STAND. COM. REP. 482

Honolulu, Hawaii

, 2003

RE: H.B. No. 970

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Labor and Public Employment, to which was referred H.B. No. 970 entitled:

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

begs leave to report as follows:

The purpose of this bill is to require the Board of Trustees (Board) of the Hawaii Employer-Union Health Benefits Trust Fund (Trust Fund) to fulfill its responsibilities in accordance with section 404 of the Employees Retirement Income Security Act of 1974, as amended.

The Hawaii State Teachers Association supported the intent of this measure. The Department of Budget and Finance and the Hawaii Government Employees Association opposed this bill.

Among other things, Act 88, Session Laws of Hawaii 2001, requires the transfer of all civil service employees of the Hawaii Public Employees Health Fund to the Trust Fund on July 1, 2003. Moreover, the Board may contract for health benefits plans and group life insurance benefits plans, which shall become effective on July 1, 2003. However, due to disagreements, the Board has been unable to prepare for these deadlines. Accordingly, this bill seeks to ensure that the Board's work will get done on a timely basis by applying fiduciary responsibilities on the Board.

As affirmed by the record of votes of the members of your Committee on Labor and Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 970 and recommends that it pass Second Reading and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committee on Labor and Public Employment,

 

____________________________

MARCUS R. OSHIRO, Chair