STAND. COM. REP. NO. 956-04

Honolulu, Hawaii

, 2004

RE: S.B. No. 2355

S.D. 2

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Labor and Public Employment, to which was referred S.B. No. 2355, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC EMPLOYEE HEALTH BENEFITS,"

begs leave to report as follows:

The purpose of this bill is to clarify certain issues concerning a public retiree's qualifications for health insurance benefits. More specifically, this bill reduces ambiguity in the treatment by the Employer-Union Health Benefits Trust Fund of an employee who has experienced a break in service and has decided to resume employment with the State.

The Hawaii Government Employees Association (HGEA) testified in support of this bill. The Department of Budget and Finance (B&F) and Department of the Attorney General (AG) commented on this measure.

Your Committee finds that technical issues with this bill, as received, might unintentionally cause a retiree's benefits to be reduced by 50 percent. As such, your Committee, together with representatives of B&F, AG, and HGEA, crafted language to address these issues.

Accordingly, your Committee has amended this bill by:

(1) Adding language to section 87A-36, Hawaii Revised Statutes, that an employee hired after June 30, 1996, and prior to July 1, 2001, and who cumulatively accrues at least ten years of credited service shall receive health benefits upon retirement; and

(2) Making various other technical, nonsubstantive revisions for clarity, style, and conformity.

Although it was suggested that this measure be applied to certain other employees, your Committee had legal concerns on broadening the scope of this measure and the possible ramifications this action may have on all employees of the State, including fiscal implications. As these issues are beyond the purview of your Committee on Labor, your Committee respectfully requests that the Committee on Finance study these issues further as this measure continues through the legislative process.

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 S.B. No. 2355, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2355, S.D. 2, H.D. 1, 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