CONFERENCE COMMITTEE REP. NO. 144

 

Honolulu, Hawaii

                 , 2013

 

RE:    H.B. No. 546

       H.D. 2

       S.D. 2

       C.D. 1

 

 

 

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

 

Sir and Madam:

 

     Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 546, H.D. 2, S.D. 2, entitled:

 

"A BILL FOR AN ACT RELATING TO THE HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUND,"

 

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

 

     The purpose of this measure is to reduce the unfunded liability of the Hawaii Employer-Union Health Benefits Trust Fund (EUTF).

 

     More specifically, this measure:

 

(1)  Convenes and appropriates funds for a task force placed within the Department of Budget and Finance to examine the unfunded liability of the EUTF;

 

(2)  Requires, rather than authorizes, the Board of Trustees of the EUTF to establish a separate trust fund to receive employer contributions to prefund other post-employment health and other benefit plan costs for retirees and their beneficiaries;

 

(3)  Requires public employers to pay actuarially-determined, annual required contributions to the trust fund;

 

(4)  Uses general excise tax revenues and transient accommodations tax revenues or other sources of revenue to supplement deficient payments by state public employers and county public employers, respectively;

 

(5)  Requires full payments of the annual required contribution commencing with fiscal year 2018-2019, with a transitional schedule of payments commencing with fiscal year 2014-2015; and

 

(6)  Requires and appropriates funds for the Director of Finance to develop an implementation plan with regard to:

 

(A)  The sharing of investment information, advice, and services between the Employees' Retirement System and the EUTF for the investment of moneys in the separate trust fund; and

 

(B)  Procedures for the receipt of payments from county public employers into the separate trust fund.

 

     After careful deliberation, your Committee on Conference has amended this measure by:

 

(1)  Specifying the amounts of the appropriations for both the task force and the implementation plan;

 

(2)  Changing the effective date to July 1, 2013; and

 

(3)  Making technical nonsubstantive amendments for style, clarity, and consistency.

 

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 546, H.D. 2, S.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 546, H.D. 2, S.D. 2, C.D. 1.

 

Respectfully submitted on behalf of the managers:

 

ON THE PART OF THE SENATE

 

ON THE PART OF THE HOUSE

 

____________________________

CLAYTON HEE, Chair

 

____________________________

MARK M. NAKASHIMA, Co-Chair

____________________________

DAVID Y. IGE, Co-Chair

 

____________________________

SYLVIA LUKE, Co-Chair