STAND. COM. REP. NO. 313

Honolulu, Hawaii

, 2023

RE: H.B. No. 334

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Labor & Government Operations, to which was referred H.B. No. 334 entitled:

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

begs leave to report as follows:

The purpose of this measure is to:

(1) Set the amount of the employer contribution to the Hawaii Employer-Union Health Benefits Trust Fund as a fixed percentage of the health benefits plan or life insurance plan premium cost; and

(2) Make conforming amendments to remove the amount of contributions by the State and counties to the Hawaii Employer‑Union Health Benefits Trust Fund from the scope of collective bargaining negotiations.

Your Committee received testimony in support of this measure from the Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO. Your Committee received testimony in opposition to this measure from the Department of Budget and Finance. Your Committee received comments on this measure from the Office of Collective Bargaining of the Executive Office of the Governor.

Your Committee finds that high insurance premiums are making health care unaffordable for working families, and all employees who participate in the Employer-Union Health Benefits Trust Fund deserve affordable health care options. This measure will enable the legislature to fix the percentage of the employer contribution to health benefits or life insurance plan premiums rather than allow the cost burden to be shifted disproportionately onto employees. Your Committee further finds that the State needs to consider its ability to hire and retain employees. Health care affordability is an important part of that consideration.

Your Committee has amended this measure by:

(1) Changing the effective date to June 30, 3000, to encourage further discussion; and

(2) Making a technical, nonsubstantive amendment for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Labor & Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 334, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 334, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor & Government Operations,

____________________________

SCOT Z. MATAYOSHI, Chair