STAND. COM. REP. NO. 1464-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 3176
                                     S.D. 2
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No.
3176, S.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this bill is to restore the right to benefits
of insurance coverage to reciprocal beneficiaries by:

     (1)  Requiring the Hawaii Public Employees Health Fund to
          establish reciprocal beneficiary family health benefits
          plan; and

     (2)  Extending to reciprocal beneficiaries the same
          insurance coverage offered to spouses.

     The Hawaii Civil Rights Commission, Hawaii State Commission
on the Status of Women, American Civil Liberties Union of Hawaii,
American Friends Service Committee, and several individuals
testified in support of this bill.  The Health Fund's Board of
Trustees, the Chamber of Commerce of Hawaii, and Hawaii Medical
Services Association offered comments on this bill.  GTE Hawaiian
Telephone Company Inc., Hawaii Business Health Council, and
Outrigger Hotels and Resorts testified in opposition to this
bill.

     Your Committee has amended this bill by:


 
 
                                 STAND. COM. REP. NO. 1464-00
                                 Page 2

 
     (1)  Adding an amendment to section 572C-4, Hawaii Revised
          Statutes, which requires each of the parties to be
          residents of the State of Hawaii to qualify as a valid
          reciprocal beneficiary relationship; and

     (2)  Making technical, nonsubstantive changes for clarity,
          consistency, and style.

     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 S.B. No.
3176, S.D. 2, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as S.B. No. 3176, S.D.
2, H.D. 1.

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair