STAND. COM. REP. NO. 404

Honolulu, Hawaii

RE:    S.B. No. 1457

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Health, to which was referred S.B. No. 1457 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 measure is to make an emergency appropriation for the Developmental Disabilities Division of the Department of Health (DOH).

     Your Committee received testimony in support of this measure from the DOH, State Council on Developmental Disabilities, and Family Voices of Hawai‘i.

     Your Committee finds that this measure would enable the DOH to meet state-approved target numbers under the current Medicaid home and community-based service waiver program, in order to reasonably admit individuals with developmental disabilities or mental retardation into the program.  This would enable the DOH to fulfill its developmental disabilities obligations under a settlement agreement reached pursuant to HDRC v. State, U.S. District Court, Civil No. 03-00524 HG-KSC (Makin II), requiring the State to comply with the U.S. Supreme Court's Olmstead decision.

     Your Committee further finds that a large portion of the current $4,980,523 shortfall resulted from a supplemental budget that the Developmental Disabilities Division received that was less than originally requested.  In addition, this fiscal year has seen a large increase in admission of individuals into the program. 

     Your Committee notes that with the funding in this measure, the DOH should be able to obtain additional federal matching funds at the 57.7 per cent match.

     Your Committee has amended this measure by:

     (1)  Deleting the specific amount appropriated; and

     (2)  Adding a provision that declares that the general fund expenditure ceiling has been exceeded.

     As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1457, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1457, S.D. 1, and be referred to the Committee on Ways and Means.

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

____________________________

DAVID Y. IGE, Chair