HB2837.DOC

SECTION 1. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"CHAPTER

MEDICAID MATCHING PROGRAM

§ -1 Findings and declaration of necessity. It is the intent of the legislature to maximize the amount of federal matching funds available for medicaid programs.

§ -2 Definitions. As used in this chapter:

"Department" means the department of human services.

"Fiscal year" means a twelve-month period from July 1 of a particular calendar year to June 30 of the following calendar year, inclusive.

§ -3 Medicaid matching program special fund. (a) There is created in the state treasury the medicaid matching program special fund into which shall be deposited all moneys collected under this chapter.

(b) Moneys in the medicaid matching program special fund shall consist of general excise taxes collected by the department of taxation from health care services and classified as provider fees each fiscal year, pursuant to section 237-31(a)(4).

(c) No less than ninety-five per cent of the medicaid matching program special fund shall be used exclusively to match any federal medicaid funds available to the State.

(d) An amount not to exceed five per cent of the medicaid matching program special fund shall be used to pay the administrative expenses of the State.

§ -4 Federal approval. The department shall seek any approvals from federal authorities, such as the Centers for Medicare and Medicaid Services, that may be necessary to implement this program.

§ -5 Administrative matters. The director of human services shall adopt rules pursuant to chapter 91 necessary for the purposes of this section.

§ -6 Severability. If any provision of this chapter or the application thereof to any person or circumstances is held invalid, the invalidity shall not affect other provisions or applications of the chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable."

SECTION 2. Section 237-31, Hawaii Revised Statutes, is amended to read as follows:

"§237-31 Remittances. (a) All remittances of taxes imposed by this chapter shall be made by money, bank draft, check, cashier's check, money order, or certificate of deposit to the office of the department of taxation to which the return was transmitted. The department shall issue its receipts therefor to the taxpayer and shall pay the moneys into the state treasury as a state realization, to be kept and accounted for as provided by law; provided that:

(1) The sum from all general excise tax revenues realized by the State that represents the difference between $45,000,000 and the proceeds from the sale of any general obligation bonds authorized for that fiscal year for the purposes of the state educational facilities improvement special fund shall be deposited in the state treasury in each fiscal year to the credit of the state educational facilities improvement special fund;

(2) A sum, not to exceed $5,000,000, from all general excise tax revenues realized by the State shall be deposited in the state treasury in each fiscal year to the credit of the compound interest bond reserve fund; [~~and~~]

(3) A sum from all general excise tax revenues realized by the State that is equal to one-half of the total amount of funds appropriated or transferred out of the hurricane reserve trust fund under sections 4 and 5 of Act 62, Session Laws of Hawaii 2011, shall be deposited into the hurricane reserve trust fund in fiscal year 2013-2014 and in fiscal year 2014-2015; provided that the deposit required in each fiscal year shall be made by October 1 of that fiscal year[.]; and

(4) A percentage, as designated in subsection (b), from all the taxes under this chapter collected from health care services each fiscal year, with the exception of the county surcharge on state tax authorized by section 46-16.8, shall be classified as provider fees, transferred to the department of human services, and subsequently deposited into the medicaid matching program special fund described in chapter .

(b) The amount of excise taxes from health care services classified as provider fees shall be:

(1) 10 per cent in fiscal year 2012-2013;

(2) 20 per cent in fiscal year 2013-2014;

(3) 30 per cent in fiscal year 2014-2015;

(4) 40 per cent in fiscal year 2015-2016;

(5) 50 per cent in fiscal year 2016-2017;

(6) 60 per cent in fiscal year 2017-2018;

(7) 70 per cent in fiscal year 2018-2019;

(8) 80 per cent in fiscal year 2019-2020;

(9) 90 per cent in fiscal year 2020-2021;

(10) 100 per cent in fiscal year 2021-2022 and in every

subsequent fiscal year.

(c) For purposes of subsection (a)(4), "health care services" means the following medical services: preventive care, emergency care, inpatient and outpatient hospital and physician care, home nursing care, nursing and care home services, diagnostic laboratory services, diagnostic and therapeutic radiological services, counseling, and services purchased from dentists, chiropractors, optometrists, psychologists, and physical therapists.

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2012.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2837
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII