Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2021, S.D. 2, H.D. 2, entitled:

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to allow a retired public employee who relocates outside of the coverage area of the Hawaii employer-union health benefits trust fund (EUTF) to be reimbursed for securing a personal health insurance policy.

Currently, a retired public employee who relocates outside of the coverage area of the EUTF is being deprived of vested health benefits coverage. A retired public employee who has provided years of service to our residents is entitled to reap the benefits of such hard work through the continued provision of health care coverage, irrespective of the individual's physical location. This measure will provide parity among employee-beneficiaries of the EUTF through the reimbursement of the lesser of the actual cost of obtaining a personal health insurance policy or the amount of the State or county contribution for the most comparable health benefits plan provided under the EUTF.

Upon further consideration, your Committee on Conference has amended this measure by changing its effective date to July 1, 2007.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2021, S.D. 2, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2021, S.D. 2, H.D. 2, C.D. 1.