STAND. COM. REP. NO. 2706

Honolulu, Hawaii

RE:    S.B. No. 2845

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 2845, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO APPOINTMENT OF EXEMPT PERSONNEL IN THE DEPARTMENT OF HUMAN SERVICES FOR THE STATE MEDICAL ASSISTANCE PROGRAMS,"

begs leave to report as follows:

     The purpose and intent of this measure is to authorize the Director of Human Services to appoint and employ certain professional staff, not subject to chapter 76, Hawaii Revised Statutes, if the Director determines that the services to be performed are unique and essential to the execution of the functions of the state medical assistance programs.

     Your Committee received written comments in support of this measure from the Department of Human Services.  Written comments in opposition were received from the Hawaii Government Employees Association.

     Your Committee finds that certain high level managerial and professional staff positions within the state medical assistance programs require exceptional knowledge of complex federal health care regulations, detailed technical and specialized awareness and knowledge of health care trends and different health care delivery systems, the ability to negotiate and discuss program requirements with federal partners at the Centers for Medicare and Medicaid Services, and the ability to provide skilled oversight of program activities.  Your Committee also finds that state civil service system requirements make it difficult to recruit qualified individuals with the knowledge and experience required by these positions.  Your Committee believes that this measure will provide the Director of Human Services with the flexibility to recruit, hire, and compensate high level managerial and professional staff to manage critical functions of the state medical assistance programs.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2845, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair