STAND. COM. REP. NO. 2460

Honolulu, Hawaii

RE: S.B. No. 2708

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Labor, Culture and the Arts, to which was referred S.B. No. 2708 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 "employee—beneficiary" with regard to the Hawaii Employer—Union Benefits Trust Fund to include the surviving unmarried adult child of a deceased retired member, provided that the unmarried adult child is incapable of self-support due to a mental or physical incapacity that existed prior to the child reaching the age of nineteen.

Your Committee received testimony in support of this measure from the Hawaii Government Employees Association, AFSCME Local 152, AFL‑CIO; United Public Workers, AFSCME Local 646, AFL-CIO; and one individual. Your Committee received comments on this measure from the Hawaii Employer Union Health Benefits Trust Fund.

Your Committee finds that many individuals who are incapable of self-support due to a mental or physical incapacity are enrolled in health plans offered by the Hawaii Employer-Union Health Benefits Trust Fund as a dependent-child of a retired member. Your Committee also finds that these dependents have limited income, if any, and do not have other opportunities to receive similar benefits. Your Committee further finds that existing law governing the Hawaii Employer-Union Health Benefits Trust Fund does not provide survivor benefit coverage, and therefore, these adult children lose their health benefits when the retiree and the retiree's spouse are no longer living or eligible for benefits from the health benefits trust fund. According to the Hawaii Employer-Union Health Benefits Trust Fund, over the past five years, there was on average, four such children per year who lost coverage due to the passing of their last eligible parent. Your Committee finds that this measure will provide continued health benefit coverage to surviving children with mental or physical incapacity when the retiree and the retiree's spouse are no longer living or eligible.

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. 2708 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