STAND. COM. REP. NO. 805

Honolulu, Hawaii

RE:    H.B. No. 1034

       H.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B. No. 1034, H.D. 1, entitled:

"A BILL FOR AN ACT MAKING EMERGENCY APPROPRIATIONS FOR COLLECTIVE BARGAINING COST ITEMS,"

begs leave to report as follows:

     The purpose and intent of this measure is to make emergency appropriations for fiscal biennium 2009-2011 to fund Employer-Union Health Benefits Trust Fund health premium payments under the agreement negotiated with the exclusive bargaining representative of collective bargaining units 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, and 13, and their excluded counterparts.

     Your Committee received testimony in support of this measure from Kalbert Young, Director, Department of Budget and Finance; Wil Okabe, President, Hawaii State Teachers Association; Randy Perreira, Executive Director, Hawaii Government Employees Association, AFSCME Local 152; and Dayton M. Nakanelua, State Director, United Public Workers, AFSCME, Local 646, AFL-CIO.

   Your Committee notes that Governor's Message No. 98 requests immediate passage of this measure in accordance with Article VII, Section 9, of the Constitution of the State of Hawaii.

     Your Committee further finds that state employees have absorbed the costs of all health premium increases since July 2009.  This measure, through the current fiscal year ending on June, 30, 2011, raises employer contributions to coincide with health premium increases beginning in March 2011.  Immediate passage of this measure will minimize the necessity of making retroactive adjustments for pay periods following the health premium increase.

     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 H.B. No. 1034, H.D. 1, and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair