Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Labor, to which was referred H.B. No. 1056, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to provide the State and the counties with the flexibility to provide health benefits to their employees in a cost-effective manner by making the level and type of health benefits for public employees subject to collective bargaining.

The United Public Workers supported the intent of the measure. The Department of Budget and Finance and the Hawaii State Teachers Association opposed this measure. The Hawaii Public Employees Health Fund Board of Trustees and the Hawaii Government Employees Association provided comments.

Although your Committee has concerns over the impact of this measure, your Committee believes that it would serve as an appropriate legislative vehicle from which further discussion may foster a resolution that will benefit all parties involved. Since the measure already contains an effective date of July 1, 2010, your Committee is confident that continued discussion will ensue.

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1056, H.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.