STAND. COM. REP. NO.  913

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 1041

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1041, H.D. 1, 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:

     (1)  Eliminate Medicare Part B reimbursements for employee-beneficiaries who are hired after June 30, 2011, and for the spouses of employee-beneficiaries who are hired after June 30, 2011; and

     (2)  Establish an accrual schedule for Medicare Part B reimbursements for employee-beneficiaries who retire with less than ten years of credited service.

     Imua Alliance and a concerned individual testified in support of this bill.  The Hawaii Government Employees Association and several individuals testified in opposition to this measure.  The Department of the Attorney General, the City and County of Honolulu Department of Budget & Fiscal Services, and a concerned individual commented on this measure.

     Upon consideration, your Committee has amended this bill by:

     (1)  Eliminating the accrual schedule for Medicare Part B reimbursements for employee-beneficiaries who retire with less than ten years of credited service; and

     (2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     Your Committee's prospective application of the provisions in this bill and the deletions made from the H.D. 1 version of this bill are not an endorsement of the theory that benefits accrue at any particular time or that benefits accrue at all.

     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. 1041, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1041, H.D. 2.

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

____________________________

MARCUS R. OSHIRO, Chair