Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Labor, to which was referred S.B. No. 789 entitled:

begs leave to report as follows:

The purpose of this measure is to postpone the sunset date of the Hawaii Public Employees Health Fund until July 1, 2004, and accordingly extend the authority of the Health Fund to contract for health and life insurance plans.

This measure also delays the implementation date of the Hawaii Employer-Union Health Benefits Trust Fund (EUTF) until July 1, 2004.

Testimony in support of this measure was submitted by the Hawaii Government Employees Association, the Retirees Unit of the Hawaii Government Employees Association, the United Public Workers of Hawaii, the Hawaii State Teachers Association, and two private businesses.

Comments on this measure were submitted by the Public Employees Health Fund.

Your Committee finds that the ability of the Hawaii EUTF to be implemented on July 1, 2003, is unclear. Your Committee determines that it is the intention and belief of the EUTF board that the EUTF will be operational as of that date. However, despite the concerted efforts and intentions of the EUTF board, this measure should continue, as a precautionary measure, should it become clear that the EUTF will not be operational on that date.

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 789 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.