Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Labor, to which was referred S.C.R. No. 193 entitled:

begs leave to report as follows:

The purpose of this measure is to request that the Department of Labor and Industrial Relations conduct a study on the effects of the current definitions of "regular employee" and "eligible employee" under the Hawaii Prepaid Health Care Act to determine:

Testimony in opposition to this measure was submitted by the Department of Labor and Industrial Relations (DLIR).

Your Committee finds that, although at its inception the Prepaid Health Care Act was considered a progressive move in the area of health care coverage, a large number of individuals in Hawaii, many of whom are employed, are currently without health care coverage. The restrictions under the Prepaid Health Care Act do not allow for coverage for individuals who are considered part-time employees, because they do not work at least twenty hours per week, although they may work in excess of eighty hours during a consecutive four-week period. Additionally, the extent of the number of these individuals who are ineligible for coverage under the Prepaid Health Care Act is unclear.

Therefore, your Committee determines that it is crucial for the State to obtain an accurate accounting of the number of these ineligible individuals to ascertain how to maximize the number of individuals that may be insured. Your Committee recognizes the magnitude of the task of compiling the necessary data and other information to conduct this study and believes that the various state departments, agencies, and other organizations should assist DLIR in any manner possible in completing this study.

Although concerns have been raised regarding DLIR's ability to obtain the necessary data to complete this study, your Committee believes that time constraints require that the measure continue to progress through the Legislature where the Committee on Commerce, Consumer Protection and Housing can further address any specific concerns.

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 193 and recommends that it be referred to the Committee on Commerce, Consumer Protection and Housing.