STAND. COM. REP. NO. 843________

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1048
                                     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 Finance, to which was referred H.B. No.
1048, H.D. 1, 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 reduce the health insurance
contributions of public employers by requiring State and county
retired employees and their spouses to enroll in the federal
Medicare Part B medical insurance plan, if eligible.

     The Hawaii Public Employees Health Fund Board of Trustees
submitted testimony in support of this measure.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
1048, H.D. 1, and recommends that it pass Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair