Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Labor and Public Employment, to which was referred H.B. No. 1058 entitled:

begs leave to report as follows:

The purpose of this bill is to establish a legislatively-imposed ceiling on public employee health fund expenditures for health benefits.

Specifically, this bill subjects and limits the payment by the State and the counties for various health benefits to collective bargaining agreements, if permitted by law, or to a legislatively appropriated amount, whichever is appropriate. This limitation applies to all public employer monthly contributions to the health fund for a health benefits plan, dental benefits plan, group life insurance benefits plan, and the supplemental plan for federal Medicare.

Your Committee believes that limits on the expenditures of the Public Employees Health Fund for the payment of health benefits for public employees and retirees is necessary in light of the ever-rising costs of health care coverage.

As affirmed by the record of votes of the members of your Committee on Labor and Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1058 and recommends that it pass Second Reading and be referred to the Committee on Finance.