STAND. COM. REP. NO. 323

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1288
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred S.B. No. 1288 entitled: 

     "A BILL FOR AN ACT RELATING TO THE PUBLIC EMPLOYEES HEALTH
     FUND,"

begs leave to report as follows:

     The purpose of this measure is to permit the board of
trustees of the public employees health fund ("Board") to
contract for more than one type of benefit plan for medical,
drug, vision, and dental benefits.

     Testimony in support of this measure was received from the
Department of Budget and Finance and Hawaii Health Systems
Corporation.

     Your Committee finds that current law authorizes the Board
to contract for only one statewide plan for each of its medical,
drug, dental, and vision benefit plans.  This measure will
provide the Board the flexibility to contract for more than one
benefit plan per benefit category thereby fostering more
competition to provide the state quality benefit plans with the
best value.

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 1288 and recommends that it pass Second
Reading and be referred to the Committee on Ways and Means.

 
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                                   STAND. COM. REP. NO. 323
                                   Page 2



                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Commerce and
                                   Consumer Protection,



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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