in the agencies whose compensation is paid in whole or part from the special funds. All state and county agencies receiving federal funds, which may be expended for the purpose of absorbing the contributions payable by the State to the fund, employee organization, or exclusive representative shall set aside a portion of the federal funds sufficient to reimburse the State for contributions made by the State pursuant to section 87-4 on account of the employees in the agencies whose compensation is paid in whole or part from federal funds."

SECTION 7. Section 87-6, Hawaii Revised Statutes, is amended to read as follows:

"§87-6 Contributions by an employee-beneficiary for health benefits plans. (a) Each employee-beneficiary shall make a monthly contribution to the fund, employee organization, or exclusive representative amounting to the difference between the monthly charge of the health benefits plan selected by the employee-beneficiary and the State's and county's contribution to the fund[.], employee organization, or exclusive representative.

Nothing in this section shall prohibit any employee-beneficiary from participating in a cafeteria plan authorized under section 125 of the Internal Revenue Code of 1986, as amended, and part II of chapter 78.

(b) During the period the health benefits plan selected by an employee-beneficiary is in effect, the employee-beneficiary shall authorize, if otherwise allowed by law, the employee-beneficiary's contribution to be withheld and transmitted to the fund, employee organization, or exclusive representative monthly by the comptroller or finance officer who disburses the employee-beneficiary's compensation, pension, or retirement pay. If, however, an employee-beneficiary's contribution to the fund, employee organization, or exclusive representative is not withheld [and transmitted to the fund], the employee-beneficiary shall pay the monthly contribution (1) directly to the fund, employee organization, or exclusive representative by the first day of each month, in the case of an employee-beneficiary who normally receives the employee-beneficiary's compensation from the comptroller of the State, or (2) in the case of all other employee-beneficiaries, to the respective finance officer from whom the employee-beneficiary normally receives compensation for transmittal to the fund, employee organization, or exclusive representative by the first day of each month.

(c) Notwithstanding any other law to the contrary:

(1) The beneficiary of an employee who is killed in the performance of duty;

(2) An employee-beneficiary who retired after June 30, 1984, due to a disability as defined in sections 88-79 and 88-285;

(3) An employee-beneficiary who retired before July 1, 1984;

(4) An employee-beneficiary who:

(A) Was hired before July 1, 1996;

(B) Retired after June 30, 1984; and

(C) Who had ten years or more of credited service, excluding sick leave; and

(5) An employee-beneficiary who was hired after June 30, 1996, and who retired with twenty-five or more years of credited service, excluding sick leave;

or upon death their beneficiary, including employees who retired prior to the establishing of the fund and their beneficiaries, or the beneficiary of any employee-beneficiary, as described in section 87-1(6) shall not be required to make any contribution to the fund. The monthly contribution of the persons identified in this subsection shall be financed by the State through the department of budget and finance and the several counties through their respective departments of finance for each of their respective employee-beneficiaries.

(d) Subsection (a) notwithstanding, an employee-beneficiary's monthly contribution to the fund, employee organization, or exclusive representative amounting to the difference between the monthly cost of the health benefits plan selected by the employee-beneficiary and the State's or appropriate county's contribution to the fund, employee organization, or exclusive representative shall be deemed to include the amount which would have been the employee-beneficiary's contribution if the employee-beneficiary had not elected to participate in the cafeteria plan."

SECTION 8. Section 87-22.3, Hawaii Revised Statutes, is amended to read as follows:

"§87-22.3 Determination of health benefits plans. Pursuant to section 87-4, the board of trustees shall provide health benefits to employee-beneficiaries in the following manner:

(1) For those employee-beneficiaries who are not participating in a health benefits plan of an employee organization or exclusive representative (hereafter "nonparticipating employee-beneficiaries"), the board of trustees shall establish health benefits plans and the requirements for eligibility under the health benefits plans. Any rate credit or reimbursement from any carrier derived from employee-beneficiary rate contributions to health benefits plans of nonparticipating employee-beneficiaries or interest derived therefrom may be used to improve the respective health benefits plans of nonparticipating employee-beneficiaries or to reduce the employee-beneficiary's respective share of monthly contributions to a health plan; or

(2) For employee-beneficiaries who participate in the health benefits plan of an employee organization[,] or exclusive representative, the board of trustees shall pay a monthly contribution for each employee-beneficiary, in the amount provided in section 87-4(a), or the actual monthly cost of the coverage, whichever is less, towards the purchase of health benefits under the health benefits plan of an employee organization[.] or exclusive representative."

SECTION 9. Section 87-22.5, Hawaii Revised Statutes, is amended to read as follows:

"§87-22.5 Determination of dental plan benefits. Pursuant to section 87-4, the board of trustees shall provide dental plan benefits to the children of employee-beneficiaries who have not attained the age of nineteen in the following manner:

(1) For those children of employee-beneficiaries who are not participating in a dental program of an employee organization or exclusive representative (hereafter called "nonparticipating employee-beneficiaries"), the board shall determine a dental plan and eligibility requirements for such benefits based upon a statutory monthly contribution per enrolled child;

(2) For those children of employee-beneficiaries who participate in the dental program of an employee organization[,] or exclusive representative, the board shall allot the statutory monthly contribution per enrolled child or the actual monthly cost of the child's coverage, whichever is less, towards the purchase of dental plan benefits under the dental program of an employee organization[;] or exclusive representative; provided that no enrolled child shall have more than one allotment a month; or

(3) Paragraphs (1) and (2) notwithstanding, an employee-beneficiary shall be required to enroll all of the employee-beneficiary's children who are under the age of nineteen in the children's dental plan for nonparticipating employee-beneficiaries or the dental program of an employee organization[.] or exclusive representative."

SECTION 10. Section 87-23, Hawaii Revised Statutes, is amended to read as follows:

"§87-23 Determination of benefits under the group life benefit program or group life insurance program. Pursuant to section 87-4, the board of trustees shall provide benefits under a group life benefit program or group life insurance program to employees in the following manner:

(1) For those employees who are not participating in a group life benefit program or group life insurance program of an employee organization or exclusive representative (hereafter "nonparticipating employees"), the board shall determine a group life insurance benefit plan and eligibility requirements for such benefits based upon the amount to be contributed per employee under section 87-4(c);

(2) For those employees who participate in a group life benefit program or group life insurance program of an employee organization, the board shall pay a monthly contribution for each employee, in the amount determined under section 87-4(c), or the actual monthly cost of the coverage, whichever is less, towards the purchase of benefits under the group life benefit program or group life insurance program of an employee organization[.] or exclusive representative; or

(3) Paragraphs (1) and (2) notwithstanding, an employee who is participating in a group life benefit program or group life insurance program of an employee organization or exclusive representative may continue such plan and pay all of the premiums required while enrolled under paragraph (1); provided that no employee shall have more than one contribution from the board per month."

SECTION 11. Section 87-23.7, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) After July 1, 2000, the board of trustees [shall] and the employee organization and exclusive representatives may offer medical, hospital, and surgical benefits plans to part-time, temporary, and seasonal or casual employees at no cost to the employers. A part-time, temporary, and seasonal or casual employee means a person employed for less than three months or whose employment is less than one-half of a full-time equivalent position. The board of trustees may determine eligibility for part-time, temporary, and seasonal or casual employees by rules adopted pursuant to chapter 91."

2. By amending subsection (d) to read:

"(d) Each part-time, temporary, and seasonal or casual employee enrolled for health benefits shall pay monthly contributions directly to the board's, employee organization's, or exclusive representative's designated carrier. The monthly contributions may include the carrier's administrative costs."

SECTION 12. Section 87-25, Hawaii Revised Statutes, is amended to read as follows:

"§87-25 Determine eligibility of employee, dependent, or person. The board of trustees shall establish and adopt eligibility requirements to determine which employee, dependent, or person may qualify as an employee-beneficiary, dependent-beneficiary, or qualified-beneficiary, respectively[,]; provided that all of the employees in the appropriate bargaining units provided for in chapter 89 shall be eligible to participate in the board of trustees established health benefits and group life insurance plans if their exclusive representative does not offer health benefits and group life insurance plans, but if their exclusive representative does offer health benefits and group life insurance plans, then the employees in the appropriate bargaining units provided for in chapter 89 shall participate only in their exclusive representative's health benefits and group life insurance plans, notwithstanding any law to the contrary, and provided further that a retired member of the employees' retirement system, a county pension system, or a police, firefighters, and bandsmen pension system of the State or county, or the retired member's dependent shall be eligible to qualify as an employee-beneficiary or dependent-beneficiary, whether or not the retired member was actively employed by the State or county at the time of the retired member's retirement and whether or not the employee retired before or after the establishing of the public employees health fund. Employees who retired prior to the establishing of the health fund shall be treated as if they were members of the system during their period of employment with the State or county and receive the same benefits as other members. Only an employee-beneficiary or dependent or person satisfying the eligibility requirements may qualify as an employee-beneficiary, dependent-beneficiary, or qualified-beneficiary."

SECTION 13. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 14. This Act shall take effect upon its approval.

INTRODUCED BY:

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