HOUSE OF REPRESENTATIVES

H.B. NO.

777

TWENTY-SIXTH LEGISLATURE, 2011

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO the HEALTH FUND.

 

 

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

 


     SECTION 1.  The purpose of this Act is to address the health fund contributions and reimbursements by the State for retired state employees and their dependent-beneficiaries.  More specifically, this Act establishes a formula for the reimbursement of the state general fund from non-general funds for such payments.

     The legislature finds that the formula established under this Act is reasonable.  The legislature realizes that actually identifying the specific amounts of non-general funds that should apply to each individual retired state employee would be excessively cumbersome and impractical.  Thus, the legislature chooses to establish a reasonable formula.

     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] section 87A-32[, 87A-33, 87A-34 87A-35, 87A-36, and 87A-37] on account of active agency employees whose compensation is paid in whole or part from 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 fund, shall set aside a portion of the federal funds sufficient to reimburse the State for contributions made by the State pursuant to [sections] section 87A-32[, 87A-33, 87A-34, 87A-35, 87A-36, and 87A-37,] on account of the active employees in the agencies whose compensation is paid in whole or part from federal funds.

     (b)  During each fiscal year, the State shall pay for the contributions and reimbursements for retired state employees and their qualified dependent-beneficiaries under sections 87A-23, 87A-33, 87A-33.5, 87A-34, 87A-35, 87A-36, and 87A-37 with general funds; provided that part of the payment shall be reimbursed from non-general funds in the manner calculated according to this subsection as follows:

     (1)  First, the sum of the State's contribution to the employees' retirement system in fiscal years 1990‑1991, 1991-1992, 1992-1993, 1993-1994, and 1994-1995 shall be calculated;

     (2)  Second, of the sum under paragraph (1), the proportion contributed by each non-general fund shall be calculated;

     (3)  Third, the proportion of each non-general fund contribution calculated under paragraph (2) shall be applied to the total payment by the State during the fiscal year for retired state employees and their qualified dependent-beneficiaries under sections 87A‑23, 87A-33, 87A-33.5, 87A-34, 87A-35, 87A-36, and 87A-37; and

     (4)  The dollar amount calculated for each non-general fund contribution under paragraph (3) shall be the amount to be reimbursed from that non-general fund to the general fund for that fiscal year; provided that:

         (A)  A non-general fund currently in existence that has had its name, purpose, or revenue source amended since the period specified under paragraph (1) shall be deemed the same non-general fund;

         (B)  If a non-general fund that existed during the period specified under paragraph (1) no longer exists, then there shall be no reimbursement from that non-general fund; and

         (C)  No reimbursement shall be made from any federal fund, even if contributions were made from that federal fund to the employees' retirement system during the period specified under paragraph (1).

     The director of finance shall make the reimbursements from each non-general fund within sixty days after the end of the applicable fiscal year."

     SECTION 3.  Section 87A-39(b), Hawaii Revised Statutes, shall apply commencing with fiscal year 2010-2011, and the reimbursement for that fiscal year from non-general funds to the general fund, as required by that subsection, shall be made within sixty days at the end of that fiscal year.

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

     SECTION 5.  This Act shall take effect on July 1, 2011.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Employer-Union Health Benefits Trust Fund

 

Description:

Establishes a formula for the reimbursement of the state general fund from non-general funds for health fund contributions for retired state employees.

 

 

 

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