Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Legislative Management, to which was referred H.C.R. No. 96 entitled:

begs leave to report as follows:

The purpose of this concurrent resolution is to continue the efforts of the Joint Senate-House Investigative Committee (Joint Committee) to investigate the State's compliance with the Felix Consent Decree.

The Department of Education supported the intent of this concurrent resolution.

The 2001 Legislature adopted Senate Concurrent Resolution No. 65, S.D. 1, H.D. 1, which established the Joint Committee and authorized it to continue its work until the end of the 2002 Regular Session. During the interim between the 2001 and 2002 Regular Sessions, the Joint Committee investigated the misidentification of Felix class members, questionable Felix-related expenditures, and potential conflicts of interest by individuals and entities involved with the Felix Consent Decree. In 2002, the Legislature adopted House Concurrent Resolution No. 7, H.D. 1, which extended the Joint Committee until June 30, 2003.

Your Committee finds that progress has been made with this investigation. A $1,000,000 settlement announced on February 5, 2003, marked the first development in an investigation of suspected fraud, abuse, and overcharging. Recently, investigators with the Department of the Attorney General obtained a "no contest" plea from a therapeutic aide charged with ten felony counts of medical assistance fraud.

This measure:

(2) Expands its authority to include:

As affirmed by the record of votes of the members of your Committee on Legislative Management that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 96 and recommends its adoption.