H.B. 1462 Summary

• State Auditor must study the feasibility of converting Hawaii's employer-union health benefits trust fund from fully insured to a self-insured model, examining potential cost savings, risks, and impacts on employee benefits.

• Establishes a Rate Stabilization Reserve Fund within the employer-union health benefits trust fund to cover increasing costs of health and benefit plans when the trust fund has insufficient moneys.

• Caps public employer prefunding contributions to the Other Post-Employment Benefits Trust Fund once combined subaccount balances reach $2,000,000,000, with investment income thereafter transferred to the Rate Stabilization Reserve Fund.

• Directs use of transient accommodations tax revenues to supplement deficient county public employer contribution amounts to the Other Post-Employment Benefits Trust Fund.

• State Auditor shall report findings and recommendations, including proposed legislation, to the legislature no later than twenty days prior to the 2020 regular session; Act takes effect January 1, 2050.