STAND

STAND. COM. REP. NO. 1607

Honolulu, Hawaii

, 2005

RE: S.B. No. 1394

S.D. 2

H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 1394, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO EDUCATION,"

begs leave to report as follows:

The purpose of this bill, as received, is to support the needs of military children and families by:

(1) Requiring the Department of Education (DOE) to consult with the Joint Venture Education Forum to establish a priority listing of public schools that are affected by a large population of military dependent students;

(2) Directing the University of Hawaii (UH) to establish a readmission program for military personnel returning from deployment; and

(3) Appropriating funds to DOE for additional staff, child care services, and vocational training and retraining in schools with a significant population of military dependent students.

For the purpose of receiving testimony and facilitating public discussion, your Committee circulated a proposed House draft 2. The proposed draft helps the State to maximize use of federal funds by requiring DOE, in collaboration with the Department of Human Services (DHS) and Department of Health (DOH), to establish and implement a federal revenue maximization program for all Medicaid-eligible health services that DOE provides to Hawaii's school-aged children.

The Department of Budget and Finance, DHS, and DOH testified in support of the proposed draft. DOE supported the intent of the proposed draft.

Your Committee has amended this bill by deleting and replacing its contents with the proposed House draft 2. As amended, this bill, among other things:

(1) Requires DOE, in collaboration with DHS and DOH, to establish a federal revenue maximization program to:

(a) Identify Medicaid-eligible health services provided through DOE to students, directly or through contracted providers; and

(b) Submit claims for federal reimbursement for such services through DHS;

(2) Requires DOH, in collaboration with DHS and DOE, to identify sources of funding, including Medicaid-eligible health services and reimbursable health services, to establish and provide school-based or school-linked health services at schools in federally designated underserved areas;

(3) Requires DOE to:

(a) Procure and contract for the development, implementation, and maintenance of the federal revenue maximization program;

(b) Claim the maximum reimbursement allowable under Medicaid for both administrative costs and school health services arising on and after January 1, 2006; and

(4) Requires DOE to submit regular periodic reports to the Legislature;

(5) Takes effect on July 1, 2020; and

(6) Includes technical, nonsubstantive amendments for clarity, consistency, and style.

Your Committee notes that DOE suggested that it be authorized, rather than required, to:

(1) Procure and contract for the development, implementation, and maintenance of the federal revenue maximization program;

(2) Claim the maximum reimbursement allowable under Medicaid for both administrative costs and school health services arising on and after January 1, 2006; and

(3) File retroactive claims for the preceding eight quarters.

DOE also raised concerns regarding the need for an appropriation to allow DOE to retain and expend federal Medicaid revenues that may be claimed and received within the next fiscal year.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1394, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1394, S.D. 2, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

		____________________________ DWIGHT TAKAMINE, Chair