STAND. COM. REP. NO.  231

 

Honolulu, Hawaii

                , 2015

 

RE:   H.B. No. 1283

      H.D. 1

 

 

 

 

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

 

Sir:

 

     Your Committee on Health, to which was referred H.B. No. 1283 entitled:

 

"A BILL FOR AN ACT RELATING TO THE HAWAII HEALTH CONNECTOR,"

 

begs leave to report as follows:

 

     The purpose of this measure is to support the functions and financial sustainability of the Hawaii Health Connector (Connector) by, among other things:

 

     (1)  Specifying that the Connector will be self-sustaining by January 1, 2023, rather than January 1, 2015;

    

     (2)  Expanding the purposes of and revenue streams available to the Connector to include enrollment, implementation, and benefit administration services for employers and their employees for non-qualified health plans; and

 

     (3)  Authorizing the Connector to issue debentures in amounts collectively not to exceed $28,000,000, to be payable solely from operating revenues received by the Connector.

 

     The Department of the Attorney General, Department of Commerce and Consumer Affairs, Connector, Hawaii Primary Care Association, Hawaii Medical Service Association, and The Chamber of Commerce Hawaii provided comments on this measure.

 

     Your Committee has amended this measure by:

 

     (1)  Specifying that the Connector be self-sustaining by January 1, 2015, to better comply with federal Patient Protection and Affordable Care Act of 2010 (ACA) mandates;

 

     (2)  Ensuring that the issuance of debentures by the Connector complies with State fiscal constitutional and statutory mandates by:

 

          (A)  Amending the measure's purpose section to specify that the issuance of debentures in the name of the Connector serves a public purpose;

 

          (B)  Specifying that the State shall approve all debentures before they are issued; and

 

          (C)  Establishing and appropriating unspecified funds to the Connector Debenture Guarantee Trust Fund to ensure that reasonable reserves are established within the state treasury prior to the issuance of the debentures;

 

     (3)  Specifying that all plans for the Connector to generate revenues be in compliance with both federal and state laws, rules, and regulations;

 

     (4)  Changing its effective date to July 1, 2050, to encourage further discussion; and

 

     (5)  Making technical, nonsubstantive amendments for the purpose of style, clarity, and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1283, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1283, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.

 

Respectfully submitted on behalf of the members of the Committee on Health,

 

 

 

 

____________________________

DELLA AU BELATTI, Chair