THE SENATE

S.B. NO.

2809

TWENTY-SIXTH LEGISLATURE, 2012

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

MAKING AN EMERGENCY APPROPRIATION TO THE DEPARTMENT OF HUMAN SERVICES.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  This Act is recommended by the governor for immediate passage in accordance with section 9 of article VII of the Hawaii State Constitution.

     SECTION 2.  A critical fiscal emergency exists.  On May 19, 2010, United States District Judge J. Michael Seabright ordered the State of Hawaii to pay to the law firms of Alston Hunt Floyd and Ing and Lawyers for Equal Justice the amount of $70,124.05 as attorneys' fees awarded for being the prevailing party in the lawsuit Sound v. Koller, Civil No. 09-00409 JMS KSC.

     Although a request was made for payment of this amount from general funds during the regular session of 2011, the legislature did not appropriate the funds to satisfy this indebtedness.  As a result, the two law firms sought to garnish this amount from a State of Hawaii bank account.  To avoid garnishment, the department of human services, on advice of its counsel, the department of the attorney general, agreed to pay to the law firms of Alston Hunt Floyd and Ing and Lawyers for Equal Justice $39,243.15, consisting of general funds from the Medicaid program budget for HMS 902, General Support for Health Care Payments, in partial payment for the amount owing.  Again on the advice of its counsel, the department of the attorney general, the department of human services also agreed to ask the 2012 legislature for an expedited appropriation of $30,880.90 as the remaining amount due to the two law firms.  In exchange for the partial payment and the agreement to request this expedited appropriation, the law firms halted their garnishment action against the State of Hawaii.

     The purpose of this Act is to appropriate $70,124.05 in general funds for an emergency appropriation for fiscal year 2011-2012 to satisfy the State's remaining indebtedness of $30,880.90 to the law firms of Alston Hunt Floyd and Ing and Lawyers for Equal Justice, and to reimburse the $39,243.15 previously expended from the department of human services' HMS 902, General Support for Health Care Payments budget for payment to those law firms, and to ensure that there will be no funding shortfall in the Medicaid program as a result of the earlier partial payment that would disrupt timely payments to contracted health plans in providing medically necessary services to program recipients.

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $70,124.05, or so much thereof as may be necessary, for fiscal year 2011-2012 to be used for General Support for Health Care Payments (HMS 902).

     SECTION 4.  The sum appropriated shall be expended by the department of human services for the purposes of this Act.

     SECTION 5.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

BY REQUEST


 


 

Report Title:

General Support for Health Care Payments (HMS 902; Emergency Appropriation

 

Description:

Makes an emergency appropriation from general revenues of the State of Hawaii for fiscal year 2011-2012 to address the budget shortfall for General Support for Health Care Payments (HMS 902) in the Department of Human Services.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.