STAND. COM. REP. NO.  309

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1258

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 1258 entitled:

"A BILL FOR AN ACT RELATING TO ACTIONS FOR FALSE CLAIMS TO THE STATE,"

begs leave to report as follows:

     The purpose of this bill is to ensure a ten percent increase in the State's share of recoveries in actions for false claims against the Medicaid program by bringing the State's false claims law into compliance with the federal requirement that state law provide a cause of action for persons who suffer retribution or discrimination from employers for reporting violations of the false claims law.

     The Department of the Attorney General and Department of Human Services testified in support of this measure.

     Your Committee finds that a State must share proceeds recovered from actions relating to Medicaid fraud, with the federal government in the same proportion as the federal government's share of the cost of the Medicaid program.  The federal Deficit Reduction Act of 2005 allows a State to receive a ten percent increase in its share of recoveries for false Medicaid claims, if the State's false claims law meets certain requirements.  One such federal requirement is that the state law provides a cause of action for individuals who suffer retribution from employers due to the individuals' reporting of violations of the false claims law.  This bill would bring Hawaii's false claims law into compliance with that federal requirement.

     As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1258 and recommends that it pass Second Reading and be referred to the Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

____________________________

ALEX M. SONSON, Chair