HI HB393

Establishes fiduciary duties for members of the Hawaii Employer-Union Health Benefits Trust Fund board of trustees, requiring compliance with federal Employee Retirement Income Security Act (ERISA) standards under title 29 U.S. Code sections 1001-1191c.

Requires fiduciaries to discharge duties solely in the interest of employee-beneficiaries, with care and prudence comparable to a prudent person managing a similar enterprise, and to diversify plan investments to minimize risk of large losses.

Prohibits fiduciaries from engaging in transactions involving sales, leasing, lending, or provision of goods/services between the plan and parties with conflicting interests.

Prohibits fiduciaries from dealing with plan assets for personal benefit, representing parties with adverse interests to the plan, or receiving personal compensation from parties dealing with the plan.

Establishes liability for fiduciaries who knowingly participate in or conceal breaches by other fiduciaries, or fail to prevent breaches by co-trustees; takes effect January 1, 2050.