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. 1566 entitled:

begs leave to report as follows:

The purpose of this measure is to exclude members of collective bargaining unit (12) from participation in the employer-union health benefits trust fund (EUTF).

Testimony in support of this measure was submitted by the State of Hawaii Organization of Police Officers. Testimony in opposition to this measure was submitted by the Hawaii Government Employees Association. Comments on the measure were also submitted by the EUTF and the Department of Budget and Finance.

Your Committee finds that members of collective bargaining unit (12), police officers, provide a unique and invaluable service to the community. Over the years, a shortage of police officers and viable candidates for becoming police officers has existed within the State, and efforts must be made to equitably compensate, retain, and recruit qualified individuals to fill these positions. Due to financial constraints, alternative methods for adequately compensating these individuals must be explored.

Your Committee further finds that the cost of health care benefits has and will continue to increase over the years. The provision of affordable health care presents an attractive benefit both for retaining existing police officers and recruiting new police officers.

Additionally, your Committee determines that, based upon representations by SHOPO, more affordable health care benefits can be obtained if police officers are excluded from the EUTF and allowed to obtain health coverage on their own.

Accordingly, your Committee has amended this measure by:

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. 1566, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1566, S.D. 1, and be referred to the Committee on Ways and Means.