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 S.B. No. 1052 entitled:

begs leave to report as follows:

The purpose of this measure is to clarify the definition of "dependent-beneficiary" for purposes of Employer-Union Health Benefits Trust Fund coverage.

Specifically, this bill includes in the definition of "dependent-beneficiary" any other child who lives in a parent-child relationship with the employee-beneficiary and who qualifies as a dependent of the employee-beneficiary for federal tax purposes.

Your Committee finds that current law does not recognize, for purposes of coverage under the Employer-Union Health Benefits Trust Fund, any children in a parent-child relationship with an employee-beneficiary unless they are legally adopted, stepchildren, foster children, or recognized natural children. However, in Hawaii, many individuals are involved in relationships where they are raising a grandchild, niece, nephew, sibling, or hanai child. Your Committee believes that these other children also deserve coverage under the Employer-Union Health Benefits Trust Fund because they are in a parent-child type relationship with the employee-beneficiary and the employee-beneficiary provides financial support for these children.

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 S.B. No. 1052 and recommends that it pass Third Reading.