Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Health, to which was referred S.B. No. 1519 entitled:

begs leave to report as follows:

The purpose of this measure is to establish a community health centers special fund to provide a dedicated funding source for community health centers and to deposit a percentage of liquor and tobacco taxes into the special fund.

Your Committee received testimony supporting this measure from The Queen's Health Systems, Hana Community Health Center, Waianae Coast Comprehensive Health Center, AlohaCare, Hawaii Primary Care Association, ILWU, Local 142, and one individual. Comments on this measure were received from the Tax Foundation of Hawaii. Opposing testimony was received from the Department of Budget and Finance.

Your Committee finds that community health centers provide needed, high quality primary care services to Hawaii's rural communities. These centers operate only in designated underserved areas and must meet the medical, dental, mental health, preventive, and other service needs of individuals regardless of their ability to pay for those services. Unfortunately, every year Hawaii's community health centers must struggle to find the resources necessary to continue providing services. Thus, every year, residents of these underserved areas are in jeopardy of losing access to health services. Your Committee believes that some method of dedicated and stable funding is necessary to ensure that Hawaii's community health centers continue to provide the medical and health care residents truly need.

Your Committee reviewed the special fund framework proposed by this measure and decided to proceed with a different approach. Therefore, your Committee has amended this measure by replacing its contents with provisions that:

The actual percentages have not been specified so that they may be determined by your Committee on Ways and Means.

As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1519, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1519, S.D. 1, and be referred to the Committee on Ways and Means.