STAND. COM. REP. NO. 588

                                   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 Ways and Means, 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 from the State Comptroller to the Public Employees' Health
Fund.

     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 from its
reserves.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
1102, S.D. 1, and recommends that it pass Third Reading.


 
a                                                     SB1102 SD1
 
 
 
 
 
                                   STAND. COM. REP. NO. 588
                                   Page 2


                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
a                                                     SB1102 SD1