STAND. COM. REP. NO. 189________

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 762

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. 762 entitled: 


begs leave to report as follows:

     The purpose of this bill is to allow the same amount of
Medicare Part B medical insurance refunds on behalf of a retiree
and spouse who are enrolled in a supplemental Medicare plan of an
employee organization, as a retiree and spouse enrolled in the
Health Fund Medicare Supplemental Plan.
     The Hawaii Public Employees Health Fund and the Hawaii State
Teachers Association testified in support of the bill.  The
Department of Budget and Finance opposed the bill.

     Your Committee finds that this bill promotes fairness by
requiring the same payment of Medicare Part B reimbursements for
retirees and eligible spouses enrolled in either the Health Fund
Plan or Union Plan.  Your Committee respectfully requests,
however, that the Committee on Finance consider the cost impact
of this measure in its deliberations on this bill.

                                 STAND. COM. REP. NO. 189________
                                 Page 2


     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. 762 and recommends that it pass Second Reading 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