STAND. COM. REP. NO. 769

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1031
                                        S.D. 2




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 1031, S.D. 1, entitled:

     "A BILL FOR AN ACT MAKING AN EMERGENCY APPROPRIATION FOR THE
     HAWAII HEALTH SYSTEMS CORPORATION,"

begs leave to report as follows:

     The purpose of this bill is to appropriate $8,000,000 in
emergency general funds for fiscal year 1998-1999 to the Hawaii
Health Systems Corporation.

     Specifically, these funds are to be used by the Hawaii
Health Systems Corporation to meet year 2000 compliance for
systems and equipment, and to reduce the workers' compensation
costs which resulted from the years before the transfer of
community  hospitals from the State to the health systems
corporation.

     Your Committee finds that compliance with year 2000
requirements is critical in every area of government service from
public safety, health systems, transportation, and the like.
Without year 2000 compliance, many parts of these systems that
rely on computers could degenerate and adversely affect peoples'
lives.  Any type of health care that is affected by computers
could have detrimental effects on patients' lives if the computer
being used is not year 2000 compliant.  The Hawaii Health Systems
Corporation needs the State's financial help in order to become

 
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                                   STAND. COM. REP. NO. 769
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year 2000 compliant and to pay for workers' compensation costs.
This is an emergency appropriation because the Hawaii Health
Systems Corporation would not otherwise be able to continue to
provide services in the current fiscal year.

     Your Committee has amended this bill by deleting the
specific dollar amount appropriated.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
1031, S.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as S.B. No. 1031,
S.D. 2.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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