STAND. COM. REP. NO. 1325-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2872
                                     S.D. 1
                                     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 S.B. No.
2872, 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 make an emergency
appropriation to ensure that the Hawaii Health Systems
Corporation (Corporation) can repay the State for moneys advanced
to pay retroactive and current fiscal year collective bargaining
increase payments to state employees assigned to the Corporation.

     Specifically, this bill appropriates $14,500,000 for fiscal
year 1999-2000 to pay for the increased payments to state
employees assigned to the Corporation.

     The Chamber of Commerce of Hawaii, the Hawaii Government
Employees Association, and an individual testified in support of
the measure.  The Corporation submitted comments on the measure.

     Your Committee is concerned that despite this emergency
appropriation, the Corporation may face an additional shortfall
due to its liabilities to the Employees' Retirement System.

     Your Committee has amended this bill by:
     (1)  Making the appropriation of funds contingent on the
          Corporation transmitting its accounts receivables that

 
 
                                 STAND. COM. REP. NO. 1325-00
                                 Page 2

 
          have been outstanding for over 60 days to the
          Department of Accounting and General Services or its
          nominee for collection and repayment to the general
          fund; and

     (2)  Making technical, nonsubstantive amendments for clarity
          and style.

     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 S.B. No.
2872, S.D. 1, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 2872, S.D.
1, 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