STAND. COM. REP. NO. 3005

Honolulu, Hawaii

RE: S.B. No. 2576

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2576, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO REIMBURSEMENTS FOR STATE CONTRIBUTIONS,"

begs leave to report as follows:

The purpose and intent of this measure is to exempt the University of Hawaii from reimbursing the State for contributions made by the State to the Hawaii Employer-Union Health Benefits Trust Fund and the Employees' Retirement System for university employees whose salary costs are paid by the University of Hawaii tuition and fees special fund.

Your Committee received written comments in support of this measure from the Department of Budget and Finance.

Your Committee received written comments on this measure from the University of Hawaii.

Your Committee finds that this measure codifies a present cost-sharing agreement between the University of Hawaii and the Department of Budget and Finance, without which an unintended consequence would be the university having to pay additional fringe benefit costs.

Your Committee has amended this measure by:

(1) Clarifying that positions exempted from reimbursement shall be reported to the Legislature;

(2) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(3) Making technical nonsubstantive changes for purposes of clarity, consistency, and style.

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. 2576, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2576, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair