HOUSE OF REPRESENTATIVES	H.B. NO.	175
TWENTY-SIXTH LEGISLATURE, 2011
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to the employer-union health benefits trust fund.

 

 

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

 

     SECTION 1.  The legislature finds that the counties need representation on the board of trustees of the Hawaii employer-union health benefits trust fund.  The counties contribute a substantial amount to the fund and the health and well-being of their employees and retirees depend on the benefit decisions made by the board of trustees.  Despite their lack of representation, as public employers, the counties are affected by board decisions.  In a recent case brought by retirees objecting to board of trustees benefit decisions, the counties were joined in the lawsuit even though they did not have any part in making the decisions.

     The purpose of this Act is to require that one of the five seats on the board allocated to public employers be occupied by a member appointed by the mayors of all four counties and approved by the Hawaii State Association of Counties, who will provide fiscal expertise and knowledge of county finances and the county workplace.  This requirement will enable the effect of proposed benefit changes on the county's workplace and finances to be adequately considered in board decisions.

     SECTION 2.  Section 87A-5, Hawaii Revised Statutes, is amended to read as follows:

     "§87A-5  Composition of board.  The board of trustees of the employer-union health benefits trust fund shall consist of ten trustees appointed [by the governor] in accordance with the following procedure:

     (1)  Five trustees[,] appointed by the governor, one of whom shall represent retirees, to represent employee-beneficiaries and to be selected as follows:

         (A)  Three trustees shall be appointed from a list of two nominees per trustee selected by each of the three exclusive representative organizations that have the largest number of employee-beneficiaries;

         (B)  One trustee shall be appointed from a list of two nominees selected by mutual agreement of the remaining exclusive employee representative organizations; and

         (C)  One trustee representing retirees shall be appointed from a list of two nominees selected by mutual agreement of all eligible exclusive representatives; and

     (2)  Five trustees to represent public employers[.], four of whom shall be appointed by the governor, and one of whom shall be appointed by unanimous agreement of the mayors of each of the four counties and approved by the Hawaii State Association of Counties to represent the city and county of Honolulu and the counties of Hawaii, Maui, and Kauai.

     Section 26-34 shall not apply to board member selection and terms.  Notwithstanding any other provision of this section, no exclusive representative of a bargaining unit that sponsors or participates in a voluntary employee beneficiary association shall be eligible to select nominees or to be represented by a trustee on the board.

     As used in this section, the term "exclusive representative" shall have the same meaning as in section 89-2."

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

SECTION 4.  This Act shall take effect upon its approval.

 

INTRODUCED BY:	_____________________________
	By Request

 

 

Report Title:

HSAC Package; Employer-Union Health Benefits Trust Fund; Counties

 

Description:

Requires one of the members of the EUTF board of trustees to be appointed by agreement of the mayors of the four counties and approved by the Hawaii State Association of Counties.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.