STAND. COM. REP. NO. 1743_______

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 528
                                     S.D. 2
                                     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 S.B. No.
528, S.D. 2, H.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this bill is to clarify jurisdiction over
health insurers by exempting from managed health benefits
requirements health insurance coverage offered by insurers,
mutual benefit societies, and health maintenance organizations
under federally funded programs under the Social Security Act.

     The Department of Human Services testified in support of the
intent of this measure.  The Department of Commerce and Consumer
Affairs commented on this measure.

     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 S.B. No.
528, S.D. 2, H.D. 1, and recommends that it pass Third Reading.

                                 STAND. COM. REP. NO. 1743_______
                                 Page 2

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,

                                   DWIGHT Y. TAKAMINE, Chair