Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Labor, to which was referred H.B. No. 2950 entitled:

begs leave to report as follows:

The purpose of this measure is to clarify the purpose of the Act 245, Session Laws of Hawaii 2005, which authorizes the establishment of voluntary employees' beneficiary association trusts.

Testimony in support of this measure was submitted by the Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; the Hawaii State Teachers Association; and the United Public Workers, AFSCME Local 646, AFL-CIO. Comments on the measure were also submitted by the Department of the Attorney General and the League of Women Voters of Hawaii.

Your Committee finds that Act 245, Session Laws of Hawaii 2005, authorized the establishment of voluntary employees' beneficiary association (VEBA) trusts by an employee organization for state and county employees of "a particular bargaining unit." Your Committee further finds that clarification is necessary to ensure that the intent of the Legislature to allow any bargaining unit or units to benefit from the establishment of VEBA trusts. Your Committee believes that it was not the Legislature's intent that VEBA trusts only be established by a single employee organization or a single bargaining unit, regardless of the law's temporary nature as establishing only a three-year pilot program. Your Committee believes that this measure should further clarify that VEBA trusts may be established by any employee organization for multiple bargaining units that may also benefit from their combined numbers.

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 H.B. No. 2950, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2950, S.D. 1, and be referred to the Committee on Ways and Means.