STAND. COM. REP. NO. 771

Honolulu, Hawaii

RE:    S.B. No. 935

       S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 935, S.D. 1, entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to authorize the Hawaii Employer-Union Health Benefits Trust Fund to employ staff through the civil service system and to appropriate funds for that purpose.

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

     Your Committee finds that operations of the Hawaii Employer-Union Health Benefits Trust Fund have been hindered by the high turnover rate of its employees, who attribute their exempt civil service status as one of the reasons for leaving.  Your Committee further finds that authorizing the trust fund to recruit employees through the civil service system will assist the trust fund in retaining its employees.

     Your Committee has amended this measure by:

(1)  Specifying that the staff may be exempt from, or subject to, the civil service laws, at the discretion of the Board of Trustees of the Hawaii Employer-Union Health Benefits Trust Fund;

(2)  Clarifying that the references to staff who serve at the pleasure of the board and who are exempt from certain civil service law provisions are to exempt staff positions; and

(3)  Specifying that the means of financing for the appropriation is the Hawaii Employer-Union Health Benefits Trust Fund.

     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. 935, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 935, S.D. 2.

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

________________________________

JILL N. TOKUDA, Chair