STAND. COM. REP. NO. 991

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1060
                                     H.D. 2




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.
1060, H.D. 2, 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 change the employer
contributions to the Hawaii Public Employees Health Fund by:

     (1)  Eliminating state and county employer contributions for
          health benefits for beneficiaries of employees hired
          after June 30, 2000; and

     (2)  Limiting employer contributions to a single plan at a
          percentage based on the employee's years of service.

     The Department of Budget and Finance, the Hawaii Public
Employees Health Fund, the Hawaii Government Employees
Association, AFSCME LOcal 152, AFL-CIO, the United Public
Workers, AFSCME, Local 646, AFL-CIO, the State of Hawaii
Organization of Police Officers, the Honolulu Police Department,
and the Hawaii State Teachers Association commented on 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.
1060, H.D. 2, and recommends that it pass Third Reading.

 
 
                                 STAND. COM. REP. NO. 991
                                 Page 2

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair