HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Section 432D-5, Hawaii Revised Statutes, is
 2 amended to read as follows:
 3      "[[]432D-5[]]  Annual and quarterly report.(a)  Every
 4 health maintenance organization shall annually, on or before
 5 March 1, file a report verified by at least two principal
 6 officers with the commissioner covering the preceding calendar
 7 year.  Each health maintenance organization shall file quarterly,
 8 on or before the forty-fifth day after each quarter, a copy of
 9 its quarterly report verified by at least two principal officers
10 with the commissioner.  Such report shall comply with sections
11 431:3-301 and 431:3-302.  The commissioner may prescribe on which
12 forms the reports are to be filed.  In addition, the health
13 maintenance organization annually shall file with the
14 commissioner the following by the dates specified:
15      (1)  An audit by a designated independent certified public
16           accountant or accounting firm of the financial
17           statements reporting the financial condition and
18           results of operations of the health maintenance
19           organization on or before June 1, or such later date as

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 1           the commissioner upon request or for cause may specify.
 2           The health maintenance organization, on an annual basis
 3           and prior to the commencement of the audit, shall
 4           notify the commissioner in writing of the name and
 5           address of the person or firm retained to conduct the
 6           annual audit.  The commissioner may disapprove the
 7           health maintenance organization's designation within
 8           fifteen days of receipt of the health maintenance
 9           organization's notice, and the health maintenance
10           organization shall be required to designate another
11           independent certified public accountant or accounting
12           firm.
13      (2)  A list of the providers who have executed a contract
14           that complies with section 432D-8(d) on or before March
15           1; and
16      (3)  A description of the grievance procedures, the total
17           number of grievances handled through those procedures,
18           a compilation of the causes underlying those
19           grievances, and a summary of the final disposition of
20           those grievances on or before March 1.
21      (b)  The commissioner may require additional reports as are
22 deemed necessary and appropriate to enable the commissioner to
23 carry out the commissioner's duties under this chapter.

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 1      (c)  The commissioner may suspend or revoke the certificate
 2 of authority of any health maintenance organization who fails to
 3 file any of the documents required under subsection (a).  In lieu
 4 or in addition to the suspension or revocation of the certificate
 5 of authority of any health maintenance organization, the
 6 commissioner may fine the health maintenance organization not
 7 less than $100 and not more than $500 for each day of
 8 delinquency."
 9      SECTION 2.  Section 432D-17, Hawaii Revised Statutes, is
10 amended to read as follows:
11      "[[]432D-17[]]  Fees.(a)  The commissioner shall collect
12 in advance the following fees:
13      (1)  For filing an application for a certificate of
14           authority or amendment thereto, $600; and
15      (2)  For all services subsequent to the issuance of a
16           certificate of authority (including extension of the
17           certificate of authority), $400.
18      (b)  The commissioner shall notify the holder of the
19 certificate of authority by written notice at least thirty days
20 prior to the extension date of the certificate.  If the fee is
21 not paid before or on the extension date, the fee shall be
22 increased by a penalty in the amount of fifty per cent of the
23 fee.  If the fee and the penalty are not paid within thirty days

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 1 immediately following the extension date, the commissioner may
 2 revoke the certificate of authority and shall not reinstate the
 3 certificate of authority until the fee and penalty have been
 4 paid.
 5      [(b)] (c)  All fees collected pursuant to this section and
 6 penalties collected pursuant to section 432D-14 shall be remitted
 7 by the commissioner to the director of finance and shall be
 8 placed to the credit of the general fund."
 9      SECTION 3.  Statutory material to be repealed is bracketed.
10 New statutory material is underscored.
11      SECTION 4.  This Act shall take effect upon its approval.
13                           INTRODUCED BY:  _______________________

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