STAND. COM. REP. NO. 1523

Honolulu, Hawaii

RE: H.B. No. 1099

H.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1099, H.D. 1, entitled:

"A BILL FOR AN ACT MAKING AN EMERGENCY APPROPRIATION TO THE DEPARTMENT OF HUMAN SERVICES,"

begs leave to report as follows:

The purpose and intent of this measure is to decrease payment error rates in the Supplemental Nutrition Assistance Program.

Specifically, this measure makes an emergency appropriation to the Department of Human Services to support the ongoing development of a new eligibility system that will reduce payment error rates.

Your Committee received written comments in support of this measure from the Department of Human Services, Hawaii Food Industry Association, Hawaii Farmers Union, Hawaii Primary Care Association, Purple Maia Foundation, Catholic Charities Hawai`i, and Hawai`i Children's Action Network Speaks!.

Your Committee finds that the State recently incurred a financial penalty from the United States Department of Agriculture Food and Nutrition Service due to a payment error rate in the Supplemental Nutrition Assistance Program that exceeded the national average for two consecutive federal fiscal years. In lieu of paying the total penalty, the Food and Nutrition Service provided the State the option to invest fifty percent of the penalty amount into program improvements that would reduce the payment error rate. Your Committee further finds that the appropriation made by this measure would fulfill the State's obligation to make the required investment.

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 H.B. No. 1099, H.D. 1, and recommends that it pass Third Reading.

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

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DONOVAN M. DELA CRUZ, Chair