STAND. COM. REP. NO.526

Honolulu, Hawaii

, 2003

RE: S.B. No. 799

S.D. 1

 

 

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. 799 entitled:

"A BILL FOR AN ACT RELATING TO VOLUNTARY EMPLOYEES' BENEFICIARY ASSOCIATION TRUSTS,"

begs leave to report as follows:

The purpose of this measure is to authorize and set forth the requirements for the establishment of a voluntary employees' beneficiary association trust by a public employee organization to provide health benefits for its members, including retirees, who would be exempted from participation in the state Hawaii Employer-Union Health Benefits Trust Fund (EUTF).

Testimony in support of this measure was received by the Retirees Chapter of the Hawaii Government Employees Association, the United Public Workers, the Hawaii State Teachers Association, the Hawaii State Retired Teachers Association, the State of Hawaii Organization of Police Officers, the Hawaii Fire Fighters Association, the University of Hawaii Professional Assembly, three private businesses, and thirty-four teachers.

Your Committee finds that Act 88, Session Laws of Hawaii 2001, established the Hawaii EUTF and created a system in which employer contributions for health benefits would be subject to collective bargaining. Under the existing law, all public employees must participate in the Hawaii EUTF. Your Committee further finds that a voluntary employees beneficiary association trust will provide a necessary option to meet the needs of the employees, with the same cap on cost to the State as is provided for the EUTF under Chapter 87A, Hawaii Revised Statutes.

Your Committee believes that the nature of the participation in a voluntary employees beneficiary association trust should be clarified and has amended the measure as follows:

(1) By requiring all employees of an applicable bargaining unit whose employee organization has established a voluntary employees beneficiary association trust on their behalf to be members of the voluntary employees beneficiary association trust;

(2) Changing the effective date to June 30, 2003; and

(3) By making numerous technical, nonsubstantive amendments to conform the measure to recommended drafting style and for clarity and consistency.

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. 799, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 799, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Labor,

____________________________

BRIAN KANNO, Chair