STAND. COM. REP. NO. 531-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2517
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No.
2517 entitled: 

     "A BILL FOR AN ACT MAKING AN EMERGENCY APPROPRIATION FOR THE
     STATE MEDICAL ASSISTANCE PROGRAM,"

begs leave to report as follows:

     The purpose of this bill is to appropriate moneys to prevent
the reduction or discontinuance of direct medical services for
medicaid recipients.  

     Your Committee received a letter from the Governor dated
February 4, 2000:

     (1)  Stating that the Medicaid program will expend all
          appropriated funds before the end of the current fiscal
          year and the Department of Human Services (DHS) will
          not be able to meet its fiscal obligation to provide
          health care services to Medicaid recipients;

     (2)  Requesting supplementary emergency appropriations of
          $4,075,000 general funds and authorization to increase
          federal expenditure appropriations by $4,243,025 in
          fiscal year 2000 for the Medicaid program; and

     (3)  Requesting immediate passage of this measure.


 
 
 
 
                                 STAND. COM. REP. NO. 531-00
                                 Page 2

 
     Testimony in support of this bill was submitted by DHS, the
Hawaii Long Term Care Association, and the Healthcare Association
of Hawaii. 

     Your Committee has amended this bill by making technical,
nonsubstantive amendments for clarity and consistency.

     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 H.B. No.
2517, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 2517, H.D. 1, and
be placed on the calendar for Third Reading.

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair