Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 104
                                     H.D. 1

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Labor and Public Employment, to which was
referred H.B. No. 104 entitled: 


begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Require the Employee-Union Trust Concept Committee
          (EUTCC) to appoint two co-chairs to represent:

          (a)  State and county public employers; and 

          (b)  Public employee organizations;

     (2)  Include one retired public employee representative in
          the EUTCC;

     (3)  Require the EUTCC to incorporate into its proposal a
          plan to incorporate retirees into the trust structure;

     (4)  Require three progress reports by the EUTCC;

     (5)  Require two annual action plans by the EUTCC;

     (6)  Require submittal of a final report by the EUTCC before
          the 2001 Regular Session; and

     (7)  Terminate the EUTCC on June 30, 2001. 

                                 STAND. COM. REP. NO. 242
                                 Page 2

     The Oahu Retired Teachers Association, the Retired Hawaii
State Teachers Association, the Hawaii Government Employees
Association, and the Hawaii State Teachers Association testified
in support of this measure.  The Department of Budget and Finance
supported the intent of this measure, but commented that the
incorporation of retirees should be further reviewed.  The Hawaii
Public Employees Health Fund commented on this measure.

     Your Committee finds that the EUTCC is an ideal mechanism to
provide quality healthcare coverage for employees and retirees
while controlling costs for such healthcare coverage.  Your
Committee further finds that this measure promotes the continued
efforts of the EUTCC to find alternatives to current ways of
providing health benefits to public employees.

     Your Committee has amended this measure by making technical,
nonsubstantive amendments for clarification purposes.

     As affirmed by the record of votes of the members of your
Committee on Labor and Public Employment that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 104, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as H.B. No. 104, H.D.
1, and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Labor and Public

                                   TERRY NUI YOSHINAGA, Chair