STAND. COM. REP. 1267

Honolulu, Hawaii

, 2003

RE: S.B. No. 789

S.D. 1

H.D. 2

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 789, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC EMPLOYEE HEALTH BENEFITS,"

begs leave to report as follows:

The purpose of this bill is to:

(1) Establish base monthly employer contribution rates for retiree health benefit plans beginning July 1, 2004;

(2) Clarify that the employer's base composite monthly contribution shall be adjusted annually, beginning July 1, 2005;

(3) Require the adjusted base monthly contribution to be computed using the actual contracted premium rate for Medicare and non-Medicare self and family health benefit plans with the highest actual contracted premium rate as of July 1, 2004; and

(4) Appropriate $12,500,000 for fiscal year 2004-2005 for additional employer contributions for state retiree health benefit plans.

The Department of Budget and Finance, Hawaii State Retired Teachers Association, Oahu Retired Teachers Association, and Hawaii State Teachers Association – Retired testified in support of this measure. The Hawaii State Teachers Association and Hawaii Government Employees Association Retirees Unit supported the intent of this measure.

Your Committee has amended this bill by changing the effective date to July 1, 2010, to facilitate 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. 789, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 789, S.D. 1, H.D. 2.

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

 

____________________________

DWIGHT Y. TAKAMINE, Chair