STAND. COM. REP. NO. 2117

Honolulu, Hawaii

RE:    S.B. No. 2839

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Judiciary and Labor, to which was referred S.B. No. 2839 entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to amend the definition of "dependent-beneficiary" contained in chapter 87A, Hawaii Revised Statutes, by:

     (1)  Excluding from the definition an employee-beneficiary's child born more than ten months after the death of an employee killed in the performance of duty, after the death of an active employee who was eligible to retire on the date of death, or after the date of death of a retired employee-beneficiary; and

     (2)  Repealing the requirement that an employee-beneficiary's child must be unmarried, in conformance with the federal Patient Protection and Affordable Care Act of 2010, in order to be a dependent-beneficiary.

     Your Committee received testimony in support of this measure from the Hawaii Employer-Union Health Benefits Trust Fund.

     Your Committee finds that the Hawaii Employer-Union Health Benefits Trust Fund offers health benefits to the children of state and county employees and retirees.  However, under existing law, a child born or legally adopted by an employee's or retiree's surviving spouse after a state or county employee's or retiree's death who is not the natural child of the deceased employee or retiree is also eligible to participate in fund benefit plans.  Implementation of this measure will clarify eligibility of children for participation in fund benefit plans and bring the definition of "dependent-beneficiary" into conformance with the federal Patient Protection and Affordable Care Act of 2010.

     Your Committee has amended this measure by:

     (1)  Additionally, excluding from the definition of "dependent-beneficiary" children legally adopted more than ten months after a state or county employee's or retiree's death; 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 S.B. No. 2839, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2839, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

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GILBERT S.C. KEITH-AGARAN, Chair