STAND. COM. REP. NO. 964

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 546

       H.D. 2

       S.D. 1

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

 

Madam:

 

     Your Committee on Judiciary and Labor, to which was referred H.B. No. 546, H.D. 2, entitled:

 

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

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to convene a task force in the Department of Budget and Finance to examine the unfunded liability of the Hawaii employer-union health benefits trust fund.

 

     Your Committee received testimony in support of this measure from the Department of Budget and Finance; Hawaii Employer-Union Health Benefits Trust Fund Board of Trustees; Department of Human Resources, City and County of Honolulu; Hawaii State Teachers Association; and five individuals.  One individual submitted comments on this measure.

 

     Your Committee finds that the unfunded liability of the Hawaii employer-union health benefits trust fund (EUTF) is substantial and requires collaboration and ingenuity to resolve.  This measure will establish and empower a task force to address this critical issue.

 

     Your Committee hopes that the work of the task force proposed under this measure will provide the Legislature with short- and long-term viable options of various dimensions to reduce the EUTF unfunded liability.  Your Committee believes that a variety of options will assist the Legislature in developing more aggressive and effective solutions, similar to the solutions developed and enacted to reduce the unfunded liability of the Employees' Retirement System.

 

     Your Committee has amended this measure by:

 

     (1)  Adopting the amendment suggested by the Hawaii State Teachers Association and several members of the Hawaii State Teachers Association-Retired to:

 

          (A)  Delete the State's Chief Negotiator, or the Chief Negotiator's designee, as a member of the task force; and

 

          (B)  Add a member representing public employee retirees to the task force;

 

     (2)  Clarifying that the unspecified appropriation to support the task force shall take effect on July 1, 2013; and

 

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 546, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 546, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

 

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

 

 

 

____________________________

CLAYTON HEE, Chair