STAND. COM. REP. NO. 2718

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2872
                                        S.D. 1




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. 2872 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 enable the Hawaii health systems corporation 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 carry out the purposes set forth in Act 262,
Session Laws of Hawaii 1996.

     Your Committee finds that this emergency appropriation is
necessary to ensure that the corporation can repay the State the
moneys the State advanced to pay retroactive and current fiscal
year collective bargaining increase payments for state employees
working for the corporation.

     However, your Committee finds that the substantive language
of the appropriation section:  "to carry out the purposes set
forth in Act 262, Session Laws of Hawaii 1996" is overly broad.
Act 262 created the corporation.  As such, Act 262 embodies many

 
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                                   STAND. COM. REP. NO. 2718
                                   Page 2


more purposes than merely paying state employees retroactive or
current pay raises.

     To preclude misinterpretation, your Committee has amended
this bill to clarify the purpose of the appropriation by deleting
the language:  "to carry out the purposes set forth in Act 262,
Session Laws of Hawaii 1996" and replacing it with:  "to pay
retroactive and fiscal year collective bargaining increase
payments to state employees assigned to the Hawaii health systems
corporation."

     Your Committee has also added a new section 5 to include
boilerplate language to the effect that this appropriation will
cause the state general fund expenditure ceiling for fiscal year
1999-2000 to be exceeded.

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

                                 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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