Establishes the federal revenue maximization revolving fund to collect and disburse revenue for medicaid-eligible health services provided to public school children. (SD2)

A BILL FOR AN ACT

SECTION 1. The legislature finds that the department of education established a federal revenue maximization program to develop a process to recover reimbursement for all medicaid-eligible health services that the department provides to Hawaii's school-aged children.

The legislature also finds that moneys generated from the revenue maximization program are deposited into the general fund. However, the deposit of generated revenue into the general fund does not guarantee that the moneys are dedicated to the school-based federal revenue maximization program. The establishment of a revolving fund for the federal revenue maximization program is necessary to provide a clear nexus between the revenue generated from the school-based claiming program and the provision of those services.

The purpose of this Act is to create a revenue source for medicaid-eligible health services provided by the department of education by establishing a revolving fund for the collection and disbursement of generated revenue to support the administration and operations of the federal revenue maximization program.

SECTION 2. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§302A-   Federal revenue maximization program revolving fund; established. (a) There is established in the state treasury the federal revenue maximization program revolving fund to be administered by the department. Moneys from the revolving fund shall be expended by the department for medicaid-eligible services provided by the department.

(b) The federal revenue maximization program revolving fund shall consist of:

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2006.