STAND. COM. REP. NO. 2895

Honolulu, Hawaii

RE: S.B. No. 3120

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 3120, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE OFFICE OF HEALTHCARE ASSURANCE SPECIAL FUND,"

begs leave to report as follows:

The purpose and intent of this measure is to repeal the annual spending limitation imposed upon the office of healthcare assurance special fund and the ceiling on moneys that may be retained in the fund.

Your Committee received written comments in support of this measure from the Department of Health.

Your Committee received written comments on this measure from the Tax Foundation of Hawaii.

Your Committee finds that moneys from the healthcare assurance special fund are to be used for operating costs and educational program expenses of the Office of Health Care Assurance, the improvement of public health outreach efforts, program and community development, industry consultations, and other matters. Your Committee also finds that the high costs of the Office's various activities and responsibilities, which often exceed the spending limitation and ceiling currently imposed on the fund, make the spending limitation and ceiling unrealistic, and often require the Office's efforts to be financed through general fund appropriations. Accordingly, your Committee finds merit in repealing the spending limitation and ceiling.

Your Committee has amended this measure by making technical nonsubstantive changes 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. 3120, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3120, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair