HI HB407

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 2022 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 and retirees when the main trust fund has insufficient moneys.

Caps public employer prefunding contributions to the other post-employment benefits trust fund once separate accounts reach a combined balance of at least $2,000,000,000, with excess earnings transferred to the rate stabilization reserve fund thereafter.

Authorizes use of transient accommodations tax revenues to supplement deficient county public employer contributions to the trust fund if necessary.

Appropriates unspecified general revenues for fiscal year 2021-2022 to fund the state auditor's feasibility study; takes effect July 1, 2021, with the unfunded liability provisions effective July 1, 2022.