STAND. COM. REP. 2329

Honolulu, Hawaii

, 2004

RE: S.B. No. 2355

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Labor, to which was referred S.B. No. 2355 entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC EMPLOYEE HEALTH BENEFITS,"

begs leave to report as follows:

The purpose of this measure is to clarify that a public employee with credited service prior to July 1, 1996, who experiences a break in service prior or subsequent to July 1, 1996 shall qualify for the retirement health benefits plan as it existed prior to July 1, 1996.

Testimony in support of this measure was submitted by the Hawaii Government Employees Association.

The Department of Budget and Finance submitted comments on this measure.

Your Committee finds that an employee, initially hired prior to July 1, 1996, who has qualified for health benefits upon retirement, but subsequently returns to public service, may be treated as a new employee for purposes of receiving health benefits under the Hawaii Employer-Union Health Benefits Trust Fund. Because it is not clear under the current law as to how these individuals will be treated, further clarification is necessary.

Therefore, your Committee determines that further clarification will help to ensure that these individuals are assured the receipt of the same retirement health benefits plan as it existed when they were initially hired, prior to July 1, 1996.

Accordingly, your Committee has amended this measure as follows:

(1) By amending section 87A-33(a), HRS, to specify that an employee specifically excluded under section 87A-35(a) is subject to section 87A-33;

(2) By clarifying that an employee who is specifically excluded from section 87A-35, HRS, pursuant to subparagraphs (a)(1) and (2) of that section, is subject to section 87A-33, HRS; and

(3) By clarifying that an employee hired prior to July 1, 1996 must have at least ten years of credited service prior to a break in service to be subject to section 87A-33, HRS.

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2355, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2355, S.D. 1, and be referred to the Committee on Ways and Means.

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

____________________________

BRIAN KANNO, Chair