STAND. COM. REP. NO. 1511

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.R. No. 52
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Health, to which was referred H.R. No. 52
entitled: 

     "HOUSE RESOLUTION URGING THE U.S. CONGRESS TO ENACT
     LEGISLATION THAT AMENDS THE SOCIAL SECURITY ACT TO PROHIBIT
     THE FEDERAL GOVERNMENT FROM RECEIVING ANY SHARE OF THE FUNDS
     AWARDED IN THE TOBACCO SETTLEMENT THAT WAS REACHED IN 1998
     BETWEEN THE STATES AND THE TOBACCO INDUSTRY,"

begs leave to report as follows:

     The purpose of this resolution is to urge members of the
U.S. Congress to enact federal legislation that amends the Social
Security Act to prohibit the federal government from receiving
any share of the funds awarded in the Master Tobacco Settlement
Agreement that was reached between the states and the tobacco
industry.

     The Hawaii Medical Association and Women In Government
testified in support of the measure.  The Department of Human
Services testified in support of the intent of the measure.

     Your Committee finds that the Health Care Financing
Administration intends to recover the federal share of
Medicaid-related expenditures associated with moneys recovered in
the tobacco settlement because, under current law, tobacco
settlement recoveries must be treated like any other Medicaid
recoveries.


 
 
 
                                 STAND. COM. REP. NO. 1511
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     Your Committee further finds that the Social Security Act
must be amended to resolve the recoupment issue so that the
moneys from the settlement remain with the respective states.

     As affirmed by the record of votes of the members of your
Committee on Health that is attached to this report, your
Committee concurs with the intent and purpose of H.R. No. 52 and
recommends that it be referred to the Committee on Finance.

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



                                   ______________________________
                                   ALEXANDER C. SANTIAGO, Chair