STAND. COM. REP. NO.  503

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1294

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. 1294 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 allow the Board of Trustees of the Employer-Union Health Benefits Trust Fund (EUTF) to better manage the EUTF by providing an appropriate, cost-neutral adjustment of the base monthly contributions for retiree benefit plans, in the event the EUTF Board of Trustees adopts a revised rate structure for its retiree benefit plans.

     EUTF and Department of Budget and Finance testified in support of this bill.

     Your Committee finds that allowing the public employers' base monthly contributions to be adjusted to reflect pending or future changes in the retiree rate structure will eliminate the potential for confusion and the overpayment or underpayment of premiums that might occur under the current system whenever the Board of Trustees of the EUTF amends the rate structure of its retiree health benefits plan.

     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. 1294 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