STAND. COM. REP. NO. 627

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 202
                                     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. 202 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 require employee-
beneficiaries who retire after June 30, 2000, and their spouses,
if eligible, to enroll in the federal Medicare plan for voluntary
medical insurance coverage.

     The bill also makes employee- and dependent-beneficiaries
ineligible to participate in any benefit plan or receive any
contribution offered by the Public Employees Health Fund for
failure to enroll in the federal plan.

     The Department of Budget and Finance submitted testimony in
support of the intent of the measure.  The Hawaii State Teachers
Association submitted testimony in opposition to the measure.

     Your Committee has amended this bill by making a technical,
nonsubstantive amendment for purposes of clarity and style.

     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. 202, as amended herein, and recommends that it pass

 
 
 
                                 STAND. COM. REP. NO. 627
                                 Page 2

 
Second Reading in the form attached hereto as H.B. No. 202, 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