STAND. COM. REP. NO. 1316

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1290

       H.D. 1

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

 

Madam President:

 

     Your Committee on Judiciary and Labor, to which was referred H.B. No. 1290, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO THE HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUND,"

 

begs leave to report as follows:

 

     The purpose of this measure is to eliminate confusion and/or misinterpretations regarding which "beneficiaries" of an employee killed in the performance of duty or of a deceased retiree are eligible to become EUTF employee-beneficiaries including reciprocal beneficiaries.

 

     Testimony in support of this measure was received from HGEA/AFSCME Local 152, AFL-CIO and one private citizen.  ILWU Local 142 submitted testimony in support of the original intent. Opposing testimony was received from The Gay Lesbian, Bisexual and Transgendered Caucus of the Democratic Party; the GLEA Foundation and the Department of Department of Budget and Finance and the Hawaii Employer-Union Health Benefits Trust Fund. 

 

     Based on the testimony presented, your Committee finds that including reciprocal beneficiaries, although well intended, may have a negative impact on the fund. Until, the EUTF can analyze the impact of adding this new category may have on the EUTF, your Committee will not advance this proposal.  The Committee has amended the bill to revert to the original provisions and added several amendments to prevent discrimination to any present class of beneficiaries by diminishing their benefits and to provide protection to the EUTF beneficiaries against any breaches of fiduciary duty.  These protections mirror the protections that EUTF imposed on the VEBA.

 

     Your Committee further amended the bill by adding a provision that when there is a default in the selection of a plan, that the default would revert to the lowest bidder.  This would provide savings for the member and EUTF.

 

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1290, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1290, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

 

 

 

____________________________

CLAYTON HEE, Chair