Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Labor, to which was referred S.B. No. 1046 entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the board of trustees of the Hawaii Public Employees Health Fund to select and contract its financial and insurance carrier claim audits. The measure also eliminates the requirement that the audit costs be paid from an employer's portion of the trust fund's reserves.

Your Committee received comments on this measure from the Hawaii Public Employees Health Fund.

Your Committee finds that general funds rather than trust funds are a more appropriate revenue source to cover ongoing operating expenses such as an annual financial audit.

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1046 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.