STAND. COM. REP. NO. 2589

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 2849

       S.D. 2

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 2849, S.D. 1, entitled:

 

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

 

begs leave to report as follows:

 

     The purpose of this measure is to make reforms to the Hawaii Employer-Union Health Benefits Trust Fund to improve its accountability and efficiency.

 

Specifically, the measure:

 

(1)  Imposes fiduciary duties upon the fiduciaries of the Employer-Union Health Benefits Trust Fund and establishes liability for breach of fiduciary duty;

 

(2)  Exempts the procurement of certain services relating to the trust fund from the procurement code;

 

(3)  Modifies the size, composition, term limits, and appointment process of the Board of Trustees of the Employer-Union Health Benefits Trust Fund;

 

(4)  Authorizes the Board of Trustees to retain independent legal counsel; and

 

(5)  Transfers jurisdiction over the Hawaii Employer-Union Health Benefits Trust Fund from the Department of Budget and Finance to the Department of Human Resources Development.

 

     Your Committee received written comments in opposition to this measure from the Department of Budget and Finance.  The written comments may be reviewed on the Legislature's website.

 

     Your Committee finds that this measure will improve the accountability and efficiency of the Hawaii Employer-Union Health Benefits Trust Fund.  The revised composition of the Board of Trustees will provide efficient and effective trust fund operation with respect to negotiated health benefits.

 

     Your Committee has amended this measure by:

 

(1)  Requiring the Director of Human Resources Development to report to the Legislature prior to the Regular Sessions of 2013 and 2015 on the cost effectiveness of the amendments made by this measure;

 

(2)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure;

 

(3)  Repealing this measure on July 1, 2015; and

 

(4)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2849, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2849, S.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

____________________________

DONNA MERCADO KIM, Chair