Report Title:

Health Benefits; Trust Fund

Description:

Delays to 7/1/2004 the transition from the PEHF to the Hawaii employer-union health benefits trust fund. Allows labor unions and carriers, in addition to PEHF, to extend current contracts to 6/30/2004 without regard to health insurance rate regulation. Extends lapsing date of appropriated $300,000 to 6/30/2004.

HOUSE OF REPRESENTATIVES

H.B. NO.

328

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

public employee health benefits.

 

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

SECTION 1. Act 88, Session Laws of Hawaii 2001, is amended by amending section 4 to read as follows:

"SECTION 4. Effective July 1, [2003,] 2004, all positions and employees of the Hawaii public employees health fund who are subject to chapters 76, Hawaii Revised Statutes, shall be transferred to the Hawaii employer-union health benefits trust fund. All officers and employees whose functions are transferred by this Act shall be transferred with their functions and shall continue to perform their regular duties upon their transfer, subject to the state personnel laws and this Act.

All civil service positions and incumbents of the Hawaii public employees health fund transferred by this Act shall remain in the civil service and subject to chapters 76 and 77, Hawaii Revised Statutes; provided that in the event the civil service administrator position becomes vacant prior to July 1, [2003,] 2004, its successor shall be appointed pursuant to section 87-28 as amended in section 2 of this Act. When such positions are vacated on or after July 1, [2003,] 2004, the positions shall be exempt from civil service and prospective appointments shall be made pursuant to section 1 of this Act.

No officer or employee of the State having tenure shall suffer any loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefit or privilege as a consequence of this Act, and such officer or employee may be transferred or appointed to a civil service position without the necessity of examination; provided that the officer or employee possesses the minimum qualifications for the position to which transferred or appointed; and provided that subsequent changes in status may be made pursuant to the applicable civil service and compensation laws.

In the event that an office or position held by an officer or employee having tenure is abolished, the officer or employee shall not thereby be separated from public employment, but shall remain in the employment of the State with the same pay and classification and shall be transferred to some other office or position for which the officer or employee is eligible under the personnel laws of the State as determined by the head of the department or the governor."

SECTION 2. Act 88, Session Laws of Hawaii 2001, is amended by amending section 5 to read as follows:

"SECTION 5. All appropriations, assets, including funds to be refunded to employees and any funds in benefit plans and cafeteria plans, records, equipment, machines, computer software and hardware, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the Hawaii public employees health fund shall be transferred to the Hawaii employer-union health benefits trust fund, effective July 1, [2003.] 2004."

SECTION 3. Act 88, Session Laws of Hawaii 2001, section 6, is amended by amending subsection (a) to read as follows:

"(a) The governor shall appoint all trustees of the Hawaii employer-union health benefits trust fund no later than December 31, 2001. The trustees representing employee-beneficiaries shall serve four-year staggered terms; provided that the initial appointments shall be as follows: two members shall be appointed for four years; two members shall be appointed for three years; and one member shall be appointed for two years.

When submitting the list of nominees for the trustees representing the employee-beneficiaries, the exclusive employee representative organizations shall indicate preferences for the length of the trustee's term for each set of nominees recommended to the governor.

(b) Upon appointment, the board of trustees of the Hawaii employer-union health benefits trust fund may develop and issue rules, policies, and procedures, and contract for health benefits plans and group life insurance benefits plans, [which] and such contracts shall become effective on July 1, [2003.] 2004. The board of trustees and administrator of the Hawaii public employees health fund shall give necessary assistance to the board of trustees of the Hawaii employer-union health benefits trust fund during the transition."

SECTION 4. Act 88, Session Laws of Hawaii 2001, is amended by amending section 7 to read as follows:

"SECTION 7. [Notwithstanding chapter 103D, Hawaii Revised Statutes, the] The board of trustees of the Hawaii public employees health fund under chapter 87, Hawaii Revised Statutes, employee organizations, and insurance carriers may extend current health benefits and life insurance plan contracts through June 30, [2003.] 2004 without having to comply with chapter 103D and article 14F or chapter 431, Hawaii Revised Statutes."

SECTION 5. Act 88, Session Laws of Hawaii 2001, is amended by amending section 8 to read as follows:

"SECTION 8. There is appropriated out of the general revenues of the State of Hawaii the sum of $300,000 or so much thereof as may be necessary for fiscal [year] years 2001-2002, 2002-2003, and 2003-2004 to carry out the purposes of this Act, including the hiring of necessary staff, consultants, and other administrative expenses. All unexpended and unencumbered balances of the appropriation made by this section as of the close of business on June 30, 2002, shall not lapse and shall be carried over and may be expended during fiscal [year] years 2002-2003 and 2003-2004; provided that on June 30, [2003,] 2004, all unexpended and unencumbered balances shall lapse into the general fund of the State.

The sum appropriated shall be expended by the department of budget and finance for the purposes of this Act."

SECTION 6. Act 88, Session Laws of Hawaii 2001, is amended by amending section 10 to read as follows:

"SECTION 10. This Act shall take effect on July 1, 2001; provided that:

(1) Section 3 shall take effect on July 1, [2003] 2004; and

(2) All rules governing the Hawaii public employees health fund under chapter 87, Hawaii Revised Statutes, if not contrary to this Act, shall remain in effect until such time that the Hawaii employer-union health benefits trust fund adopts new rules."

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect upon its approval.

INTRODUCED BY:

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