STAND. COM. REP. NO. 238

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1043
                                     




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. 1043 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:

     (1)  Exempt the Public Employees Health Fund Administrator
          (Administrator) from state civil service laws;

     (2)  Specify that the Administrator's salary be within the
          range established for departmental deputy directors;
          and

     (3)  Allow the Administrator to become a member of the State
          Employees' Retirement System and receive benefits from
          any State or Federal employee benefit program.

     The Board of Trustees of the Hawaii Public Employees Health
Fund commented on this measure.

     Your Committee finds that by changing the Administrator's
position to an exempt hire, the pool of candidates should widen.
Thus, this measure will allow the Board to hire an Administrator
with a potentially higher level of expertise and competency.


 
 
 
                                 STAND. COM. REP. NO. 238
                                 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. 1043 and recommends that it pass Second Reading 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