Changes the composition of the EUTF board of trustees from ten to twelve members, one of whom shall be appointed by the counties on a rotational basis. Amends the procedures for filing board vacancies and for quorum requirements.

A BILL FOR AN ACT

SECTION 1. Section 87A-5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§87A-5[]] Composition of board. The board of trustees of the employer-union health benefits trust fund shall consist of [ten] twelve trustees, eleven of whom shall be appointed by the governor and one of whom shall be appointed by the counties on a rotating basis as follows:

Section 26-34 shall not apply to board member selection and terms."

SECTION 2. Section 87A-6, Hawaii Revised Statutes, is amended to read as follows:

"[[]§87A-6[]] Term of a trustee; vacancy. The term of office of each trustee shall be four years; provided that a trustee may be reappointed for one additional consecutive four-year term. Each term shall commence on January 1 and expire on December 31. The governor may reduce the terms of those initially appointed so as to provide, as far as practicable, for the expiration of an equal number of terms at intervals of one year. The governor may not reduce the term of the trustee selected by the counties.

A vacancy on the board shall be filled by appointment of the governor[;], or selected by the next mayor in rotation in the case of a vacancy in the county trustee position; provided that the criteria used for selecting the successor shall be the same criteria used for selecting the person's predecessor. The person appointed to fill a vacancy shall serve for the remainder of the term of the person's predecessor.

If by the end of a trustee's term a trustee is not reappointed or the trustee's successor is not appointed, the trustee shall serve until the trustee's successor is appointed."

SECTION 3. Section 87A-11, Hawaii Revised Statutes, is amended to read as follows:

"[[]§87A-11[]] Quorum; board actions; voting. (a) [Six] Seven trustees, [three] four of whom represent the public [employer] employers and three of whom represent employee-beneficiaries, shall constitute a quorum for the transaction of business.

(b) Trustees representing the public employers shall collectively have one vote. Trustees representing the employee-beneficiaries shall collectively have one vote.

For any vote of the trustees representing the public employers to be valid, three of these trustees must concur to cast such a vote. In the absence of such concurrence, the trustees representing the public employers shall be deemed to have abstained from voting.

For any vote of the trustees representing the employee-beneficiaries to be valid, [three] four of these trustees [must] shall concur to cast such a vote. In the absence of such concurrence, the trustees representing the employee-beneficiaries shall be deemed to have abstained from voting.

An abstention shall not be counted as either a vote in favor or against a matter before the board.

(c) Any action taken by the board shall be by the concurrence of at least two votes. In the event of a tie vote on any motion, the motion shall fail. Upon the concurrence of [six] seven trustees, the board shall participate in dispute resolution."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.