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. 435 entitled:

begs leave to report as follows:

The purpose of this measure is to require the Hawaii Employer-Union Health Benefits Trust Fund (EUTF) to establish a flexible health benefits option plan to enable retirees to select levels of health benefits coverage under separate option categories.

Testimony in support of this measure was submitted by the Retirees Unit of the Hawaii Government Employees Association and the Hawaii State Teachers Association.

Testimony in opposition to this measure was submitted by a private citizen.

Your Committee finds that to meet the needs of retirees, the EUTF should establish a flexible health benefits option plan to allow the selection of benefits coverage tailored to the retired employee-beneficiary's needs. Additionally, your Committee determines that EUTF coverage should also be extended to allow employee-beneficiaries to enroll their spouses who are not public employees or retired employee-beneficiaries.

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. 435 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.