STAND. COM. REP. NO. 785

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1300
                                        S.D. 1




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

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 1300 entitled: 

     "A BILL FOR AN ACT MAKING AN EMERGENCY APPROPRIATION TO PAY
     THE SHARE OF HEALTH INSURANCE CARRIER REFUND AND RATE CREDIT
     AMOUNTS DUE TO THE FEDERAL GOVERNMENT,"

begs leave to report as follows:

     The purpose of this bill is to make an emergency
appropriation for $2,132,595 for fiscal year 1998-1999 to return
to the federal government its share of health insurance rate
credits and rebates received by the State.

     This bill is recommended by the Governor for immediate
passage.  Act 141, Session Laws of Hawaii 1998, required the
Public Employees Health Fund to return to the state general fund
the amount of $31,315,640, representing the State's share of
health insurance carrier refunds, rate credits, and accrued
interest.  The federal government provides the State with funding
for fringe benefit costs which include health insurance premium
costs.  As a result, the federal government is entitled to a
portion of that refund and the United States Department of Health
and Human Services is requesting that the State make immediate
payment of that portion.


 
a                                                     SB1300 SD1
 
 
 
 
                                   STAND. COM. REP. NO. 785
                                   Page 2


     Upon further consideration, your Committee has amended this
bill by deleting the appropriated dollar amount for the purpose
of promoting further discussion.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
1300, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as S.B. No. 1300, S.D. 1, and
be placed on the calendar for Third Reading.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
a                                                     SB1300 SD1