Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2021, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to provide parity to retirees who relocate outside the coverage of the Hawaii employer-union health benefits trust fund.

Specifically, this bill requires the Hawaii employer-union health benefits trust fund to reimburse retirees who have relocated outside the coverage of the fund for costs associated with securing a personal health insurance policy. Reimbursement is limited to the lesser of the actual cost of the policy or the amount of the state or county contribution for the most comparable health benefits plan. Reimbursements are to begin on July 1, 2007 and apply to all retirees regardless of their date of retirement.

Upon further consideration, your Committee has amended this bill by clarifying that the reimbursements apply to all retirees regardless of their date of retirement by specifically including this provision within the text of the new section 87A-   , Hawaii Revised Statutes. Your Committee has also made technical nonsubstantive amendments for the purposes of clarity.

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. 2021, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2021, S.D. 2.