HOUSE OF REPRESENTATIVES

H.B. NO.

549

TWENTY-SEVENTH LEGISLATURE, 2013

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO THE HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUND.

 

 

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

 


SECTION 1. The purpose of this Act is to require the automatic transfer of a specified amount of general excise tax revenues to the Hawaii employer-union health benefits trust fund to amortize the unfunded actuarial liability of the trust fund.

This Act is not intended to provide funds for the annual employer contribution toward employee-beneficiary and dependent-beneficiary health benefits plan premium costs or medicare part B reimbursements or the administrative expenses of the trust fund. The legislature intends that those costs and expenses should be paid through the executive budget or other appropriation act.

SECTION 2. Section 237-31, Hawaii Revised Statutes, is amended to read as follows:

"237-31 Remittances. All remittances of taxes imposed by this chapter shall be made by money, bank draft, check, cashier's check, money order, or certificate of deposit to the office of the department of taxation to which the return was transmitted. The department of taxation shall issue its receipts therefor to the taxpayer and shall pay the moneys into the state treasury as a state realization, to be kept and accounted for as provided by law; provided that:

(1) The sum from all general excise tax revenues realized by the State that represents the difference between $45,000,000 and the proceeds from the sale of any general obligation bonds authorized for that fiscal year for the purposes of the state educational facilities improvement special fund shall be deposited in the state treasury in each fiscal year to the credit of the state educational facilities improvement special fund;

(2) A sum, not to exceed $5,000,000, from all general excise tax revenues realized by the State shall be deposited in the state treasury in each fiscal year to the credit of the compound interest bond reserve fund; [and]

(3) A sum from all general excise tax revenues realized by the State that is equal to one-half of the total amount of funds appropriated or transferred out of the hurricane reserve trust fund under sections 4 and 5 of Act 62, Session Laws of Hawaii 2011, shall be deposited into the hurricane reserve trust fund in fiscal year 2013-2014 and in fiscal year 2014-2015; provided that the deposit required in each fiscal year shall be made by October 1 of that fiscal year[.]; and

(4) In each fiscal year beginning with fiscal year 2014-2015, $500,000,000 from all general excise tax revenues realized by the State shall be deposited into the Hawaii employer-union health benefits trust fund and shall continue until such time that the unfunded actuarial accrued liability of the trust fund is fully amortized. No portion of the deposit required under this paragraph shall be used to pay the employer contributions toward the annual employee-beneficiary and dependent-beneficiary health benefits plan premium costs or medicare part B premium reimbursements or administrative expenses of the trust fund. This paragraph shall not prevent the legislature from appropriating by legislative act other general or non-general funds to amortize the unfunded actuarial accrued liability."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2014.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Hawaii Employer-Union Health Benefits Trust Fund; Unfunded Actuarial Accrued Liability

 

Description:

Provides for the automatic deposit of general excise tax revenues into the Hawaii employer-union health benefits trust fund until such time that the trust fund's unfunded actuarial accrued liability is fully amortized. Effective July 1, 2014.

 

 

 

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