STAND. COM. REP. NO.1321
Honolulu, Hawaii
, 2001
RE: S.B. No. 1044
S.D. 1
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2001
State of Hawaii
Sir:
Your Committee on Finance, to which was referred S.B. No. 1044, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO PUBLIC EMPLOYEE HEALTH BENEFITS,"
begs leave to report as follows:
The purpose of this bill is to establish a new, and more flexible, governance structure for public employee health benefits by:
(1) Replacing the current Hawaii Public Employees Health Fund (PEHF) with the Hawaii Employer-Union Trust Fund (Trust Fund);
(2) Scheduling the repeal of PEHF, as found in chapter 87, Hawaii Revised Statutes (HRS), on July 1, 2003.
The Department of Budget and Finance (B&F) submitted testimony in support of this bill and suggested amendments.
The City and County of Honolulu, Hawaii Government Employees Association, United Public Workers, Office of Information Practices submitted comments.
The Hawaii State Teachers Association submitted testimony in opposition.
Based on the recommendations of B&F, your Committee has amended this bill to:
(1) Increase the membership of the Trust Fund's Board of Trustees (Board) from 10 to 11, by adding a public trustee representing the interests of both the general public and the Trust Fund beneficiaries;
(2) Amend Trust Fund voting procedures so that the three groups of trustees, representing public employers, employee-beneficiaries, and the general public and beneficiaries, each have one vote to ensure timely resolution of issues before the Board;
(3) Address concerns raised by the Office of Information Practices regarding notice procedures of the board of trustees;
(4) Establish base monthly Medicare and non-Medicare employer contribution rates for retirees, effective July 1, 2003;
(5) Continue the July 1, 2003, sunset date of chapter 87, HRS, while providing that the new Trust Fund becomes effective upon approval; and
(6) Make other technical, nonsubstantive amendments for purposes of clarity, consistency, and style.
As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1044, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1044, S.D. 1, H.D. 1.
Respectfully submitted on behalf of the members of the Committee on Finance,
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____________________________ DWIGHT Y. TAKAMINE, Chair |