STAND. COM. REP. NO.  1580-12


Honolulu, Hawaii

                , 2012


RE:   S.B. No. 2214

      S.D. 2

      H.D. 2





Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii




     Your Committee on Finance, to which was referred S.B. No. 2214, S.D. 2, H.D. 1, entitled:




begs leave to report as follows:


     The purpose of this measure is to promote meaningful discussion during the negotiation process relating to employer contributions to the Hawaii Employer-Union Health Benefits Trust Fund.  Among other things, this measure:


     (1)  Clarifies the requirement that a public employer and an exclusive representative shall negotiate the state and county contribution amounts to the Hawaii Employer-Union Health Benefits Trust Fund for health benefit plans and group life insurance benefits for active employees by clarifying statutory language and repealing obsolete provisions;


     (2)  Repeals the prohibition against using arbitration to resolve impasses or disputes relating to state and county Hawaii Employer-Union Health Benefits Trust Fund contributions;


     (3)  Authorizes the arbitration panel to make a final and binding decision on Hawaii Employer-Union Health Benefits Trust Fund contributions;


     (4)  Repeals the legislative relief option to determine public sector health benefits contributions when an impasse exists regarding the negotiation of state cost issues; and


     (5)  Repeals the prohibition against striking over the issue of public sector health benefits contributions.


     The Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO and University of Hawaii Professional Assembly testified in support of this measure.  The Departments of Budget and Fiscal Services and Human Resources of the City and County of Honolulu testified in opposition to this measure.  The Department of Budget and Finance provided comments.  


     Your Committee has amended this measure by changing the effective date to July 1, 2030, to promote further discussion.


     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2214, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2214, S.D. 2, H.D. 2.


Respectfully submitted on behalf of the members of the Committee on Finance,