STAND. COM. REP. NO. 2818

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2542
                                        H.D. 1
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Health and Human Services, to which was
referred H.B. No. 2542, H.D. 1, 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 measure is to make an emergency
appropriation for the State's Medicaid home and community based
services for the developmentally disabled or mentally retarded
program.  The measure also authorizes increases in the federal
matching funds.

     Your Committee received testimony in support of this measure
from the Department of Health (DOH), Department of Human Services
(DHS), State Planning Council on Developmental Disabilities,
Hawaii Disability Rights Center, and ARC in Hawaii.  

     The amount of the appropriation is $367,268, to the DOH for
the State's share of matching federal funds.  The additional
funds would support current clients, provide for the admission of
more people into the program, and address issues raised by a
federal lawsuit against the State.

     Your Committee has amended this measure on the
recommendation of the DOH and the DHS by:


 
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                                   STAND. COM. REP. NO. 2818
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     (1)  Substituting updated figures as follows:

          (A)  The sum of $10,836,549 as the State's match on a
               50-50 basis for federal funds.  This new figure is
               the same as the interdepartmental transfer of
               funds to the DHS for this purpose under paragraph
               (3) of section 3 of this measure; and

          (B)  The sum of $958,472 as additional State funds to
               meet a new federal matching formula of 51.01 per
               cent of federal funds effective October 1, 1999,
               and approximately 53.85 per cent effective
               October 1, 2000.  The additional funds are to
               enable the State to presently bill the federal
               government for reimbursement for moneys already
               spent for the maximum amount of reimbursement
               possible; and

     (2)  Making a technical, nonsubstantive amendment for
          preferred drafting style.

     As affirmed by the record of votes of the members of your
Committee on Health and Human Services that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 2542, H.D. 1, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B.
No. 2542, H.D. 1, S.D. 1, and be referred to the Committee on
Ways and Means.

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



                                   ______________________________
                                   SUZANNE CHUN OAKLAND, Chair

 
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