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. 1174 entitled:

begs leave to report as follows:

The purpose of this bill is to change the composition and terms of the Board of Trustees of the Public Employees Health Fund.

Specifically, this measure changes the board composition by replacing the requirement of nine trustees from various sectors of the community and government with an unspecified but equal number of representatives from only public employee organizations and public employers.

Furthermore, this measure changes the term of the trustees by replacing the four-year terms with a six-year term for the retiree member and indeterminate terms for the others, which will be served at the discretion of the chief executive or public employee organization director.

Your Committee has amended this measure by requiring that one of the two board members who are appointed by the Governor to represent public employers must have health benefits design or benefits analysis experience.

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. 1174, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1174, H.D. 1, and be referred to the Committee on Finance.