REPORT TITLE:
Prepaid Health Care Act


DESCRIPTION:
Removes the provision limiting, to 1.5% of an employee's wages,
an employee's contribution toward healthcare premiums for
coverage required under the Act, and replaces it with the
requirement that the employee's contribution shall not reduce the
employee's wages to less than the minimum wage.  (HB2919 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2919
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO HEALTH CARE COVERAGE.



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

 1      SECTION 1.  Section 393-13, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "[[]393-13[]]  Liability for payment of premium;
 
 4 withholding; recovery of premium.  (a)  Unless an applicable
 
 5 collective bargaining agreement specifies differently, every
 
 6 employer shall contribute at least one-half of the premium for
 
 7 the coverage required by this chapter and the employee shall
 
 8 contribute the balance; provided that [in]:
 
 9      (1)  In no case shall the [employee contribute more than 1.5
 
10           per cent of the employee's wages;] employee's
 
11           contribution reduce the employee's wages to less than
 
12           the minimum wage; and [provided that if]
 
13      (2)  If the amount of the employee's contribution is less
 
14           than one-half of the premium, the employer shall be
 
15           liable for the whole remaining portion of the premium.
 
16      (b)  The employer shall withhold the employee's share from
 
17 the employee's wages with respect to pay periods as specified by
 
18 the director.
 
19      (c)  If an employee separates from the employee's employment
 
20 after the employee's employer has prepaid the employee's share of
 

 
Page 2                                                     2919
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 the cost of providing health care coverage, the employer may
 
 2 deduct an amount not to exceed one-half of the premium cost [but
 
 3 without regard to the 1.5 per cent limitation,] from the last
 
 4 salary or wages due the employee, or seek other appropriate means
 
 5 to recover the premium."
 
 6      SECTION 2.  Statutory material to be repealed is bracketed.
 
 7 New statutory material is underscored.
 
 8      SECTION 3.  This Act shall take effect sixty days after
 
 9 congressional approval.