STAND. COM. REP. NO. 1184_______

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1102
                                     S.D. 1
                                     H.D. 1




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

Sir:

     Your Committee on Labor and Public Employment, to which was
referred S.B. No. 1102, S.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to transfer the financial
responsibility of annually auditing the Public Employees' Health
Fund (Health Fund) from the Comptroller to the Health Fund.

     The Department of Accounting and General Services testified
in support of this bill.

     As the annual audit benefits only the Health Fund, your
Committee finds that it is appropriate that audit costs be borne
by the Health Fund.

     Your Committee has amended this bill to make technical,
nonsubstantive changes for clarity and consistency.

     As affirmed by the record of votes of the members of your
Committee on Labor and Public Employment that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 1102, S.D. 1, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B. No.
1102, S.D. 1, H.D. 1, and be referred to the Committee on
Finance.

 
 
                                 STAND. COM. REP. NO. 1184_______
                                 Page 2

 
                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Labor and Public
                                   Employment,



                                   ______________________________
                                   TERRY NUI YOSHINAGA, Chair