STAND. COM. REP. NO.  357-10

 

Honolulu, Hawaii

                , 2010

 

RE:   H.B. No. 2204

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Sir:

 

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 2204 entitled:

 

"A BILL FOR AN ACT MAKING AN APPROPRIATION FOR COLLECTIVE BARGAINING COST ITEMS,"

 

begs leave to report as follows:

 

     The purpose of this bill is to fund the Hawaii employer-union health benefits trust fund (EUTF) costs contained in the agreement with the exclusive bargaining representative of collective bargaining units for the employees in collective bargaining units (2), (3), (4), (6), (8), (9), and (13).

 

     The Hawaii Government Employees' Association and the University of Hawaii Professional Assembly testified in support of this bill.  The Department of the Attorney General (AG) opposed this measure.  The Department of Budget and Finance (B&F) provided comments.

 

     The current fiscal situation facing the State resulted in ongoing negotiations with the exclusive bargaining representatives of the various public sector collective bargaining units over salaries and benefits.  Although the parties involved with the negotiations concerning bargaining units (2), (3), (4), (6), (8), (9), and (13) reached agreement on numerous issues, they were unable to resolve differences concerning the contribution amounts paid by the employers (State and counties) toward health benefit plan costs.  While the current law allows negotiations over these amounts to occur, it also prohibits the use of binding arbitration to resolve disputes relating to employer contributions to the EUTF.  However, in a letter of understanding, the parties involved agreed to submit this issue to the Legislature for resolution.  This measure is a result of that decision.

 

     Nevertheless, your Committee does note the concerns raised by B&F and the AG concerning the use of percentages of health premium costs rather than specific dollar amounts and the time period this measure covers.  Accordingly, your Committee has amended this measure by:

 

     (1)  Removing language specifying that the employer pay 60 percent of the health premium costs for employees, and instead simply making the payment an unspecified dollar amount;

 

     (2)  Specifying that the funding contained in this bill only applies to fiscal year 2010–2011, as the letter of understanding between the parties stipulated that the employer continue to pay the same dollar amount as in fiscal year 2008–2009 for fiscal year 2009-2010 only;

 

     (3)  Requiring the employer to pay 100 percent of the EUTF's monthly administrative fees for fiscal year 2010-2011;

 

     (4)  Changing the effective date to July 1, 2010; and

 

     (5)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

 

     Yet, your Committee also recognizes that public employees have also faced an approximately 24 percent increase in health care premiums while also experiencing furlough days that have resulted in reduced salaries.  As such, your Committee respectfully requests that the Committee on Finance consider a cost-sharing split for health premium costs of 55 percent and 45 percent for employers and employees respectively when determining the exact amount of funds to be placed in this measure, and that this consideration only be given for the 2010-2011 fiscal year.  Future percentage divisions for health premiums can be decided through collective bargaining.


     As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2204, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2204, H.D. 1, and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

 

 

 

 

____________________________

KARL RHOADS, Chair