Public Employees Health Fund

Enables the Employer-Union Trust Concept Committee to continue
its work to proceed with conversion to an employer-union trust
concept for administering public employee and retiree health
benefits.  Specifies 5 members to represent state and county
employers and 5 members representing different employee
organizations. (HB104 CD1)

HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 1999                                S.D. 2
STATE OF HAWAII                                            C.D. 1

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Act 309, Session Laws of Hawaii 1996, is amended
 2 by amending section 2 to read as follows:
 3      "SECTION 2.  (a)  The director of finance shall establish a
 4 committee comprised of [representatives from state] the
 5 following:
 6      (1)  One member representing the state public employer and
 7           four members representing the four county public
 8           employers [and public]; and
 9      (2)  Five members representing different public employee
10           organizations, including one retiree member of the
11           public employees health fund; provided that the retiree
12           member of the public employees health fund shall be
13           selected by the governor from a list of nominees
14           submitted by the public employees health fund;
15 to develop and recommend a proposal to implement [an employer-
16 union trust concept] alternative concepts for determining and
17 administering public employee and retiree health benefits.  The
18 state and county public employers and the public employee
19 organizations shall each appoint a co-chair from among their
20 respective committee members to lead the committee.

Page 2                                                     104
                                     H.B. NO.           H.D. 1
                                                        S.D. 2
                                                        C.D. 1

 1      (b)  The proposal shall include but not be limited to [a
 2 suggested trust structure]:
 3      (1)  Suggested alternative structures and necessary
 4           statutory changes to chapters 87 and 89, Hawaii Revised
 5           Statutes[.]; and
 6      (2)  A plan to incorporate retirees into any new structure.
 7      (c)  The director of finance shall submit [a report] three
 8 progress reports on the proposal to the legislature no later than
 9 November 21, 1999, May 15, 2000, and November 21, 2000,
10 respectively.  The committee shall also submit two annual action
11 plans on the proposal to the legislature no later than [twenty
12 days prior to the convening of the regular session of 1997.]
13 November 1, 1999, and November 1, 2000.
14      (d)  The committee shall and any committee member or group
15 of members may, finalize a proposal to replace the existing
16 public employees health fund with a system based on alternative
17 concepts in the form of proposed legislation that shall be
18 submitted to the legislature no later than twenty days prior to
19 the convening of the regular session of 2001 for consideration by
20 the legislature.
21      (e)  The committee shall cease to exist on June 30, 2001.
22      (f)  The committee established by the director of finance
23 shall be exempt from chapters 91, 92, and 92F, Hawaii Revised
24 Statutes."

Page 3                                                     104
                                     H.B. NO.           H.D. 1
                                                        S.D. 2
                                                        C.D. 1

 1      SECTION 2.  Statutory material to be repealed is bracketed.
 2 New statutory material is underscored.
 3      SECTION 3.  This Act shall take effect upon its approval.