STAND. COM. REP. NO. 322

                                   Honolulu, Hawaii
                                                     , 1999

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




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

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred S.B. No. 1102 entitled: 

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

begs leave to report as follows:

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

     Testimony in support of this measure was submitted by the
Department of Accounting and General Services.  The Public
Employees' Health Fund supported the measure; provided the State
appropriate $100,000 annually for the Public Employees' Health
Fund to conduct the audit.

     Your Committee believes that it is the responsibility of the
Public Employees' Health Fund to maintain accurate records of its
accounts.  Your Committee also believes that since the Public
Employees' Health Fund is the beneficiary of audit information,
it should pay for the cost of any auditing expenses,

     Your Committee has amended the measure by clarifying that
the costs of the audit shall be paid out of the Public Employees'
Health Fund's reserves.


 
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                                   STAND. COM. REP. NO. 322
                                   Page 2


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

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Commerce and
                                   Consumer Protection,



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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