STAND. COM. REP. NO. 906

Honolulu, Hawaii

RE:    H.B. No. 814

       H.D. 1

       S.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 Judiciary and Labor, to which was referred H.B. No. 814, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC EMPLOYMENT,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Limit the Hawaii Employer-Union Health Benefits Trust Fund to providing group life insurance benefits only to retired employees who retired before July 1, 2011;

     (2)  Maintain the flat dollar contribution for the group life benefit of retired employees and repeal the annual adjustment; and

     (3)  Repeal provisions pertaining to the negotiation of group life insurance contributions for active employees.

     Your Committee received testimony in support of this measure from the Department of Budget and Finance.  Your Committee received testimony in opposition to this measure from the Hawaii Fire Fighters Association, Local 1463, IAFF, AFL-CIO; Hawaii State Teachers Association; University of Hawaii Professional Assembly; and two individuals.  Your Committee received comments on this measure from the City and County of Honolulu Department of Budget and Fiscal Services.

     Your Committee finds that this cost-saving measure is one of many alternatives being considered by the Legislature in response to the current revenue shortfall.  Your Committee understands the concerns of those who have testified in opposition to this measure, but believes that all options should remain under consideration.

     Your Committee has amended this measure accordingly by:

     (1)  Inserting an effective date of July 1, 2050, to allow for further discussion; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     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. 814, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 814, H.D. 1, S.D. 1, 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