STAND. COM. REP. NO. 2058

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 2797

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Madam:

 

     Your Committees on Education and Housing and Labor, to which was referred S.B. No. 2797 entitled:

 

"A BILL FOR AN ACT RELATING TO VOLUNTARY EMPLOYEES' BENEFICIARY ASSOCIATION TRUSTS,"

 

beg leave to report as follows:

 

     The purpose of this measure is to make permanent the voluntary employees' beneficiary association trusts originally established as temporary trusts under Act 245, Session Laws of Hawaii 2005.

 

     Testimony in support of this measure was submitted by two private organizations and fifteen individuals.  Testimony in opposition to this measure was submitted by two state agencies and one private organization.  Written testimony presented to the Committees may be reviewed on the Legislature's website.

 

     Your Committees find that additional time is necessary to:

 

     (1)  Debate whether to continue to allow voluntary employees' beneficiary association trusts (VEBA);

 

     (2)  Allow the Hawaii Employer-Union Health Benefits Trust Fund to manage its existing responsibilities and deal with administration changes; and

 

     (3)  Allow further discussion of issues raised by the State Auditor.

 

     Accordingly, your Committees have amended this measure by extending the effective date of Act 245, Session Laws of Hawaii 2005, as amended, to July 1, 2012.  Your Committees note that by inserting a sunset date, sections 89‑2, 89‑3, 89‑6, and 89‑9, Hawaii Revised Statutes, will be reenacted in the form in which they read on June 30, 2012; however, amendments unrelated to VEBA that have been made to these sections since the enactment of Acts 202 and 245, Session Laws of Hawaii 2005, will be retained upon the repeal and reenactment of those sections on July 1, 2012.

 

     As affirmed by the records of votes of the members of your Committees on Education and Housing and Labor that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2797, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2797, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committees on Education and Housing and Labor,

 

____________________________

DWIGHT Y. TAKAMINE, Chair

 

____________________________

NORMAN SAKAMOTO, Chair