STAND. COM. REP. NO. 710

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1049
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Labor and Public Employment, to which was
referred H.B. No. 1049 entitled: 

     "A BILL FOR AN ACT RELATING TO THE PUBLIC EMPLOYEES HEALTH
     FUND,"

begs leave to report as follows:

     The purpose of this bill is to require employee
organizations who participate in the Hawaii Public Employees
Health Fund's (Health Fund) benefit plans to return to the Health
Fund the approximate employers' share of any rate credit or
reimbursement from any carrier or self-insurance plan including
any earnings or interest.

     The Health Fund submitted comments.

     The Hawaii State Teachers Association submitted testimony in
opposition to this measure, stating that the return of refunds to
their organization are used to expand or purchase additional
benefits for the membership.

     Your Committee has amended this measure by making technical,
nonsubstantive amendments for purposes of style and clarity.

     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. 1049, as amended herein, and recommends that it pass

 
 
 
                                 STAND. COM. REP. NO. 710
                                 Page 2

 
Second Reading in the form attached hereto as H.B. No. 1049, H.D.
1, and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Labor and Public
                                   Employment,



                                   ______________________________
                                   TERRY NUI YOSHINAGA, Chair