STAND. COM. REP. NO. 1395

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 172
                                     S.D. 1
                                     H.D. 1




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

Sir:

     Your Committees on Human Services and Housing and Health, to
which was referred S.B. No. 172, S.D. 1, entitled: 

     "A BILL FOR AN ACT MAKING AN APPROPRIATION FOR THE
     CHILDREN'S HEALTH INSURANCE PROGRAM,"

beg leave to report as follows:

     The purpose of this bill is to expand health coverage to
uninsured children by appropriating funds from the General Fund
for the Children's Health Insurance Program (CHIP).

     The Waianae Coast Comprehensive Health Center, the
Healthcare Association of Hawaii, the Hawaii State Primary Care
Association, and the Hawaii Nurses' Association testified in
support of this measure.  The Departments of Human Services and
Health testified in support of the intent of this measure.

     Your Committees recognize that state participation in CHIP
is an important opportunity for Hawaii to capture federal
matching funds to provide health coverage for uninsured children
from low-income families.

     Providing the State's match for CHIP is of such a high
priority to your Committees that this measure has been amended
by:

     (1)  Providing the State match through the proposed Tobacco
          Agreement Special Fund (Special Fund); and

 
 
                                 STAND. COM. REP. NO. 1395
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     (2)  Using general funds for the State match if the Special
          Fund cannot be used.

     Your Committees have also made technical, nonsubstantive
amendments for purposes of clarity and style.

     As affirmed by the records of votes of the members of your
Committees on Human Services and Housing and Health that are
attached to this report, your Committees are in accord with the
intent and purpose of S.B. No. 172, S.D. 1, as amended herein,
and recommend that it pass Second Reading in the form attached
hereto as S.B. No. 172, S.D. 1, H.D. 1, and be referred to the
Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Human Services
                                   and Housing and Health,

                                   
                                   
                                   
                                   
______________________________     ______________________________
ALEXANDER C. SANTIAGO, Chair       DENNIS ARAKAKI, Chair