STAND. COM. REP. NO. 701

Honolulu, Hawaii

RE: S.B. No. 330

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 330 entitled:

"A BILL FOR AN ACT RELATING TO AN EARNED INCOME DISREGARD PROGRAM,"

begs leave to report as follows:

The purpose of this measure is to require the Department of Human Services to allow for an earned income disregard of one hundred thirty-eight percent of the federal poverty level for income earned by certain individuals when determining eligibility of those individuals for Medicaid.

This measure also requires the Department of Human Services to evaluate the earned income disregard program and to submit reports to the Legislature prior to the 2020, 2021, and 2022 Regular Sessions.

Your Committee received written comments in support of this measure from Aloha Independent Living Hawaii, Lanakila Pacific, Oahu County Committee on Legislative Priorities of the Democratic Party of Hawaii, and one individual.

Your Committee finds that many Medicaid beneficiaries do not seek or obtain employment because doing so will reduce their Medicaid benefits. This measure will allow those individuals to increase their income through part-time employment while retaining their current Medicaid benefits.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

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

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. 330, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 330, S.D. 1.

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

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DONOVAN M. DELA CRUZ, Chair