Relating To The Hawaii Employer-union Health Benefits Trust Fund Board Of Trustees.
The bill modifies critical sections of the Hawaii Revised Statutes, specifically Sections 87A-5, 87A-6, and 87A-11. By amending the statute related to board composition, the bill enables the selection of trustees to include three representatives for employee-beneficiaries, one of whom will focus on retirees, and includes trustees from the public employers’ category. This realignment of board composition is designed to enhance the operational effectiveness of the Board while addressing concerns about representation from various stakeholder groups involved in state employee health benefits.
SB2530 is an act aimed at amending the composition and governance structure of the Hawaii Employer-Union Health Benefits Trust Fund Board of Trustees. The bill proposes to reduce the number of trustees from ten to nine and outlines a detailed procedure for the appointment of board members. This legislative change aims to streamline the appointment process and ensure a balanced representation of both employee-beneficiaries and public employers on the board, fostering better decision-making regarding health benefits provided to state employees.
One notable aspect of SB2530 is the adjustment to the quorum requirements for board decisions and voting power. The bill specifies that five trustees will now constitute a quorum, changing the previous requirement, which could raise concerns among stakeholders regarding the efficiency and representativeness of board decisions. Additionally, the new vacancy procedures mentioned may lead to debates among various employee representative groups regarding the selection process and eligibility, particularly those representing retirees and employee-beneficiaries, which could impact the dynamics of board governance.