THE SENATE

S.B. NO.

249

TWENTY-EIGHTH LEGISLATURE, 2015

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO employer-union health benefits.

 

 

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

 


     SECTION 1.  The purpose of this Act is to address the annual required contribution by the State to the separate trust fund administered by the board of trustees of the Hawaii employer-union health benefits trust fund for other post-employment benefits.

     Beginning with fiscal year 2016-2017, this Act requires reimbursements from a non-general or federal fund to the general fund for the portion of the annual required contribution made for state employees and retirees whose compensation is or was paid from the non-general or federal fund.

     This Act also includes a technical amendment expressly requiring reimbursements from a non-general or federal fund to the State for health benefits contributions made for state retirees living outside the State.

     SECTION 2.  Section 87A-39, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§87A-39[]]  Reimbursement for state contributions.  (a)  All state agencies having control of funds other than the general fund shall reimburse the State for contributions made by the State pursuant to [sections]:

     (1)  Sections 87A-32, 87A-33, 87A-33.5, 87A-34, 87A-35, 87A-36, and 87A-37; and

     (2)  Section 87A-42(b) or (c), or both;

on account of agency employees whose compensation is or was paid in whole or part from those funds [other than the general fund].

     (b)  All state and county agencies receiving federal funds, which may be expended for the purpose of replacing the contributions payable by the State to the Hawaii employer-union health benefits trust fund, shall set aside a portion of the federal funds sufficient to reimburse the State for contributions made by the State pursuant to [sections]:

     (1)  Sections 87A-32, 87A-33, 87A-33.5, 87A-34, 87A-35, 87A-36, and 87A-37[,]; and

     (2)  Section 87A-42(b) or (c), or both;

on account of the employees in the agencies whose compensation is or was paid in whole or part from those federal funds.

     (c)  The director of finance shall establish the rate or formula for the reimbursements under subsections (a) and (b).  If deemed necessary by the director, the approval of the United States Department of Health and Human Services shall be obtained by the director before imposing the rate or formula on agencies required to make reimbursements.

     (d)  For the purpose of subsections (a)(2) and (b)(2), "contributions" reimbursable from non-general and federal funds includes amounts paid from general excise tax revenues for the state public employer's annual required contribution pursuant to section 87A-42(c)."

     SECTION 3.  (a)  The reimbursement of the general fund from a non-general or federal fund for a portion of the annual required contribution paid for other post-employment benefit obligations, as required under this Act, shall commence from fiscal year 2016-2017.

     (b)  For fiscal years 2016-2017 and 2017-2018, the reimbursements required by this Act shall be based on the annual required contribution actually made by the State pursuant to section 87A-42, Hawaii Revised Statues, as modified by section 11 of Act 268, Session Laws of Hawaii 2013.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Hawaii Employer-Union Health Benefits Trust Fund; Annual Required Contribution, Non-General or Federal Fund Reimbursement

 

Description:

Beginning with fiscal year 2016-2017, requires reimbursements from a non-general or federal fund to the general fund for the annual required contribution made for state employees and retirees whose compensation is or was paid from the non-general or federal fund.

 

 

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