STAND. COM. REP. NO. 2805

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 540
                                        H.D. 2
                                        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. 540, H.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO HUMAN SERVICES,"

begs leave to report as follows:

     The purpose of this measure is to provide state-funded
medical assistance to legal immigrants.

     Your Committee received testimony from the Department of
Human Services (DHS), Healthcare Association of Hawaii, Hawaii
State Primary Care Association, Hawaii Catholic Conference, Na
Loio, and Kalihi-Palama Health Center.

     This measure also:

     (1)  Changes from ten per cent to an unspecified percentage
          the amount of tobacco settlement moneys to be
          transferred from the Department of Health to the DHS
          for the Children's Health Insurance Program (CHIP);

     (2)  Makes an unspecified appropriation to provide state-
          funded medical assistance to legal immigrants; and

     (3)  Makes an unspecified appropriation to fund CHIP up to
          three hundred per cent of the federal poverty level for
          Hawaii.


 
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     The intent of increasing the ten per cent transfer of moneys
from the DOH for use by CHIP is to fund the medical assistance to
legal immigrants.

     The federal enactment of the Personal Responsibility and
Work Opportunities Act of 1996 deprived medical assistance using
federal moneys to legal immigrants who were otherwise income
qualified for other public assistance.  Many legal scholars,
courts, and attorney generals have pronounced the federal law to
be unconstitutionally discriminatory.

     The intent of this measure is to correct the injustice of
the federal law by applying CHIP to cover medical assistance to
legal immigrants.  For this purpose, the ten per cent allocation
to CHIP from the tobacco settlement moneys will have to be
increased.

     The effect of this measure is to increase the numbers of
uninsured children covered by CHIP and to provide health
insurance to all permanent legal immigrants in Hawaii.

     Your Committee has amended this measure by:

     (1)  Requiring the DHS to provide state-funded medical
          assistance;

     (2)  Changing from August 22, 1999 to August 22, 1996, the
          date which legal permanent residents become eligible;

     (3)  Extending eligibility to persons from member countries
          of the Compact of Free Association;

     (4)  Deleting eligibility for people residing in the United
          States with the knowledge or permission of the
          Immigration and Naturalization Service; and

     (5)  Making technical, nonsubstantive changes to reflect
          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. 540, H.D. 2, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B.
No. 540, H.D. 2, S.D. 1, and be referred to the Committee on Ways
and Means.


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



                                   ______________________________
                                   SUZANNE CHUN OAKLAND, Chair

 
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