Report Title:

Public Employees Health Fund; ERS

 

Description:

Transfers functions of the public employees health fund to the employees' retirement system.

 

HOUSE OF REPRESENTATIVES

H.B. NO.

1575

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to the hawaii public employees health fund and the employees' retirement system of the state of hawaii.

 

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

SECTION 1. The purpose of this Act is to transfer the functions of the public employees health fund to the employees’ retirement system.

SECTION 2. Section 87-1, Hawaii Revised Statutes, is amended by amending the definition of "board" to read:

"(1) "Board" or "board of trustees" means the board of trustees [as described in section 87-11;] of the employees' retirement system of the State of Hawaii established in chapter 88, part II, subpart A;"

SECTION 3. Sections 87-11 to 87-16, Hawaii Revised Statutes, are repealed.

["BOARD OF TRUSTEES

§87-11 Composition of board. The board of trustees shall consist of nine trustees, three of whom shall be representatives from different organizations representing public employees, three from different private business organizations, a member of the clergy, a teacher, and the director of finance or a designated representative.

§87-12 Appointment and removal of trustees. Each trustee shall be appointed by the governor, provided that no person who is a medical physician, dentist nor any employee, officer, or agent of any hospital, medical association, medical society, dental association, dental society, carrier, potential carrier, or any insurance company or association, or board of insurance underwriters shall be appointed.

Each trustee shall accept the trustee's appointment in writing.

A trustee may be removed by the governor for good cause.

§87-13 Term of a trustee; vacancy. Except for the director of finance, the term of office of each trustee shall be four years. The director of finance shall serve during the director's term of office as director of finance.

A vacancy on the board of trustees shall be filled by appointment of the governor. 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 the 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.

§87-14 Chairperson and secretary-treasurer. The trustees shall select one of their members to serve as a chairperson and one to serve as secretary-treasurer of the board of trustees.

§87-15 Compensation and expenses of a trustee. Each trustee shall serve without compensation, but the trustee may be reimbursed from the fund for any necessary expense made in behalf of the fund.

§87-16 Legal adviser. The attorney general shall serve as legal adviser to the board of trustees."]

SECTION 4. Sections 87-31 to 87-34, Hawaii Revised Statutes, are repealed.

["PROCEDURE OF THE BOARD

§87-31 Meetings; notice. The chairperson may call a meeting of the board of trustees at any time by giving at least seven days' written notice of the time and place of the meeting to all other trustees.

Any two trustees may call a meeting of the board by giving at least ten days' written notice of the time and place to all other trustees.

A meeting of the board may be called at any time without notice if all trustees agree.

§87-32 Quorum. Five trustees shall constitute a quorum to transact business.

§87-33 Voting power; majority. Each trustee shall have one vote. Any action taken shall be by a simple majority of trustees present at a meeting. If the vote on any matter is deadlocked, every trustee of the board of trustees shall cast a vote.

§87-34 Records and minutes. The board of trustees shall keep records and minutes of all meetings of the board."]

SECTION 5. All rights, powers, functions, and duties of the Hawaii public employees health fund are transferred to the employees' retirement system of the State of Hawaii.

All officers and employees whose functions are transferred by this Act shall be transferred with their functions and shall continue to perform their regular duties upon their transfer, subject to the state personnel laws and this Act.

No officer or employee of the State having tenure shall suffer any loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefit or privilege as a consequence of this Act, and such officer or employee may be transferred or appointed to a civil service position without the necessity of examination; provided that the officer or employee possesses the minimum qualifications for the position to which transferred or appointed; and provided that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.

An officer or employee of the State who does not have tenure and who may be transferred or appointed to a civil service position as a consequence of this Act shall become a civil service employee without the loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefits or privileges and without the necessity of examination; provided that such officer or employee possesses the minimum qualifications for the position to which transferred or appointed.

If an office or position held by an officer or employee having tenure is abolished, the officer or employee shall not thereby be separated from public employment, but shall remain in the employment of the State with the same pay and classification and shall be transferred to some other office or position for which the officer or employee is eligible under the personnel laws of the State as determined by the head of the department or the governor.

SECTION 6. All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the Hawaii public employees health fund relating to the functions transferred to the employees' retirement system of the State of Hawaii shall be transferred with the functions to which they relate.

SECTION 7. All rules, policies, procedures, guidelines, and other material adopted or developed by the Hawaii public employees health fund to implement provisions of the Hawaii Revised Statutes which are reenacted or made applicable to the employees’ retirement system by this Act, shall remain in full force and effect until amended or repealed by the board of trustees of the employees’ retirement system pursuant to chapter 91, Hawaii Revised Statutes. In the interim, every reference to the Hawaii public employees health fund or the board of trustees of the Hawaii public employees health fund in those rules, policies, procedures, guidelines, and other material is amended to refer to the employees’ retirement system or the board of trustees of the employees’ retirement system as appropriate.

SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 9. This Act shall take effect upon its approval.

INTRODUCED BY:

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