STAND. COM. REP. NO. 2788

Honolulu, Hawaii

RE:    S.B. No. 2701

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 2701, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO EMPLOYER-UNION HEALTH BENEFITS TRUST FUND,"

begs leave to report as follows:

     The purpose and intent of this measure is to clarify the Hawaii Employer-Union Health Benefits Trust Fund law.

Specifically, this measure:

(1)  Adds the definition of "credited service" for the purpose of comporting with the use of the term "service" under the pension and retirement laws; and

(2)  Amends the definitions of "employee" and "part-time, temporary, and seasonal or casual employee" for the purpose of comporting with existing public employee health benefits laws by clarifying that:

(A)  An "employee" does not include a per diem employee; and

(B)  A "part-time, temporary, and seasonal or casual employee" is a person that is employed for fewer than three months or whose employment is less than one-half of a full-time equivalent position, not necessarily both.

     Your Committee finds that the amendments set forth in this measure are necessary to better reflect the Legislature's intent to provide health fund benefits to public sector employees based upon their status as an employee and what should be deemed as credited service.

     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 S.B. No. 2701, S.D. 1, and recommends that it pass Third Reading.

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

____________________________

DAVID Y. IGE, Chair