Honolulu, Hawaii
                                                     , 1999

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

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Commerce and Consumer Protection, 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 amend the composition of the
Employer-Union Trust Concept 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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                                   STAND. COM. REP. NO. 985
                                   Page 2

     (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.

     The Director of Finance, Hawaii Government Employees
Association, Hawaii State Teachers Association (HSTA), and HSTA-
Retired testified in support of this measure.  The Hawaii Public
Employees Health Fund commented 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

     Your Committee has amended the measure to specify that the
equal membership representing public employers and employee
organizations be set at five each, that is, one representing the
state government and four representing the four county
governments, and five members representing employee
organizations, and to clarify the submittal of the final

     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 H.B. No. 104, H.D. 1, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 104, H.D. 1, S.D. 1, and be referred to the
Committee on Ways and Means.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Commerce and Consumer

                                 BRIAN KANNO, Co-Chair

                                 BRIAN T. TANIGUCHI, Co-Chair

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