STAND. COM. REP. NO. 2766

Honolulu, Hawaii

RE: S.B. No. 3012

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Labor, Culture and the Arts, to which was referred S.B. No. 3012 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 clarify the role of an Employer-Union Health Benefits Trust Fund trustee to require that each trustee administer the fund for the sole and exclusive benefit of the beneficiaries.

Your Committee received testimony in support of this measure from the University of Hawaii Professional Assembly and the Hawaii Government Employees Association, AFSCME Local 152. Your Committee received testimony in opposition to this measure from the Department of Budget and Finance.

Your Committee finds that under existing law, Employer-Union Health Benefits Trust Fund trustees must consider both the public employers and public employees when administering health and other benefit plans. This measure requires the Employer-Union Health Benefits Trust Fund trustees to administer health care and other benefit plans for the sole and exclusive benefit of the beneficiaries.

As affirmed by the record of votes of the members of your Committee on Labor, Culture and the Arts that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3012 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Labor, Culture and the Arts,

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BRIAN T. TANIGUCHI, Chair