Bill Text: HI SB1226 | 2023 | Regular Session | Introduced
Bill Title: Relating To The Hawaii Employer-union Health Benefits Trust Fund.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2023-01-31 - Re-Referred to LBT, WAM. [SB1226 Detail]
Download: Hawaii-2023-SB1226-Introduced.html
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THE SENATE |
S.B. NO. |
1226 |
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THIRTY-SECOND LEGISLATURE, 2023 |
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STATE OF HAWAII |
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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 legislature finds that the employees' retirement system created the Hawaii targeted investment program to fulfill the mandate of Act 260, Session Laws of Hawaii 2007 (Act 260), and has committed $117,000,000 to this program. The legislature further finds that the Hawaii employer-union health benefits trust fund board of trustees may, pursuant to section 87A-24(2), Hawaii Revised Statutes, "[i]nvest moneys in the same manner specified in section 88-119", relating to investments for the employees' retirement system.
The legislature encourages the Hawaii employer-union health benefits trust fund to establish a program similar to the Hawaii targeted investment program or seek opportunities to invest in Hawaii businesses. The Hawaii employer-union health benefits trust fund board of trustees can hold, purchase, sell, assign, transfer, or dispose of any securities or other investments of the fund, in addition to the proceeds of those investments and any moneys belonging to the fund. The Hawaii employer-union health benefits trust fund investment policy statement includes as its foremost investment objectives the accumulation and preservation of assets from ongoing employer and participant contributions in order to meet all benefit and expense obligations when due. To meet these objectives, the investment committee has segmented the Hawaii employer-union health benefits trust fund portfolio into two components, a liquid short-term operating asset pool and a long-term investment portfolio. The long-term investment portfolio, or OPEB trust, has an actuarially assumed rate of return of 7.0 per cent. The reserves are further divided to allow for the investment of excess funds and do not possess an assumed rate of return, as liquidity is the primary objective with a positive real return as a secondary objective.
The legislature further finds that the Hawaii employer-union health benefits trust fund produced investment returns that have outperformed standard benchmarks in the long run. This performance has been instrumental in helping to reduce the Hawaii employer-union health benefits trust fund's large $8,961,657,000 unfunded actuarial accrued liability as of June 30, 2022.
The legislature seeks opportunities that provide for Hawaii's economic growth, benefit its residents, protect the environment, and minimize financial burdens on current and future generations.
The purpose of this Act is to encourage the Hawaii employer-union health benefits trust fund to develop a program that considers investment opportunities in industries that will sustain Hawaii's natural environment or produce economic opportunities for its residents, including renewable energy businesses and businesses that use investment capital to acquire the infrastructure and services needed to become energy sustainable, and to support these investment opportunities through an appropriation to the trust fund.
SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2023-2024 for the Hawaii employer-union health benefits trust fund to develop a program that considers investment opportunities in industries that will sustain Hawaii's natural environment or produce economic opportunities for its residents, including renewable energy businesses and businesses that use investment capital to acquire the infrastructure and services needed to become energy sustainable; provided that until the Hawaii employer-union health benefits trust fund performs its due diligence in accordance with its investment policy statement and commits and distributes these funds to the investment opportunity, the Hawaii employer-union health benefits trust fund shall treat this appropriation as an advance payment credit of state contributions.
The sum appropriated shall be expended by the Hawaii employer-union health benefits trust fund for the purposes of this Act.
SECTION 3. This Act shall take effect on July 1, 2023.
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INTRODUCED BY: |
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Report Title:
EUTF; Investments; Appropriation
Description:
Encourages the EUTF to consider investment opportunities in industries that will sustain Hawaii's natural environment or produce economic opportunities for its residents, including renewable energy businesses and businesses that use investment capital to acquire the infrastructure and services needed to become energy sustainable. Appropriates funds to the EUTF.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
