STAND. COM. REP. NO. 1136

Honolulu, Hawaii

RE:    H.B. No. 1294

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam President:

     Your Committee on Judiciary and Labor, 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 measure is to provide an appropriate, cost-neutral adjustment of the base monthly contributions for retiree benefit plans, in the event the Employer-Union Trust Fund's (EUTF) Board of Trustees adopts a revised rate structure for its retiree benefit plans.

     Testimony in support of this measure was received from the EUTF and Budget and Finance.  The EUTF testified that at its recent Board meeting, the EUTF Trustees adopted a three tier (single, two-party, family) rate structure for all its active and retiree health benefit plans beginning July 1, 2007. 

     This measure will off lower rates for retiree health benefits plans to correspond more closely with the size of the retiree's family (e.g., retiree and spouse would have a two-part rate, instead of family rate).   

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor 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 Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

____________________________

CLAYTON HEE, Chair