STAND. COM. REP. NO. 2464

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2791
                                        




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

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 2791 entitled:

     "A BILL FOR AN ACT MAKING AN EMERGENCY APPROPRIATION TO PAY
     THE SHARE OF HEALTH INSURANCE CARRIER REFUND AND RATE CREDIT
     AMOUNTS DUE TO THE FEDERAL GOVERNMENT,"

begs leave to report as follows:

     The purpose of this bill is to pay the State's share of
health insurance carrier refund and rate credit amounts due to
the federal government.

     This bill is recommended by the Governor for immediate
passage in accordance with section 9 of article VII of the state
constitution.  Your Committee finds that Act 141, Session Laws of
Hawaii 1998, authorized the return to the state general fund of
$31,315,640, representing the State's share of health insurance
carrier refunds, rate credits, and any interest accrued thereon.
The federal government provides the State with funding for fringe
benefit costs which include health insurance premium costs.  As a
result, the federal government is entitled to a portion of that
refund and the United States Department of Health and Human
Services is requesting that the State make immediate payment of
that portion.  This bill appropriates $2,132,595 for fiscal year
1999-2000 for this purpose.

     Your Committee notes that no interest has accrued to date
and no interest will accrue until the federal government

 
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determines the amount due and notifies the State.  The Department
of Budget and Finance has provided the federal government with
information to support the State's calculation, but the federal
government has not yet responded.

     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.
2791 and recommends that it pass Second Reading and be placed on
the calendar for Third Reading.

                                 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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