Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 3175, S.D. 2, H.D. 2, entitled:

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to allow the State's existing agreement with the federal government, pursuant to section 88-212, Hawaii Revised Statutes, to be modified to provide Medicare-only coverage to employees of the Center for Cultural and Technical Interchange Between East and West, Inc. (Center). This measure also requires the Center to reimburse all appropriate agencies for costs incurred as a result of the provision of benefits under Title XVIII of the Social Security Act to its employees.

Your Committee on Conference finds that in 1981 a referendum was held allowing employees of the Center to choose whether or not to be covered by the Social Security Act, with such decision being irrevocable. Subsequently, in 1986, the Social Security Administration, in recognition of a lack of hospital insurance coverage nationwide, modified the Social Security Act to require the provision of Medicare coverage for employees hired on or after April 1, 1986, who are not covered by Social Security. However, no mechanism currently exists for the provision of Medicare coverage for those employees hired prior to April 1, 1986.

Your Committee on Conference determines employees of the Center should be afforded the opportunity to secure coverage under the Medicare system and has amended this measure by making its provisions effective on July 1, 2004, rather than on July 1, 2010.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 3175, S.D. 2, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 3175, S.D. 2, H.D. 2, C.D. 1.