Bill Text: HI HB393 | 2019 | Regular Session | Amended
Bill Title: Relating To The Hawaii Employer-union Health Benefits Trust Fund.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2019-04-26 - Conference Committee Meeting will reconvene on Friday, 04-26-19 at 2:00PM in Conference Room 423. [HB393 Detail]
Download: Hawaii-2019-HB393-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
393 |
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THIRTIETH LEGISLATURE, 2019 |
H.D. 1 |
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STATE OF HAWAII |
S.D. 2 |
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A BILL FOR AN ACT
RELATING TO THE HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUND.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 87A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§87A- Fiduciary
duties; prohibited transactions.
(a) A fiduciary of the trust fund
shall comply, with respect to a plan, with all fiduciary duties imposed on
fiduciaries under title 29 United States Code sections 1001-1191c, as amended,
and related regulations.
(b) All fiduciaries of the trust fund shall
discharge their duties with respect to a plan solely in the interest of the employee-beneficiaries
and:
(1) For the
exclusive purpose of:
(A) Providing
benefits to employee-beneficiaries; and
(B) Defraying
reasonable expenses of administering the plan;
(2) With the care,
skill, prudence, and diligence under the circumstances that a prudent person
acting in a similar capacity and familiar with those matters would use in the
conduct of an enterprise of a similar character and with like aims;
(3) Diversify the
investments of the plan so as to minimize the risk of large losses, unless,
under the circumstances, it is clearly prudent not to do so; and
(4) Act in
accordance with the documents and instruments governing the plan insofar as
such documents and instruments are consistent with the provisions of this chapter.
(c) In addition to any liability that a fiduciary
may have under this chapter, a fiduciary with respect to a plan shall be liable
for a breach of fiduciary responsibility of another fiduciary with respect to
the same plan in the following circumstances:
(1) If the
fiduciary participates knowingly in, or knowingly undertakes to conceal, an act
or omission of the other fiduciary, knowing that act or omission is a breach;
(2) If, by the
fiduciary's failure to comply with subsection (a) or (b), the fiduciary has
enabled the other fiduciary to commit a breach; or
(3) If the
fiduciary has knowledge of the breach by the other fiduciary, unless the other
fiduciary makes reasonable efforts under the circumstances to remedy the
breach.
If the assets of the plan are managed
by two or more trustees, each shall use reasonable care to prevent a co-trustee
from committing a breach, and each shall be responsible for jointly managing
and controlling the assets of the plan.
(d) A fiduciary shall not cause a plan to engage
in a transaction, if the fiduciary knows or should know that the transaction
constitutes a direct or indirect:
(1) Sale or
exchange, or leasing, of any property between the plan and a party in interest;
(2) Lending of
money or other extension of credit between the plan and a party in interest;
(3) Furnishing of
goods, services, or facilities between the plan and a party in interest; or
(4) Transfer to, or
use by or for the benefit of, a party in interest, of any assets of the plan.
(e) A fiduciary shall not:
(1) Deal with the
assets of the plan in the fiduciary's own interest or for the fiduciary's own personal
account;
(2) In the
fiduciary's individual capacity or in any other capacity act in any transaction
involving the plan on behalf of a party, or represent a party, whose interests
are adverse to the interests of the plan or the interests of its employee-beneficiaries;
or
(3) Receive any
consideration for the fiduciary's own personal account from any party dealing
with the plan in connection with a transaction involving the assets of the
plan.
For the
purposes of this section, a "fiduciary" or "fiduciary of the
trust fund" shall mean a member of the board of trustees."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act shall take effect on January 1, 2050.
Report Title:
Employer-union Health Benefits Trust Fund; Fiduciary Duties; Prohibited Transactions; Liabilities; Trustees
Description:
Creates a fiduciary duty on Employer-Union Health Benefits Trust Fund trustees. Prohibits transactions where the trustee has a conflict of interest. Establishes liabilities for breach of fiduciary duty. Takes effect 1/1/2050. (SD2)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
