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. 3020, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to allow part-time, temporary, and seasonal or casual employees of the State, who do not already have health insurance coverage, to be eligible for health insurance benefits under the Hawaii Employer-Union Health Benefits Trust Fund.

Your Committee finds that, according to the University of Hawaii Social Science Research Institute, approximately six thousand civilian government employees in Hawaii are without health insurance. Many of these public employees are without health insurance due to their employment status as part-time or temporary employees. Under existing law, the state and county governments are exempt from the Prepaid Health Care Act, which requires private employers to provide health insurance coverage to their employees. As a result, the State or a county need not provide health insurance coverage to its temporary or part-time employees. Part-time or temporary public employees are also specifically excluded from coverage under the Hawaii Employer-Union Health Benefits Trust Fund.

Your Committee also finds that current labor shortages and the need for individuals who are specially trained has necessitated the utilization of an increased number of less than ninety-day hires, as well as part-time employees, thus leaving a number of public employees without health insurance coverage. Your Committee believes that, to properly address the issue of providing health insurance coverage to individuals in the State, especially those that the State may hire on contract or as part-time or seasonal employees, the State must first determine the scope of the problem.

Accordingly, your Committee has amended the measure by deleting its substance and inserting provisions that require the Hawaii Employer-Union Health Benefits Trust Fund to conduct a study on the cost and other impacts of providing health insurance coverage to part-time, temporary, and seasonal or casual employees of the State who do not already have health insurance coverage.

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. 3020, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3020, S.D. 2.