CONFERENCE COMMITTEE REP. NO. 44

Honolulu, Hawaii

                 , 2013

RE:    S.B. No. 933

       S.D. 1

       H.D. 1

       C.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Madam and Sir:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 933, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE TRICARE PROGRAM,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this measure is to make permanent the state general excise tax exclusion for the amounts received by a managed care support contractor of the TRICARE program for the actual cost or advancement to third-party health care providers, pursuant to a contract with the United States for the administration of the TRICARE program.

     Your Committee on Conference finds that the TRICARE program is a federal government program that provides health care services to over nine million Americans, composed of active duty, reserve, and retired members of the United States uniformed services, their family members, and survivors, including approximately one hundred fifty thousand current and former service members and their family members who reside in Hawaii.  The TRICARE program contracts with third-party administrators, known as "managed care support contractors," to establish and maintain networks of TRICARE-authorized civilian health care providers in various regions of the United States.  On behalf of the United States Department of Defense, managed care support contractors make advances to health care providers, including doctors, hospitals, and other providers, for costs of health care services provided to TRICARE beneficiaries.  The United States Department of Defense reimburses managed care support contractors for the actual cost or advancement made to third-party health care providers.

     Upon further consideration, your Committee on Conference has amended this measure by:

     (1)  Extending the state general excise tax exclusion for five years, rather than making the exclusion permanent; and

     (2)  Changing the effective date from July 1, 2050, to July 1, 2013.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 933, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 933, S.D. 1, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ K. MARK TAKAI, Co-Chair	____________________________ DAVID Y. IGE, Chair
____________________________ DELLA AU BELATTI, Co-Chair
____________________________ SYLVIA LUKE, Co-Chair