STAND. COM. REP. NO.  975

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1746

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1746 entitled:

"A BILL FOR AN ACT RELATING TO VOLUNTARY EMPLOYEES' BENEFICIARY ASSOCIATION TRUSTS,"

begs leave to report as follows:

     The purpose of this bill is to allow an additional five years to evaluate the effectiveness of establishing voluntary employees' beneficiary association (VEBA) trusts as a health care cost-containment measure in providing health benefits for state and county employees of a particular bargaining unit as well as future and existing retirees.  This bill also requires reports to the Legislature on the establishment of VEBA trusts after two full years of implementation and annually thereafter.

     The Hawaii State Teachers Association (HSTA), HSTA VEBA Trust, and concerned individuals testified in support of this bill.  The Department of Budget and Finance, Hawaii Government Employees Association Retirees Unit, and a concerned individual offered comments.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1746 and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair