Bill Text: HI HB468 | 2021 | Regular Session | Amended
Bill Title: Relating To The Hawaii Employer-union Health Benefits Trust Fund.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2021-07-07 - Act 229, 07/06/2021 (Gov. Msg. No. 1357). [HB468 Detail]
Download: Hawaii-2021-HB468-Amended.html
HOUSE OF REPRESENTATIVES |
H.B. NO. |
468 |
THIRTY-FIRST LEGISLATURE, 2021 |
H.D. 1 |
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STATE OF HAWAII |
S.D. 1 |
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C.D. 1 |
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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 temporarily suspend the requirement
for public employers to make annual required contributions to the Hawaii Employer-Union
Health Benefits Trust Fund through fiscal year 2022-2023.
SECTION 2. Section 87A-24, Hawaii Revised Statutes, is amended to read as follows:
"§87A-24 Other powers. In addition to the power to administer the fund, the board may:
(1) Collect, receive, deposit, and withdraw money on behalf of the fund;
(2) Invest moneys in the same manner specified in section 88-119;
(3) Hold, purchase, sell, assign, transfer, or dispose of any securities or other investments of the fund, as well as the proceeds of those investments and any money belonging to the fund;
(4) Appoint, and at pleasure dismiss, an administrator and other fund staff. The administrator shall be exempt from chapter 76. Other fund staff may be exempt from chapter 76 as determined by the board. The administrator and staff who are exempt from chapter 76 shall serve under and at the pleasure of the board; provided that civil service exempt positions under this section that are created after July 1, 2014, shall be exempt from section 76‑16(b)(17)(A);
(5) Make payments of periodic charges and pay for reasonable expenses incurred in carrying out the purposes of the fund;
(6) Contract for the performance of financial audits of the fund and claims audits of its insurance carriers;
(7) Retain auditors, actuaries, investment firms
and managers, benefit plan consultants, or other professional advisors to carry
out the purposes of this chapter[, including the retaining of an actuary to
determine the annual required public employer contribution for the separate
trust fund established under section 87A-42];
(8) Establish health benefits plan and long-term care benefits plan rates that include administrative and other expenses necessary to effectuate the purposes of the fund; and
(9) Require any department, agency, or employee of the State or counties to furnish information to the board to carry out the purposes of this chapter."
SECTION 3. Section 87A-42, Hawaii Revised Statutes, is amended to read as follows:
"§87A-42 Other post-employment benefits trust. [(a)] Notwithstanding sections 87A-31 and 87A-31.5,
the board, upon terms and conditions set by the board, shall establish and
administer a separate trust fund for the purpose of receiving employer
contributions that will prefund other post-employment health and other benefit
plan costs for retirees and their beneficiaries. The separate trust fund shall meet the
requirements of the Governmental Accounting Standards Board regarding other
post-employment benefits trusts. The board
shall establish and maintain a separate account for each public employer within
the separate trust fund to accept and account for each public employer's
contributions. Employer contributions to
the separate trust fund shall be irrevocable, all assets of the fund shall be
dedicated exclusively to providing health and other benefits to retirees and
their beneficiaries, and assets of the fund shall not be subject to appropriation
for any other purpose and shall not be subject to claims by creditors of the
employers or the board or plan administrator.
The board's powers under section 87A-24 shall also apply to the fund
established pursuant to this section.
[(b) Public employer contributions shall be paid
into the fund in each fiscal year, and commencing with the 2018-2019 fiscal
year, the amount of the annual public employer contribution shall be equal to
the amount of the annual required contribution, as determined by an actuary
retained by the board.
(c) In any fiscal year subsequent to the
2017-2018 fiscal year in which the state public employer's contributions into
the fund are less than the amount of the annual required contribution, the
amount that represents the excess of the annual required contribution over the
state public employer's contributions shall be deposited into the appropriate
account of the separate trust fund from a portion of all general excise tax
revenues collected by the department of taxation under section 237-31.
If any general excise tax
revenues are deposited into the separate trust fund in any fiscal year as a
result of this subsection, the director of finance shall notify the legislature
and governor whether the general fund expenditure ceiling for that fiscal year
would have been exceeded if those revenues had been legislatively appropriated
instead of deposited without appropriation into the trust fund. The notification shall be submitted within
thirty days following the end of the applicable fiscal year.
(d) In any fiscal year subsequent to the 2017-2018
fiscal year in which a county public employer's contributions into the fund are
less than the amount of the annual required contribution, the amount that
represents the excess of the annual required contribution over the county
public employer's contributions shall be deposited into the fund from a portion
of all transient accommodations tax revenues collected by the department of
taxation under section 237D-6.5(b)(4). The
director of finance shall deduct the amount necessary to meet the county public
employer's annual required contribution from the revenues derived under section
237D-6.5(b)(4) and transfer the amount to the board for deposit into the
appropriate account of the separate trust fund.
(e) In any fiscal year subsequent to fiscal year
2017-2018 in which a public employer's contributions into the fund are less
than the amount of the annual required contribution and the public employer is
not entitled to transient accommodations tax revenues sufficient to satisfy the
total amount of the annual required contribution, the public employer's
contributions shall be deposited into the fund from portions of any other
revenues collected on behalf of the public employer or held by the State. The director of finance shall deduct the
amount necessary to meet the public employer's annual required contribution
from any revenues collected on behalf of the public employer held by the State
and transfer the amount to the board for deposit into the appropriate account
of the separate trust fund.
(f) For the purposes of this section,
"annual required contribution" means a public employer's required
contribution to the trust fund established in this section that is sufficient
to cover:
(1) The normal
cost, which is the cost of other post-employment benefits attributable to the
current year of service; and
(2) An amortization
payment, which is a catch-up payment for past service costs to fund the
unfunded actuarial accrued liability over the next thirty years.]"
SECTION 4. 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 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) 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
(2) 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
[(3)] Commencing
with fiscal year 2018-2019, a sum from all general excise tax revenues realized
by the State that represents the difference between the state public employer's
annual required contribution for the separate trust fund established under
section 87A-42 and the amount of the state public employer's contributions into
that trust fund shall be deposited to the credit of the State's annual required
contribution into that trust fund in each fiscal year, as provided in section
87A-42]."
SECTION 5. Section 237D-6.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) Except for the revenues collected pursuant to section 237D-2(e), revenues collected under this chapter shall be distributed in the following priority, with the excess revenues to be deposited into the general fund:
(1) $1,500,000
shall be allocated to the Turtle Bay conservation easement special fund
beginning July 1, 2015, for the reimbursement to the state general fund of debt
service on reimbursable general obligation bonds, including ongoing expenses related to the issuance of the
bonds, the proceeds of which were used to acquire the conservation easement and
other real property interests in Turtle Bay, Oahu, for the protection, preservation,
and enhancement of natural resources important to the State, until the bonds
are fully amortized;
(2) $16,500,000 shall be allocated to the convention center enterprise special fund established under section 201B-8;
(3) $79,000,000 shall be allocated to the tourism special fund established under section 201B-11; provided that:
(A) Beginning on July 1, 2012, and ending on June 30, 2015, $2,000,000 shall be expended from the tourism special fund for development and implementation of initiatives to take advantage of expanded visa programs and increased travel opportunities for international visitors to Hawaii;
(B) Of the $79,000,000 allocated:
(i) $1,000,000 shall be allocated for the operation of a Hawaiian center and the museum of Hawaiian music and dance; and
(ii) 0.5 per cent of the $79,000,000 shall be transferred to a sub-account in the tourism special fund to provide funding for a safety and security budget, in accordance with the Hawaii tourism strategic plan 2005-2015; and
(C) Of the revenues remaining in the tourism special fund after revenues have been deposited as provided in this paragraph and except for any sum authorized by the legislature for expenditure from revenues subject to this paragraph, beginning July 1, 2007, funds shall be deposited into the tourism emergency special fund, established in section 201B-10, in a manner sufficient to maintain a fund balance of $5,000,000 in the tourism emergency special fund;
(4) $103,000,000 shall
be allocated as follows: Kauai county
shall receive 14.5 per cent, Hawaii county shall receive 18.6 per cent, city
and county of Honolulu shall receive 44.1 per cent, and Maui county shall
receive 22.8 per cent[; provided that commencing with fiscal year 2018-2019,
a sum that represents the difference between a county public employer's annual
required contribution for the separate trust fund established under section
87A-42 and the amount of the county public employer's contributions into that
trust fund shall be retained by the state director of finance and deposited to
the credit of the county public employer's annual required contribution into
that trust fund in each fiscal year, as provided in section 87A-42, if the
respective county fails to remit the total amount of the county's required
annual contributions, as required under section 87A-43]; and
(5) $3,000,000 shall be allocated to the special land and development fund established under section 171-19; provided that the allocation shall be expended in accordance with the Hawaii tourism authority strategic plan for:
(A) The protection, preservation, maintenance, and enhancement of natural resources, including beaches, important to the visitor industry;
(B) Planning, construction, and repair of facilities; and
(C) Operation and maintenance costs of public lands, including beaches, connected with enhancing the visitor experience.
All transient accommodations taxes shall be paid into the state treasury each month within ten days after collection and shall be kept by the state director of finance in special accounts for distribution as provided in this subsection.
[As used in this subsection, "fiscal
year" means the twelve-month period beginning on July 1 of a calendar year
and ending on June 30 of the following calendar year.]"
SECTION 6. Section 37B-3, Hawaii Revised Statutes, is repealed.
["[§37B-3] Prepayment of other post-employment benefit
liability. (a) To comply with article VII, section 6, of the
Constitution of the State of Hawaii, the legislature may prepay the State's
other post-employment benefit liability.
When choosing to do so, the legislature shall appropriate general funds
to be expended to pay more than the annual required contribution owed by the
State for a fiscal year in order to reduce future annual required contributions
to amortize the unfunded other post-employment liability of the State.
(b) For the purpose of this section, the
"annual required contribution owed by the State for a fiscal year"
means the annual required contribution owed by the State for the fiscal year as
determined by the board of trustees of the Hawaii employer-union health
benefits trust fund under section 87A-43.
(c) An appropriation of general funds to pay more
than the annual required contribution owed by the State for a fiscal year shall
be deposited into the trust fund for other post-employment benefits established
under section 87A-42.
(d) In no case shall an appropriation of general
funds made pursuant to this section be expended for or credited to any cost or
liability of a county under chapter 87A."]
SECTION 7. Section 87A-43, Hawaii Revised Statutes, is repealed.
["[§87A-43] Payment of public employer contributions to
the other post-employment benefits trust. (a) Commencing
with fiscal year 2018-2019, each of the counties and all other public employers
shall make annual required contributions in accordance with section 87A-42 for
the benefit of their retirees and beneficiaries.
(b) The board shall determine the annual required
contribution owed by each public employer under this part for each fiscal year,
beginning with fiscal year 2018-2019."]
SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 9. This Act shall take effect on July 1, 2021; provided that on June 30, 2023, this Act shall be repealed and sections 37B‑3, 87A-24, 87A-42, 87A-43, 237‑31, and 237D-6.5(b), Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day prior to the effective date of this Act.
Report Title:
Hawaii Employer-union Health Benefits Trust Fund; Annual Required Contribution; Other Post-employment Benefits
Description:
Suspends the requirement for public employers to make annual required contributions to the Hawaii employer-union health benefits trust fund through fiscal year 2022-2023. Repeals on 6/30/2023. (CD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.