HB1548 SD1 SSCR1555

STAND. COM. REP. NO. 1555

Honolulu, Hawaii

, 2005

RE: H.B. No. 1548

H.D. 1

S.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1548, H.D. 1, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to amend the composition, selection, and term of the Board of Trustees of the Employer-Union Health Benefits Trust Fund (Board).

Specifically, this measure:

(1) Increases the number of trustees from ten to fourteen, with seven trustees each representing public employers and employee-beneficiaries, respectively;

(2) Changes the entity appointing the employee-beneficiary trustees from the Governor to the six exclusive bargaining unit representatives, each of whom will select one trustee, and all of whom will select the retiree employee-beneficiary trustee by two-thirds majority vote;

(3) Changes the quorum, vote, and dispute resolution requirements of the Board to account for the increase in the number of trustees; and

(4) Changes the trustee term from four years to serving at the pleasure of the appointing entity.

Your Committee understands that this measure affords equal representation and authority on the Board between employer and union, while also enabling county government and retiree interest representation on the Board. With each trustee serving at the pleasure of that trustee's respective appointing entity, equal representation between employer and union will be maintained and trustees will be afforded ample opportunity to gain experience and knowledge without the restrictions of a four-year term limit.

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 H.B. No. 1548, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

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

		____________________________ BRIAN T. TANIGUCHI, Chair