STAND. COM. REP. NO. 321

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 366
                                        




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. 366 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 amend the composition of
the Employer-Union Trust Concept Committee (Committee) and to
extend the scope of its mandated purpose.

     Specifically, the measure clarifies that equal numbers of
representatives from public employers and public employee
organizations sit on the Committee and that a retired beneficiary
of the Public Employees' Health Fund also be a member.  The
measure also:

     (1)  Extends the Committee's term until June 30, 2001;

     (2)  Requires the Committee to submit annual progress
          reports on November 21, 1999, May 15, 2000, and
          November 21, 2000, to the Legislature;

     (3)  Requires the Committee to submit annual action plans to
          the Legislature on November 1, 1999, and November 1,
          2000; and


 
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     (4)  Requires the Committee to submit a finalized proposal
          and implementing legislation no later than twenty days
          prior to the convening of the 2001 regular session.

     Testimony in support of this measure was submitted by the
Hawaii Government Employees Association and the Hawaii State
Teachers Association.  The Department of Budget and Finance
supported the intent of the measure with reservations.  The
Public Employees' Health Fund submitted comments on the measure.

     Your Committee finds that more time is needed in order to
formulate a comprehensive plan to reform the public sector health
benefits program paradigm as we know it.  However, your Committee
is committed to ensuring that such a reform occurs in a
reasonable amount of time so as to benefit current public sector
employees.

     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. 366 and recommends that it pass Second
Reading and be referred to the Committee on Ways and Means.

                                   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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