STAND. COM. REP. NO. 2531

Honolulu, Hawaii

RE:    S.B. No. 2839

       S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 2839, S.D. 1, 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 the term "dependent-beneficiary" to clarify the eligibility of children for participation in the Hawaii Employer-Union Health Benefits Trust Fund and to bring the definition of that term in conformance with the federal Patient Protection and Affordable Care Act of 2010.

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

     Your Committee finds that the birth or adoption of a child by a surviving spouse more than ten months after the death of an employee or retiree was not a situation the Legislature contemplated when establishing the benefits of the Hawaii Employer-Union Health Benefits Trust Fund.  However, under the current definition of "dependent-beneficiary," such a child would be entitled to medical, drug, dental, and vision insurance funded by the State.  Your Committee finds that excluding children born or adopted by a surviving spouse more than ten months after the death of an employee or retiree would more closely align with the purpose for which the Hawaii Employer-Union Health Benefits Trust Fund is intended.

     Your Committee further finds that the housekeeping amendments made to sections 87A-34(a) and 87A-36(c), Hawaii Revised Statutes, by Senate Bill No. 2838, entitled "Relating to Investments of the Hawaii Employer-Union Health Benefits Trust Fund," arguably do not fit within the scope of the title of that measure.  Your Committee believes that the title of this measure is sufficiently broad to include those housekeeping amendments in this measure.

     Your Committee has amended this measure by inserting language from Senate Bill No. 2838, that makes technical nonsubstantive amendments to sections 87A-34(a) and 87A-36(c), Hawaii Revised Statutes.

     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. 2839, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2839, S.D. 2.

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

________________________________

JILL N. TOKUDA, Chair