Report Title:

VEBA Trusts; Pilot Program; Sunset Amendment

 

Description:

Lowers the cost of health benefits for public employers and public employees by ensuring all health benefits are administered under one system through the repeal of Voluntary Employees' Beneficiary Association Trusts.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1063

TWENTY-FIFTH LEGISLATURE, 2009

 

STATE OF HAWAII

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO VOLUNTARY EMPLOYEES' BENEFICIARY ASSOCIATION TRUSTS.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  Act 245, Session Laws of Hawaii 2005, as amended by section 2 of Act 294, Session Laws of Hawaii 2007, as amended by section 1 of Act 5, Special Session Laws of Hawaii 2008, is amended by amending section 8 to read as follows:

     "SECTION 8.  This Act shall take effect upon its approval, for the purpose of establishing a voluntary employees' beneficiary association trust pilot program in March, 2006 and shall be repealed on July 1, [2010;] 2009; provided that sections 89-2, 89-3, 89-6, and 89-9, Hawaii Revised Statutes, are reenacted in the form in which they read on the day before the effective date of this Act."

     SECTION 2.  Act 5, Special Session Laws of Hawaii 2008, is amended by repealing sections 2 and 3:

     "[SECTION 2.  (a)  The board of trustees of the Hawaii employer-union health benefits trust fund shall conduct a certified independent financial audit of the Hawaii employer-union health benefits trust fund, pursuant to section 87A-24(7), Hawaii Revised Statutes, to cover the Hawaii State Teachers Association, retirees, employees, and employee-beneficiaries who have remained with the Hawaii employer-union health benefits trust fund whether in a bargaining unit or excluded from one, including the State and counties as the employer.  The independent auditor shall consult with the state auditor for purposes of the audit to obtain the necessary information for purposes of subsection (b).  The audit shall be completed no later than twenty days prior to the convening of the regular session of 2010.  The findings and recommendations, including but not limited to methodology and actuarial assumptions, shall be presented to the State auditor for review.

(b)  Based upon the independent financial audit under subsection (a), the state auditor shall make findings and recommendations concerning:

(1)  The benefit cost for each benefit plan, including medical, drug, dental, and vision coverage; and

(2)  Administrative cost for the Hawaii employer-union health benefits trust fund for the plan years July 1, 2006 to June 30, 2007, July 1, 2007 to June 30, 2008, and July 1, 2008 to June 30, 2009.

     (c)  The audit shall include an actuarial certification, to be made by the independent auditor contracted under subsection (a), of the benefit cost for each benefit plan, including medical, drug, dental, and vision, and administrative costs.

     (d)  Based upon the independent financial audit conducted under subsection (a), the state auditor shall make separate findings and recommendations for the Hawaii State Teachers Association voluntary employees' beneficiary association trust for the plan years July 1, 2006 to June 30, 2007, July 1, 2007 to June 30, 2008, and July 1, 2008 to June 30, 2009, in the same manner as set forth under subsections (a), (b), and (c).

     (e) The state auditor shall submit a report of findings and recommendations to the legislature no later than twenty days prior to the convening of the regular session of 2010.

     SECTION 3.  The board of trustees of the Hawaii employer-union health benefits trust fund and the board of trustees of the Hawaii State Teachers Association voluntary employees' beneficiary association trust shall take all necessary and appropriate actions to assist the state auditor for purposes of this Act.]"

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

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By Request