STAND. COM. REP. NO.  246

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1290

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 1290 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUND,"

begs leave to report as follows:

     The purpose of this bill is to clarify which beneficiaries of an employee killed in the performance of duty or of a deceased retiree are eligible to become members of the Employer-Union Health Benefits Trust Fund (EUTF).

     The Department of Budget and Finance, Attorney General, and EUTF Board of Trustees testified in support of this bill.

     Currently, some confusion exists as to who constitutes a "beneficiary" of an employee killed in the line of duty or of a deceased retiree.  Although the EUTF has interpreted "beneficiary" to mean an employee's or retiree's spouse and children who meet certain criteria, no definition for beneficiary currently exists.  Your Committee finds that clarifying this language will help avoid situations where individuals not entitled to a retiree's or employee's benefits claim they are a "beneficiary" of the individual.

     As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1290 and recommends that it pass Second Reading and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

____________________________

ALEX M. SONSON, Chair