STAND. COM. REP. NO. 1056

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1041
                                     H.D. 2




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

Sir:

     Your Committee on Finance, to which was referred H.B. No.
1041, H.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 authorize the Board of
Trustees of the Hawaii Public Employees Health Fund (Fund) to use
rate credits and reimbursements to:

     (1)  Improve plan benefits;

     (2)  Reimburse identifiable employee-beneficiaries; and

     (3)  Reduce employee-beneficiaries' monthly contributions.

     The Hawaii State Teachers Association and the United Public
Workers testified in support of this measure.  The Board of
Trustees of the Fund commented on this measure.

     Your Committee has amended this measure by making technical,
nonsubstantive amendments for clarity.

 
 
 
 
 
 
 
 
                                 STAND. COM. REP. NO. 1056
                                 Page 2

 
     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
1041, H.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as H.B. No. 1041, H.D.
2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair