Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Labor, to which was referred S.B. No. 1052 entitled:

begs leave to report as follows:

The purpose of this measure is to provide coverage under the employer-union health benefits trust fund (EUTF) for children who are in a parent-child relationship with an employee-beneficiary and qualify as a dependent under the federal tax laws.

Testimony in support of this measure was submitted by the Hawaii State Teachers Association and the EUTF. Testimony in opposition to this measure was submitted by the Department of Labor and Industrial Relations and the Department of Budget and Finance.

Your Committee finds that under the current law, a child is considered a dependent beneficiary, eligible for EUTF benefits, if the child is "a legally adopted child, stepchild, foster child, or recognized natural child who lives with the employee-beneficiary." The law does not, however, recognize other children in a parent-child relationship with an employee-beneficiary if they do not fall under the above definition. In Hawaii, many individuals are involved in relationships where they are raising a grandchild, niece, nephew, sibling, or hanai child. Your Committee believes that we must also take care of these children by ensuring that they do not become one of the many individuals who are currently uninsured. Therefore, your Committee determines that because these children are in a parent-child type relationship with the employee-beneficiary, the employee-beneficiary provides financial support for these children, and these children may otherwise be without health care coverage, their inclusion in the EUTF should be permitted.

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 S.B. No. 1052 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.