STAND. COM. REP. NO.  1136

Honolulu, Hawaii

                , 2013

RE:   S.B. No. 867

      S.D. 2

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred S.B. No. 867, S.D. 2, 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 measure is to amend the law relating to state and county contributions to the Hawaii Employer-Union Health Benefits Trust Fund for retired employees by, among other things:

(1)  Deleting language providing caps on base monthly contribution amounts for supplemental Medicare and non-Medicare self and family plans, effective July 1, 2003, and adjusted on July 1, 2004; and

(2)  Setting forth caps on the required state and county base monthly contributions for supplemental Medicare and non-Medicare self, two-party, and family plans as unspecified amounts beginning January 1, 2014.

United Public Workers, AFSCME, Local 646, AFL-CIO supported this measure.  The Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO opposed this measure.  The Department of Budget and Finance submitted comments on this measure.

     Your Committee has amended this measure by deleting its contents and inserting in its place the contents of H.B. No. 1174, H.D. 1, which are similar to this measure and currently under consideration by the Senate.

     As amended, this measure repeals statutorily-established caps on base monthly contributions to the Hawaii Employer-Union Health Benefits Trust Fund paid by the State and counties for retiree health benefit plans.

     As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 867, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 867, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

____________________________

MARK M. NAKASHIMA, Chair