Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 3270, S.D. 2, entitled:

begs leave to report as follows:

The purpose of this bill is to protect the health and welfare of Hawaii's people by:

The Hawaii Primary Care Association, Waianae Coast Comprehensive Health Center, Ho'ola Lahui Hawaii, Hamakua Health Center, Inc., Waikiki Health Center, Kalihi-Palama Health Center, Molokai Ohana Health Care, Inc., Ko'olauloa Community Health and Wellness Center, Bay Clinic, Inc., National Association of Social Workers, and several concerned individuals testified in support of this bill. DOH and the Department of Human Services supported the intent of this measure. The Department of the Attorney General submitted comments.

Your Committee believes that federally qualified health centers and rural health clinics serve crucial functions in providing health care to our community populations. However, your Committee wishes to raise the concern that the payment mechanisms referred to in this measure are currently funded by federal matching funds, and there may be a time when such funds are no longer available. Under the provisions set forth in this measure, the State may then be required to continue a certain level of payments, despite the loss of federal matching funds.

Your Committee has amended this measure by:

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. 3270, S.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3270, S.D. 2, H.D. 1.