STAND. COM. REP. NO.  1666-14

Honolulu, Hawaii

                , 2014

RE:   S.B. No. 2194

      S.D. 1

      H.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 2194, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HEALTH,"

begs leave to report as follows:

The purpose of this measure, as received by your Committee, is to provide for the early detection and treatment of congenital heart defects on newborns by:

(1)  Requiring birthing facilities to perform a pulse oximetry test for critical congenital heart defects or other medically accepted test, as approved by the American Academy of Pediatrics, on every newborn in each facility's care prior to discharge;

(2)  Requiring birthing facilities to report certain data and information relating to the screening tests performed to the Department of Health; and

(3)  Appropriating funds for screening programs, including in Hawaii Health Systems Corporation facilities.

     For the purposes of a public hearing on this bill, your Committee circulated Proposed S.B. No. 2194, S.D. 1, H.D. 2 (Proposed Draft) and notified the public that it would be accepting testimony on the proposal, which:

(1)  Requires birthing facilities to perform a pulse oximetry test or other medically accepted screening on newborns to screen for critical heart defects, and to report certain data from those screening tests to the Department;

(2)  Appropriates funds for the screening tests; and

(3)  Establishes the Hawaii Employer-Union Health Benefits Trust Fund Captive Insurance Company to manage the administration and financing of the current and potential future employee benefit obligations of the State and county governments.

     Your Committee received testimony from the following organizations and individuals on the Proposed Draft:

The Department of Health, Kapi‘olani Medical Center for Women & Children, American Heart Association, Hawaii Chapter of the March of Dimes Foundation, Hawaii Chapter of the American Academy of Pediatrics, and a concerned individual testified in support of Part I of this measure.  The Department of Budget and Finance and Kaiser Permanente Hawaii provided comments on Part I of this measure.

A Representative from the State House of Representatives representing House District 30 testified in support of Part II of this measure.  The Hawaii Employer-Union Health Benefits Trust Fund opposed Part II of this measure.  The Department of Commerce and Consumer Affairs, Department of Budget and Finance, and Tax Foundation of Hawaii provided comments on Part II of this measure.

     Your Committee considered the merits of both S.B. No. 2194, S.D. 1, H.D. 1, as received by your Committee, and the Proposed Draft, and upon careful consideration, adopted the Proposed Draft with the following amendments:

(1)  Changing its effective date to July 1, 2030, to facilitate further discussion; and

(2)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     Your Committee notes that concerns were raised regarding the necessity of completing a feasibility study before implementing part II of this measure.

     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 S.B. No. 2194, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2194, S.D. 1, H.D. 2.

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

____________________________

SYLVIA LUKE, Chair