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. 1053 entitled:

begs leave to report as follows:

The purpose of this measure is to appropriate funds to increase efforts to educate employers and employees of the requirements of the Prepaid Health Care Act (PHCA) and to increase compliance with the PHCA through monitoring and auditing of employers.

Testimony in support of this measure was submitted by the Department of Labor and Industrial Relations (DLIR).

Your Committee finds that although Hawaii mandates health coverage for employees within the State under the PHCA, which was enacted in 1974, many employers and employees are unaware of many of the requirements and benefits provided for under the law. Your Committee determines that increased efforts are necessary in order to better educate the public regarding their rights and responsibilities under the PHCA. Additionally, funds are necessary to allow the DLIR to ensure compliance with the PHCA through enhanced monitoring and auditing of employers.

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. 1053 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.