CONFERENCE COMMITTEE REPORT NO.190

                            Honolulu, Hawaii
                                            , 1999

                            RE:   H.B. No. 104
                                  H.D. 1
                                  S.D. 2
                                  C.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Conference on the disagreeing vote of the
House of Representatives to the amendments proposed by the Senate
in H.B. No. 104, H.D. 1, S.D. 2, entitled:

    "A BILL FOR AN ACT RELATING TO THE PUBLIC EMPLOYEES HEALTH
    FUND,"

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this bill is to change the composition of the
Employer-Union Trust Concept Committee and to extend the scope of
its mandated purpose by:

     (1) Providing that the Governor shall select the retiree
         member from a list of nominees submitted by the Public
         Employees Health Fund; 

     (2) Clarifying that equal numbers of representatives from
         public employers and public employee organizations sit
         on the Committee and that a retired beneficiary of the

 
 
                            CONFERENCE COMMITTEE REPORT NO.190
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         Public Employees Health Fund be included among the
         employee members;

     (3) Extends the Committee's term until June 30, 2001; and

     (4) Requires the Committee to submit to the Legislature:

         (A)  Annual progress reports on November 21, 1999, May
              15, 2000, and November 21, 2000;

         (B)  Annual action plans on November 1, 1999, and
              November 1, 2000; and

         (C)  A finalized proposal and implementing legislation
              no later than 20 days prior to the convening of the
              2001 regular session.

     Your Committee on Conference has amended this bill by:

     (1) Deleting reference to "employer-union trust concept" and
         replacing with "alternative concepts";

     (2) Deleting reference to "a suggested trust structure" and
         replacing with "suggested alternative structures";

     (3) Deleting reference to "trust structure" with "new
         structure"; and

     (4) Allowing any committee member or group of members to
         finalize a proposal to replace the existing public
         employees health fund with a system based on alternative
         concepts.

     Your Committee on Conference is in accord with the intent
and purpose of H.B. No. 104, H.D. 1, S.D. 2, as amended herein,
and recommends that it pass Final Reading in the form attached
hereto as H.B. No. 104, H.D. 1, S.D. 2, C.D. 1.

                                   Respectfully submitted,

MANAGERS ON THE PART OF THE        MANAGERS ON THE PART OF THE
           SENATE                              HOUSE
                                   
                                   
                                   
______________________________     ______________________________
BRIAN KANNO, Co-Chair              TERRY NUI YOSHINAGA, Co-Chair

 
                            CONFERENCE COMMITTEE REPORT NO.190
                            Page 3



                                   
                                   
                                   
______________________________     ______________________________
BRIAN T. TANIGUCHI, Co-Chair       DWIGHT Y. TAKAMINE, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
CAROL FUKUNAGA, Co-Chair           IRIS IKEDA CATALANI, Member
                                   
                                   
                                   
______________________________     ______________________________
ANDREW LEVIN, Co-Chair             NATHAN SUZUKI, Member
                                   
                                   
                                   
______________________________     ______________________________
BOB NAKATA, Member                 COLLEEN MEYER, Member



______________________________
SAM SLOM, Member