Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 102
                                        S.D. 2

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Ways and Means, to which was referred S.B.
No. 102, S.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this bill is to improve the provision of
adequate health care services and related public transportation
services for rural communities.

     The intent of this bill is to qualify Hawaii for federal
Medicare rural hospital flexibility grants through the
development of a statewide rural health plan and to create a
rural health special fund.  Your Committee finds that adequate
health care for rural districts throughout the State is sorely
lacking.  This bill is an outgrowth of the Department of Health's
rural health plan for the island of Hawaii, particularly Puna and
Ka`u, to ensure the improvement of health facilities and to make
available sufficient medical services.  Although examples on the
Big Island are cited in the bill, your Committee emphasizes that
this measure applies to all counties where there is a rural
health problem.

     Your Committee has amended this bill by adding language to
clarify that the rural health special fund is created in the
state treasury to be administered and expended by the Department
of Health.  Your Committee has also added a new section 4 to the

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                                   STAND. COM. REP. NO. 617
                                   Page 2

bill to add boilerplate language to ensure that federal funds are
not jeopardized.  In addition to renumbering the remaining
sections of the bill, your Committee has also made technical,
nonsubstantive amendments to the bill for purposes of clarity and

     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.
102, S.D. 1, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as S.B. No. 102, S.D. 2.

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

                                 CAROL FUKUNAGA, Co-Chair

                                 ANDREW LEVIN, Co-Chair

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