Bill Text: HI SB2409 | 2014 | Regular Session | Introduced
Bill Title: Hawaii Employer-Union Health Benefits Trust Fund; Unfunded Liability; Non-General Fund Reimbursement
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-01-21 - Referred to JDL, WAM. [SB2409 Detail]
Download: Hawaii-2014-SB2409-Introduced.html
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THE SENATE |
S.B. NO. |
2409 |
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TWENTY-SEVENTH LEGISLATURE, 2014 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO employer-union health benefits.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this Act is to address annual required contributions by the State to the Hawaii employer-union health benefits trust fund.
Beginning with fiscal year 2016-17, this Act requires a state non-general fund to reimburse the state general fund for the portion of the annual required contributions made for health benefits of state employees and retirees whose compensation are or were paid from the non-general fund. This Act, however, includes an exception from the requirement when a reimbursement from a non-general fund for state retirees would be unreasonable, inappropriate, or illegal. The legislature intends, under this Act, that the state director of finance have reasonable flexibility to calculate the reimbursement amount owed by a non-general fund to the general fund.
This Act also includes a technical amendment expressly requiring a non-general fund to reimburse the State for health benefits contributions made for state retirees living outside the State.
SECTION 2. Section 87A-39, Hawaii Revised Statutes, is amended to read as follows:
"[[]§87A-39[]]
Reimbursement for state contributions. (a) All state agencies having
control of funds other than the general fund shall reimburse the State for
contributions made by the State pursuant to sections 87A-32, 87A-33, 87A-33.5,
87A-34, 87A-35, 87A-36, and 87A-37 on account of agency employees whose
compensation is or was paid in whole or part from those non-general
funds [other than the general fund].
(b) All state and county agencies receiving federal funds, which may be expended for the purpose of replacing the contributions payable by the State to the Hawaii employer-union health benefits trust fund, shall set aside a portion of the federal funds sufficient to reimburse the State for contributions made by the State pursuant to sections 87A-32, 87A-33, 87A-33.5, 87A-34, 87A-35, 87A-36, and 87A-37, on account of the employees in the agencies whose compensation is or was paid in whole or part from those federal funds.
(c) (1) Beginning with fiscal year 2016-17, all state agencies having control of funds other than the general fund shall reimburse the State for the portion of the annual required contribution made by the State pursuant to section 87A-42(b), (c), or both, on account of:
(A) Agency employees in active service whose compensation is paid in whole or part from those non-general funds; and
(B) Agency retirees whose compensation immediately before retirement from active service was paid in whole or part from those non-general funds.
(2) If the director of finance finds that it would be unreasonable, inappropriate, or illegal to require a reimbursement of the general fund from a particular non-general fund for the portion of the annual required contribution attributable to agency retirees, the director shall waive the reimbursement requirement for that portion. The director of finance may apply the waiver for a fiscal period of any length, but not indefinitely, and shall periodically review the waiver before expiration to determine if it continues to be necessary.
In no instance shall the director of finance waive the requirement that a non-general fund reimburse the general fund for the portion of the annual required contributions attributable to agency employees in active service whose compensation is paid in whole or part from that non-general fund.
(3) The director of finance shall calculate the amount that a state agency is required to reimburse the general fund from a non-general fund pursuant to this subsection. The director of finance shall use a reasonable calculation method determined by the director that may be applied efficiently and cost-effectively. The director of finance's calculation shall be final; except that a state agency may appeal the director's calculation to the governor, who may consider the appeal without regard to chapter 91 or 92. If choosing to consider the appeal, the sole question to be decided by the governor is whether the director of finance's calculation is reasonable. The governor's decision on the appeal shall be final.
(4) After calculation of the reimbursement amount owed by a non-general fund, the director of finance shall bill the state agency for the amount. The state agency shall disburse the reimbursement amount from the non-general fund to the director of finance within a deadline set by the director. Upon receipt of the reimbursement, the director of finance shall deposit the proceeds into the general fund.
(5) The reimbursement requirement from a non-general fund established under this subsection shall be additional to the reimbursement requirement from that non-general fund established under subsection (a)."
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.
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INTRODUCED BY: |
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Report Title:
Hawaii Employer-Union Health Benefits Trust Fund; Unfunded Liability; Non-General Fund Reimbursement
Description:
Requires, from FY 2016-2017, a state non-general fund to reimburse the state general fund for annual required contributions made from the general fund for state employees and retirees whose compensation is or was paid from the non-general fund. Requires a non-general fund to reimburse the State for contributions made for state retirees living outside the State.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
