Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 366
                                        S.D. 1

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


     Your Committee on Ways and Means, to which was referred S.B.
No. 366 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. 775
                                   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.

     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

     Upon further consideration, your Committee has amended this
bill 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.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
366, as amended herein, and recommends that it pass Third Reading
in the form attached hereto as S.B. No. 366, S.D. 1.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,

                                 CAROL FUKUNAGA, Co-Chair

                                 ANDREW LEVIN, Co-Chair

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