STAND. COM. REP. NO.721

Honolulu, Hawaii

, 2003

RE: S.B. No. 761

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 761 entitled:

"A BILL FOR AN ACT RELATING TO THE HEALTH BENEFITS TRUST FUND,"

begs leave to report as follows:

The purpose of this measure is to authorize the Hawaii employer-union health benefits trust fund board of directors to hire its own attorneys.

Your Committee finds that the trust fund is responsible for approximately $550 million in annual revenues and represents 90,000 active and retired public employees. The trust fund negotiates health benefits on behalf of public employees with the employer - the State of Hawaii and the respective counties. The trust fund, however, receives legal counsel from the state Attorney General. This apparent conflict of interest places the trust fund in the difficult position of relying on legal counsel provided by the employer.

This bill removes any conflict of interest by authorizing the trust fund to hire its own attorneys to provide its members with the best possible representation.

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. 761 and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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BRIAN T. TANIGUCHI, Chair