STAND. COM. REP. NO.  1157

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1371

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1371, H.D. 1, entitled:

"A BILL FOR AN ACT MAKING AN EMERGENCY APPROPRIATION FOR THE DEVELOPMENTAL DISABILITIES DIVISION OF THE DEPARTMENT OF HEALTH,"

begs leave to report as follows:

     The purpose of this bill is to appropriate emergency funding necessary to cover increasing expenses relating to the ongoing operation, services, and activities of the Developmental Disabilities Division of the Department of Health (DOH).

     Pursuant to the requirements set forth in Article VII, Section 9, of the Hawaii State Constitution, the Governor, in her Governor's Message No. 235 to the Legislature, requested immediate consideration and passage of this bill by the Legislature citing an existing critical funding shortage.

     This bill appropriates $4,980,523 out of general revenues and $4,111,237 from the Developmental Disabilities Interdepartmental Transfer Fund (Transfer Fund) for fiscal year 2006-2007 to be used to:

     (1)  Sustain the ongoing operation and services of the Developmental Disabilities Division of the DOH;

     (2)  Provide individuals with developmental disabilities or mental retardation, home- and community-based services;

     (3)  Increase admission into Medicaid State Plan Intermediate Care Facilities for the Mentally Retarded in the Community Program; and

(4)  Ensure DOH's ability to receive federal Medicaid reimbursements.

The appropriated amounts are to be expended by DOH.

     DOH, the State Council on Developmental Disabilities, and Hawaii Waiver Providers Association supported this bill.

     Your Committee has amended this bill by:

     (1)  Changing the fiscal year for the appropriation from the Transfer Fund to 2006-2007 to accurately reflect the emergency appropriation; and

     (2)  Making technical, nonsubstantive changes for clarity, consistency, and style.

     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 H.B. No. 1371, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1371, H.D. 2.

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

____________________________

MARCUS R. OSHIRO, Chair