STAND. COM. REP. NO. 629

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1041
                                     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 H.B. No. 1041 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 authorize the Board of
Trustees of the Hawaii Public Employees Health Fund (Health Fund)
to:

     (1)  Use rate credits and reimbursements to improve plan
          benefits;

     (2)  Reimburse identifiable employee-beneficiaries; or

     (3)  Reduce employee-beneficiary's monthly contribution.

     The Board of Trustees of the Health Fund and the Hawaii
State Teachers Association testified in support of the bill.
United Public Workers supported the intent of the bill.

     Your Committee finds that crediting reimbursements and rate
credits to identifiable employee-beneficiaries promotes fairness
in the distribution of benefits.

     Your Committee has amended the bill to require the Health
Fund to reimburse employee-beneficiaries their proportionate
share of premiums reimbursed by an insurance carrier, including
any amounts contributed by the employer in lieu of a wage
increase.

 
                                 STAND. COM. REP. NO. 629
                                 Page 2

 

     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 H.B. No. 1041, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as H.B. No. 1041, H.D.
1, and be referred to the Committee on Finance.

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



                                   ______________________________
                                   TERRY NUI YOSHINAGA, Chair