STAND. COM. REP. NO. 708

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1126
                                     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. 1126 entitled: 

     "A BILL FOR AN ACT RELATING TO FLEXIBLE SPENDING ACCOUNTS,"

begs leave to report as follows:

     The purpose of this bill is to provide Flexible Spending
Accounts (FSAs) for state employees while creating a trust for
employee contributions, interest earned, and forfeited
participant balances to be used exclusively for the benefit of
the participants of the plan and protected from the general
creditors of the State.

     The Department of Human Resources Development and the
Judiciary of the State of Hawaii submitted testimony in support
of this measure.

     Your Committee has amended this measure by making technical,
nonsubstantive amendments for purposes of style and clarity.

     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. 1126, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as H.B. No. 1126, H.D.
1, and be referred to the Committee on Finance.


 
 
 
 
                                 STAND. COM. REP. NO. 708
                                 Page 2

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



                                   ______________________________
                                   TERRY NUI YOSHINAGA, Chair