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. 572 entitled:

begs leave to report as follows:

The purpose of this bill is to authorize the Board of Trustees of the Public Employees Health Fund to return excess rate credits or reimbursements, or credit their return, to employee beneficiaries, provided that the source of the excess is the rate contributions to health benefit plans of nonparticipating employees.

In addition, this measure repeals the Board's authority to use those rate credits or reimbursements to improve only the health benefits plans of nonparticipating employee-beneficiaries.

Furthermore, this measure also appropriates funds out of the Hawaii Public Employees Health Fund trust fund for the purposes of this measure.

Your Committee has amended this measure by repealing the present law that requires the Board to return excess rate credits or reimbursements to the State or the county and by deleting the amendatory language that authorizes the Board to return excess rate credits or reimbursements to employee beneficiaries. Your Committee has furthermore amended this measure by authorizing the Board to use those excess rate credits and reimbursements instead to fund a comprehensive study and review of benefits design and analysis of all health benefits plans relating to the Public Employees Health Fund.

Your Committee has furthermore amended this measure by specifying that one way that rate credits or reimbursements may be used to improve the health benefits plans of nonparticipating employee-beneficiaries is to fund that comprehensive study and review.

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. 572, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 572, H.D. 1, and be referred to the Committee on Finance.