Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 3175, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to give employees of the East-West Center who currently are not contributing to medicare the option of participating in the medicare system.

Your Committee finds that in 1981 a referendum was held allowing employees of the East-West Center to choose whether to be covered by the Social Security Act, with that decision being irrevocable. Your Committee further finds that 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 exists for the provision of medicare coverage for those employees hired prior to April 1, 1986.

Therefore, your Committee has determined that these employees should be afforded the opportunity to secure coverage under the medicare system. Additionally, your Committee has determined that no other groups or employees are affected by this measure and the East-West Center has indicated that it is willing to fund costs incurred with regard to affected East-West Center employees.

Your Committee has substituted the official legal name of the East-West Center in section 4 of the bill and made other technical nonsubstantive changes for purposes of clarity and consistency.

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. 3175, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3175, S.D. 2.