STAND. COM. REP. NO.  331

Honolulu, Hawaii

                , 2015

RE:   H.B. No. 916

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 916 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:

     (1)  Remove certain restrictions on investments that can be made by the Hawaii Employer-Union Health Benefits Trust Fund (EUTF); and

     (2)  Make housekeeping amendments to the EUTF statute.

The Hawaii Employer-Union Health Benefits Trust Fund Board of Trustees testified in support of this measure.  The Department of Budget and Finance commented on this measure.

     Your Committee finds that the viability of the EUTF is of great concern to the State and that there should be an enhancement of benefits moratorium to control the State's liability.  Accordingly, your Committee has amended this measure by:

     (1)  Providing for a moratorium on benefit enhancements that increase other post-employment benefits liability within the EUTF statute; and

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

     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 H.B. No. 916, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 916, 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