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. 1318 entitled:

begs leave to report as follows:

The purpose of this bill is to allow the Public Employees Health Fund to offer different benefits to retirees.

Your Committee finds that the health care needs of retirees may exceed the needs of public employees in certain areas, such as for prescription drugs, but may require less coverage in other areas that are more important for a younger population. Nevertheless, the health benefits for retirees under the health fund have remained the same.

Your Committee agrees with the intent of this bill, and finds that allowing the health fund to offer potentially more suitable benefits to retirees may be more cost effective by not locking retirees' benefits into those offered for all public employees.

Your Committee has amended this bill by adding a purpose section as section 1 of the bill to explain the Committee's reasoning as outlined in this report, and by renumbering the remaining sections.

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. 1318, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1318, H.D. 1, and be referred to the Committee on Finance.