STAND. COM. REP. NO.880
Honolulu, Hawaii
, 2001
RE: S.B. No. 1044
S.D. 1
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2001
State of Hawaii
Sir:
Your Committee on Ways and Means, to which was referred S.B. No. 1044 entitled:
"A BILL FOR AN ACT RELATING TO PUBLIC EMPLOYEE HEALTH BENEFITS,"
begs leave to report as follows:
The purpose of this measure is to replace the current Hawaii Public Employees Health Fund with a more responsive, flexible, and cost-effective employer-union trust fund.
Specifically, this bill:
(1) Creates an employer-union trust fund that is a single, health benefit delivery system;
(2) Retains the same eligibility requirements for employee-beneficiaries and dependent-beneficiaries as under current statutes;
(3) Provides equal employer and employee representation through a ten-member board of trustees appointed by the governor;
(4) Provides the board of trustees greater administrative flexibility; and
(5) Contains costs by:
(A) Setting the monthly Medicare Part B reimbursement rate at $45.50 for retired employees and spouses and requiring any increase to the reimbursement rate be approved by the Legislature; and
(B) Reducing employers' contributions for health benefits for surviving spouses and dependents of employees who are hired after June 30, 2001.
Your Committee received testimony in support of this measure from the Department of Budget and Finance. The HGEA-AFSCME, the UPW, AFSCME, Local 646 AFL-CIO, and the Department of Human Resources of the City and County of Honolulu supported the intent of this measure. The HSTA submitted testimony in opposition to the measure. The Office of Information Practices testified taking no position on the measure itself but registered strong opposition to section -19 of the new chapter which authorizes the board to call a public meeting at any time without notice if all trustees agreed. The Public Employees Health Fund commented.
Upon further consideration, your Committee has amended this bill to change the effective date to July 1, 2050 to make it defective for purposes of promoting further discussion.
Your Committee has further made several technical, nonsubstantive amendments as follows:
(1) In section -27, the reference to "section -1(A)(v)" is incorrect and has been replaced with "paragraph (1)(E) of the definition of "employee" in section -1." A similar correction has been made in section -29(c);
(2) In section -27, the reference to "section -26(a)" is incorrect and has been amended to read "section -26(b)." The same corrections have been made to section -28 and section -30(c); and
(3) The text of section 2, which amends section 87-28, Hawaii Revised Statutes, varies from the printed version of the Hawaii Revised Statutes and has been changed to conform with the existing Hawaii Revised Statutes text.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1044, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1044, S.D. 1.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
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____________________________ BRIAN T. TANIGUCHI, Chair |
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