HB 1462 Summary

• Requires the State Auditor to study the feasibility of converting Hawaii's employer-union health benefits trust fund from a fully insured model to a self-insured or partially self-insured model, with findings due 20 days before the 2020 legislative session.

• Establishes a Rate Stabilization Reserve Fund within the employer-union health benefits trust fund to cover increasing costs of health and other benefit plans for active employees, retirees, and beneficiaries.

• Caps public employer prefunding contributions to the Other Post-Employment Benefits Trust Fund once separate accounts reach a combined balance of $2,000,000,000, with excess earnings thereafter transferred to the Rate Stabilization Reserve Fund.

• Directs use of transient accommodations tax (TAT) revenues to supplement any deficient county public employer contributions to the Other Post-Employment Benefits Trust Fund.

• Takes effect January 1, 2050.