Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Labor and Public Employment, to which was referred S.B. No. 762, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill, as received by your Committee, is to remove the cap on the employer's monthly contribution for health benefits plans for retirees.

For purposes of receiving testimony and facilitating discussion, your Committee heard a proposed House Draft 1 that deleted the original contents of the bill and inserted new language that would expand the eligibility for health insurance benefits of part-time, temporary, and seasonal or casual employees of the State who work at least 20 hours per week for at least four consecutive weeks.

The ILWU, Local 142 testified in support of this bill. The Department of Budget and Finance opposed the measure.

Your Committee finds that because state and county governments are exempt from the Prepaid Health Care Act, the State need not offer health insurance coverage to part-time employees. In its attempt to address the problem of increasing numbers of uninsured individuals in the State, the State should lead by example and offer health insurance benefits to their part-time employees.

Accordingly, your Committee has amended this bill by deleting its contents and inserting the provisions of the proposed House Draft 1. As amended, this bill would require the Board of Trustees of the Hawaii Employer-Union Health Benefits Trust Fund (EUTF) to offer medical, hospital, or surgical benefits to part-time, temporary, and seasonal or casual employees.

Your Committee notes that as amended, this bill will not require the State to contribute toward the part-time, temporary, and seasonal or casual employee's health insurance coverage. However, these employees should receive considerable premium savings through the pooling of risks with other employees provided coverage under the EUTF.

As affirmed by the record of votes of the members of your Committee on Labor and Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 762, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 762, S.D. 1, H.D. 1, and be referred to the Committee on Finance.