Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Labor, to which was referred S.B. No. 2272 entitled:

begs leave to report as follows:

The purpose of this measure is to require retired individuals who receive reimbursements from the Hawaii employer-union health benefits trust fund (EUTF) for Medicare part B premiums to designate an institution of their choice for direct deposit of reimbursements after July 1, 2006.

This measure also amends existing statutory language for purposes of clarity.

Testimony in support of this measure was submitted by the Department of Budget and Finance, the Hawaii EUTF, and the Hawaii State Teachers Association.

Your Committee finds that advancements in technology enable the EUTF to provide retired employee-beneficiaries and their spouses with the convenience and benefits of direct electronic deposit of Medicare part B reimbursements into the retired employee-beneficiaries' or spouses' bank accounts. Your Committee further finds that, currently, retired employee-beneficiaries benefit from the employees' retirement system's similar authority to pay benefits through direct deposits. Your Committee determines that requiring direct deposit for the reimbursement of Medicare part B premiums will result in reduced postage costs, reduced cost of handling paper checks, diminished potential for lost or stolen paper checks, and added convenience through the elimination of the physical deposit of paper checks.

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. 2272 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.