Public Employees Health Fund

Enables the Employer-Union Trust Concept Committee to continue
its work to proceed with conversion to an employer-union trust
concept for administering public employee and retiree health
benefits.  Specifies 5 members to represent state and county
employers and 5 members requesting employee organizations.  (SD1)

THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Act 309, Session Laws of Hawaii 1996, is amended
 2 by amending section 2 to read as follows:
 3      "SECTION 2.  The director of finance shall establish a
 4 committee comprised of an equal number of representatives from
 5 [state] the following groups:
 6      (1)  One member representing the state public employer and
 7           four members representing the four county public
 8           employers [and public]; and
 9      (2)  Five members representing public employee
10           organizations;
11 to develop and recommend a proposal to implement an employer-
12 union trust concept for determining and administering public
13 employee and retiree health benefits.  The state and county
14 public employers and the public employee organizations shall each
15 appoint a co-chair from among their respective committee members
16 to lead the committee.  The committee shall also include one
17 retiree member of the public employees health fund, who shall be
18 selected by the governor from a list submitted by the public
19 employees health fund.

Page 2                                                     366
                                     S.B. NO.           S.D. 1

 1      The proposal shall include but not be limited to [a]:
 2      (1)  A suggested trust structure and necessary statutory
 3           changes to chapters 87 and 89, Hawaii Revised
 4           Statutes[.]; and
 5      (2)  A plan to incorporate retirees into the trust
 6           structure.
 7      The director of finance shall submit [a report] three
 8 progress reports on the proposal to the legislature no later than
 9 November 21, 1999, May 15, 2000, and November 21, 2000,
10 respectively.  The committee shall also submit annual action
11 plans on the proposal to the legislature no later than [twenty
12 days prior to the convening of the regular session of 1997.]
13 November 1, 1999, and November 1, 2000.  The committee shall:
14      (1)  Finalize its proposal to replace the existing public
15           employees health fund with a system based on an
16           employer-union trust concept in the form of proposed
17           legislation that shall be submitted to the legislature
18           no later than twenty days prior to the convening of the
19           regular session of 2001 for consideration by the
20           legislature; and
21      (2)  Cease to exist on June 30, 2001.
22 The committee established by the director of finance shall be
23 exempt from chapters 91, 92, and 92F, Hawaii Revised Statutes."

Page 3                                                     366
                                     S.B. NO.           S.D. 1

 1      SECTION 2.  Statutory material to be repealed is bracketed.
 2 New statutory material is underscored.
 3      SECTION 3.  This Act shall take effect upon its approval.