STAND. COM. REP. NO. 933

Honolulu, Hawaii

RE: S.B. No. 1087

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committees on Judiciary and Ways and Means, to which was referred S.B. No. 1087, S.D. 1, entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to suspend the requirement for public employers to make annual required contributions to the Hawaii Employer-Union Health Benefits Trust Fund (EUTF) through fiscal year 2024-2025.

Your Committees received testimony in support of this measure from the Department of Budget and Finance. Your Committees received comments on this measure from the Hawaii Employer-Union Health Benefits Trust Fund, Tax Foundation of Hawaii, and Grassroot Institute of Hawaii.

Your Committees find that, in July 2020, the Governor suspended the State's required payment of annual contributions to the EUTF to address the $2.3 billion budget shortfall caused by the coronavirus disease 2019 pandemic. Extending this temporary suspension of annual required contributions is one of the cornerstones of the Governor's approach to balancing the general fund financial plan. This measure will continue the temporary suspension of prefunding retiree health benefits to reduce state and county annual payment requirements and provide the State and other public employers flexibility to address immediate budgetary concerns while the economy recovers.

As affirmed by the records of votes of the members of your Committees on Judiciary and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1087, S.D. 1, and recommend that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committees on Judiciary and Ways and Means,

________________________________ DONOVAN M. DELA CRUZ, Chair

________________________________ KARL RHOADS, Chair