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Tuesday, August 8, 2000



Hawaii State Seal

Lawmakers may
delay state medical
privacy law

The measure passes committee;
Senate terms are also
on the agenda

State tax revenues
increase 22.6 percent


By Crystal Kua and Suzanne Tswei
Star-Bulletin

State lawmakers say their efforts to clear up confusion over a medical information privacy law is not an attempt to kill the measure.

The state Senate and House judiciary committees held separate hearings yesterday on a bill designed to delay implementation of the 1999 medical privacy law to next year from this year.

The committees also heard testimony on a proposed constitutional amendment intended to fix a problem in setting staggered Senate terms in office.

The two measures are the main focus of this summer's 11-day joint special session that began yesterday. And, as expected, both bills passed out of committee without any changes.

The proposed amendment to the state Constitution is designed to correct what critics say is an unfair advantage Senate incumbents will have in the 2002 election. If incumbents win, they will get four year terms, but winning challengers will get only two-year terms.

The bill heard yesterday mandates the state Reapportionment Commission -- the panel that will redraw legislative district lines next year -- to determine which Senate districts will get a four- or two-year term.

The proposed constitutional amendment needs to be ratified by voters.

While some questioned the wording of the ballot question and Republicans voiced skepticism about whether the fix would really fix anything, the measure sailed through both committees.

Meanwhile, some advocates of the medical privacy law voiced suspicion that the motive behind postponing the implementation of the law was to repeal the law altogether.

The law, which went into effect July 1, is aimed at controlling release of medical information and penalizing those who violate the law with stiff fines or jail time.

Avery Chumbley, Senate Judiciary Committee co-chairman, and Eric Hamakawa, House Judiciary chairman, both said lawmakers' goal is not to see the bill repealed. They just want more time to resolve confusion or problems associated with the law.

Lt. Mazie Hirono, who is acting governor while Gov. Benjamin Cayetano is on vacation, told the Senate committee yesterday that Cayetano now supports extending the effective date of the medical privacy law until next year.

Cayetano had said that any flaws in the law can be fixed in next year's legislative session.


State tax revenues
increase 22.6 percent


Associated Press

State tax revenues in July jumped 22.6 percent from July of last year, but much of the increase in the first month of the new fiscal year was from what is known as the "weekend effect," the Department of Taxation reported today.

The state collected $240 million in July, up $44.3 million from July of 1999.

Of the increase, $33.3 million came from general excise and use taxes, but the department said two-thirds -- or $22 million -- was the result of lower-than-usual deposits in July of last year because it ended on a weekend.

Still, that means a real growth of 7.5 percent in the tax category that best reflects business activity in the state.

Individual income tax revenues in July increased 9.8 percent. The tax department said that indicates increased worker earnings from an improving economy.

Another reflection of the improving economy and tourism is a 45 percent jump in hotel room tax revenues, although they too are affected by the "weekend effect."

Room tax revenues go into the state's tourism special fund and to the counties.



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