Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 2950, S.D. 2, entitled:

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this bill is to clarify that a Voluntary Employees’ Beneficiary Association (VEBA) Trust may be established by an employee organization to provide benefits for state and county employees that the employee organization represents, by amending the purpose of the VEBA Trust pilot program under Act 245, Session Laws of Hawaii 2005 (Act 245).

Your Committee on Conference finds that Act 245 established a VEBA Trust pilot program. However, the purpose and findings section of Act 245 makes an ambiguous reference to the provision of health benefits to "a particular bargaining unit." This ambiguity has caused confusion among various bargaining units in the state as to whether they are eligible to participate in this pilot program. This measure clarifies that a VEBA Trust may be established by an employee organization to provide benefits for state and county employees that the employee organization represents.

Your Committee on Conference has amended this measure by changing the effective date from July 1, 2050, to July 1, 2006.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 2950, S.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 2950, S.D. 2, C.D. 1.