STAND. COM. REP. NO. 147

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 552
                                     H.D. 1




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

Sir:

     Your Committees on Human Services and Housing and Health, to
which was referred H.B. No. 552 entitled:

     "A BILL FOR AN ACT RELATING TO ADULT RESIDENTIAL CARE
     HOMES,"

begs leave to report as follows:

     The purpose of this bill is to require the Department of
Health to provide liability insurance coverage to operators of
adult residential care homes during the term of their licenses.

     Your Committees have amended this bill by deleting its
contents and inserting provisions to establish the adult
residential care home personal injury and property damage
compensation special fund to compensate the operators of adult
residential care homes and other persons for personal injuries
and property damage caused by residents who are placed in adult
residential care homes by the State; and to offer training and
education programs in handling violent residents.

     Specifically, this bill:

     (1)  Specifies that the special fund is to consist of moneys
          appropriated by the Legislature for the purposes of the
          special fund; and a monthly contribution of $5 per
          resident (defined as an individual who has been placed
          in an adult residential care home by the State)

 
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          deducted from state payments to adult residential care
          homes prior to the disbursement of these payments;

     (2)  Requires the monthly contribution to be suspended by
          the Director of Finance when the unencumbered balance
          in the special fund exceeds $100,000, and to be
          reinstated when the unencumbered balance in the special
          fund drops below $75,000;

     (3)  Requires disbursements from the special fund to be made
          by a five-member ad hoc panel consisting of the
          Director of Human Services or the director's
          representative, the Director of Health or the
          director's representative, one representative from a
          patient advocacy group or patient advocacy agency
          appointed jointly by the Director of Human Services and
          the Director of Health, one representative from an
          adult residential care home organization appointed by
          the Director of Human Services, and one representative
          from an adult residential care home organization
          appointed by the Director of Health;

     (4)  Requires the ad hoc panel to be chaired alternately by
          the Director of Health and Director of Human Services,
          or their representatives; and attaches the ad hoc panel
          to the Department of Health for administrative
          purposes;

     (5)  Requires the Department of Health to adopt rules to
          implement this bill, including procedures to receive
          and pay claims for compensation, convene meetings of
          the ad hoc panel, and appoint representatives of
          patient advocacy groups, patient advocacy agencies, and
          adult residential care home organizations; and

     (6)  Appropriates $50,000, to the Department of Health for
          fiscal year 1999-2000, to be paid into the adult
          residential care home personal injury and property
          damage compensation special fund.

     As affirmed by the record of votes of the members of your
Committees on Human Services and Housing and Health that are
attached to this report, your Committees are in accord with the
intent and purpose of H.B. No. 552, as amended herein, and
recommend that it pass Second Reading in the form attached hereto
as H.B. No. 552, H.D. 1, and be referred to the Committee on
Consumer Protection and Commerce.

 
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Respectfully submitted on         Respectfully submitted on
behalf of the members of the      behalf of the members of the
Committee on Health               Committee on Human Services
                                  and Housing



______________________________     ______________________________
ALEXANDER C. SANTIAGO, Chair       DENNIS A. ARAKAKI 

 
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