Report Title:

EUTF; Board of Trustees Membership

Description:

Increases the composition of the board of trustees of the EUTF from 10 to 14; amends appointment procedures; amends procedures for filling vacancies; and amends the numbers necessary for quorum. (SD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

1548

TWENTY-THIRD LEGISLATURE, 2005

H.D. 1

STATE OF HAWAII

S.D. 1


 

A BILL FOR AN ACT

 

relating to the employer-union health benefits trust fund.

 

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

SECTION 1. Section 87A-5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§87A-5[]] Composition of board. The board of trustees of the employer-union health benefits trust fund shall consist of [ten] fourteen trustees [appointed by the governor] who shall be categorized and selected as follows:

(1) [Five] Seven trustees, one of whom shall represent retirees, to represent employee-beneficiaries. [The] These trustees shall be [appointed from a list of three nominees per trustee submitted by the exclusive employee representative organizations;] selected by each of the six exclusive representatives of the bargaining units set forth in section 89-6(a) individually selecting one employee-beneficiary trustee, and with the retiree employee-beneficiary trustee being selected by a two-thirds majority vote of the six exclusive representatives who represent the bargaining units set forth in section 89-6(a). As used in this section, the term "exclusive representatives" shall have the same meaning as in section 89-2; and

(2) [Five] Seven trustees to represent public employers[.], all of whom shall be appointed by the governor.

Section 26-34 shall not apply to board member selection and terms."

SECTION 2. Section 87A-6, Hawaii Revised Statutes, is amended to read as follows:

"[[]§87A-6[]] Term of a trustee; vacancy. The term of office of each trustee shall be [four years; provided that a trustee may be reappointed for one additional consecutive four-year term. Each term shall commence on January 1 and expire on December 31. The governor may reduce the terms of those initially appointed so as to provide, as far as practicable, for the expiration of an equal number of terms at intervals of one year.] at the pleasure of the person, entity, or entities that appointed or selected that trustee.

A vacancy on the board shall be filled [by appointment of the governor;] in the same manner as the trustee who vacated that position was appointed or selected; provided that the criteria used for appointing or selecting the successor shall be the same criteria used for appointing or selecting the person's predecessor. [The person appointed to fill a vacancy shall serve for the remainder of the term of the person's predecessor.

If by the end of a trustee's term a trustee is not reappointed or the trustee's successor is not appointed, the trustee shall serve until the trustee's successor is appointed.]"

SECTION 3. Section 87A-11, Hawaii Revised Statutes, is amended to read as follows:

"[[]§87A-11[]] Quorum; board actions; voting. (a) [Six] Eight trustees, [three] four of whom represent the public [employer] employers and [three] four of whom represent employee-beneficiaries, shall constitute a quorum for the transaction of business.

(b) Trustees representing the public employers shall collectively have one vote. Trustees representing the employee-beneficiaries shall collectively have one vote.

For any vote of the trustees representing the public employers to be valid, [three] four of these trustees must concur to cast such a vote. In the absence of such concurrence, the trustees representing the public employers shall be deemed to have abstained from voting.

For any vote of the trustees representing the employee-beneficiaries to be valid, [three] four of these trustees must concur to cast such a vote. In the absence of such concurrence, the trustees representing the employee-beneficiaries shall be deemed to have abstained from voting.

An abstention shall not be counted as either a vote in favor or against a matter before the board.

(c) Any action taken by the board shall be by the concurrence of at least two votes. In the event of a tie vote on any motion, the motion shall fail. Upon the concurrence of [six] four trustees representing the public employers and four trustees[,] representing employee-beneficiaries the board shall participate in dispute resolution."

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

SECTION 5. This Act shall take effect upon its approval.