STAND. COM. REP. NO. 842________

                                 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 Finance, to which was referred H.B. No.
104, H.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this bill is to facilitate the implementation
of an employer-union trust concept for determining and
administering public employee and retiree health benefits by
amending Act 309, Session Laws of Hawaii 1996, as follows:

     (1)  Changing the composition of the committee to develop
          and recommend a proposal to implement such a concept;

     (2)  Specifying that the proposal include a plan to
          incorporate retirees into the trust structure;

     (3)  Requiring the committee to submit three annual progress
          reports to the Legislature;

     (4)  Requiring the committee to submit annual action plans
          on the proposal to the Legislature; and

     (5)  Repealing the committee on June 30, 2001.

     The Hawaii Government Employees Association, the Hawaii
State Teachers Association (HSTA), and HSTA-Retired testified in
support of this measure.  The Department of Budget and Finance

                                 STAND. COM. REP. NO. 842________
                                 Page 2

and the Hawaii Public Employees Health Fund commented on this

     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.
104, 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