STAND. COM. REP. NO. 591-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2542
                                     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.
2542 entitled: 

     "A BILL FOR AN ACT MAKING AN EMERGENCY APPROPRIATION FOR THE
     STATE'S MEDICAID HOME AND COMMUNITY BASED SERVICES FOR THE
     DEVELOPMENTALLY DISABLED OR MENTALLY RETARDED PROGRAM,"

begs leave to report as follows:

     The purpose of this bill is to appropriate and authorize
additional funds for the state's Medicaid Home and Community
Based Care Services for the Developmentally Disabled or Mentally
Retarded program (Title XIX waiver program) which is jointly
financed by the state and federal government.  The additional
funding will allow:

     (1)  Continued service to existing and additional clients in
          the Title XIX waiver program; 

     (2)  Admission of additional people to the Title XIX waiver
          program to address the issues raised in Makin v. State
          of Hawaii, Civil No. 98-00997 DAE.

     Your Committee received a letter from the Governor dated
February 3, 2000:

     (1)  Requesting an emergency appropriation for $367,268 to
          accommodate up to 1,089 clients in the Title XIX waiver
          program for fiscal year 2000;
 

 
 
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     (2)  Stating that the total amount of clients was approved
          by the Federal Health Care Financing Administration,
          which is the federal funding agency; and

     (3)  Requesting immediate passage of this measure.

     Testimony in support of this measure was submitted by the
Department of Health, the State Planning Council On Developmental
Disabilities, and the Arc in Hawaii. 

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

     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.
2542, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 2542, 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