REPORT TITLE:
Public Employees Health Fund


DESCRIPTION:
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 requesting employee organizations. (SD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        104
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 1999                                S.D. 2
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO THE PUBLIC EMPLOYEES HEALTH FUND.



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

 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 public employee
 
10           organizations, including one retiree member of the
 
11           public employees health fund;
 
12 to develop and recommend a proposal to implement an employer-
 
13 union trust concept for determining and administering public
 
14 employee and retiree health benefits.  The state and county
 
15 public employers and the public employee organizations shall each
 
16 appoint a co-chair from among their respective committee members
 
17 to lead the committee.  The retiree member of the public
 
18 employees health fund shall be selected by the governor from a
 
19 list of nominees submitted by the public employees health fund.
 

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

 
 1      (b)  The proposal shall include but not be limited to [a]:
 
 2      (1)  A suggested trust structure and necessary statutory
 
 3           changes to chapters 87 and 89, Hawaii Revised
 
 4           Statutes[.]; and
 
 5      (2)  A plan to incorporate retirees into the trust
 
 6           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      The committee shall:
 
15      (1)  Finalize its proposal to replace the existing public
 
16           employees health fund with a system based on an
 
17           employer-union trust concept in the form of proposed
 
18           legislation that shall be submitted to the legislature
 
19           no later than twenty days prior to the convening of the
 
20           regular session of 2001 for consideration by the
 
21           legislature; and
 
22      (2)  Cease to exist on June 30, 2001.
 

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

 
 1 The committee established by the director of finance shall be
 
 2 exempt from chapters 91, 92, and 92F, Hawaii Revised Statutes."
 
 3      SECTION 2.  Statutory material to be repealed is bracketed.
 
 4 New statutory material is underscored.
 
 5      SECTION 3.  This Act shall take effect upon its approval.