Report Title:

Adult Residential Care Homes; Community Care Foster Family Homes

Description:

Creates the Liability Insurance Premium and Claims Payment Special Fund for the Department of Health and the Foster Family Home Liability Insurance Premium and Claims Payment Special Fund for the Department of Human Services to pay premiums for liability insurance for care home operators who cannot afford insurance.

THE SENATE

S.B. NO.

1032

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to care homes.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The purpose of this Act is to assist adult residential care home operators, including expanded adult residential care home and community care foster family home operators, with the high costs of insurance related to caring for clients.

PART I

SECTION 2. Chapter 321, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§321-   Adult residential care homes; liability insurance premium and claims payment special fund. (a) There is established within the department of health the liability insurance premium and claims payment special fund into which shall be deposited legislative appropriations and gifts from any source.

(b) Moneys in the fund shall be expended by the department for the purpose of supporting the operators of adult residential care homes in meeting their insurance liability needs as follows:

(1) To pay the liability insurance premiums of an adult residential care home operator who proves to the satisfaction of the director of health that the operation of the adult residential care home is under imminent threat of suspension or termination due to the operator's inability to pay for adequate liability insurance for the operation of the adult residential care home; and

(2) To pay claims for reimbursement for damage caused by a resident of an adult residential care home who is a medicaid client of the State, when claimed by an adult residential care home operator who does not have adequate liability insurance coverage.

(c) Not more than $      of the fund may be used during any fiscal year for fund administration, including the hiring of personnel and the purchase of equipment and supplies.

(d) Any amount in excess of $        on June 30th of each year shall be deposited into the general fund.

(e) The department may conduct unannounced annual inspections of adult residential care homes or expanded adult residential care homes.

(f) The department shall submit a report to the legislature, no fewer than twenty days prior to the convening of each regular session, that includes:

(1) The status of the liability insurance premium and claims payment special fund;

(2) The amount of moneys taken in by and expended from the fund; and

(3) The sources of receipts and uses of expenditures.

(g) The director shall adopt rules in accordance with chapter 91 to carry out the purposes of this section, including criteria for payment of premiums and claims."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $        or so much thereof as may be necessary for fiscal year 2005-2006 and the same sum or so much thereof as may be necessary for fiscal year 2006-2007 to be deposited into the liability insurance premium and claims payment special fund.

The sums appropriated shall be expended by the department of health for the purposes of this part.

PART II

SECTION 4. Chapter 346, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§346-   Community care foster family homes; foster family home liability insurance premium and claims payment special fund. (a) There is established within the department of human services the foster family home liability insurance premium and claims payment special fund into which shall be deposited legislative appropriations and gifts from any source.

(b) Moneys in the fund shall be expended by the department for the purpose of supporting the operators of community care foster family homes in meeting their insurance liability needs as follows:

(1) To pay the liability insurance premiums of a community care foster family home operator who proves to the satisfaction of the director of human services that the operation of the community care foster family home is under imminent threat of suspension or termination due to the operator's inability to pay for adequate liability insurance for the operation of the community care foster family home; and

(2) To pay claims for reimbursement for damage caused by a resident of a community care foster family home who is a medicaid client of the State, when claimed by a community care foster family home operator who does not have adequate liability insurance coverage.

(c) Not more than $      of the fund may be used during any fiscal year for fund administration, including the hiring of personnel and the purchase of equipment and supplies.

(d) Any amount in excess of $        on June 30th of each year shall be deposited into the general fund.

(e) The department may conduct unannounced annual inspections of community care foster family homes.

(f) The department shall submit a report to the legislature, no fewer than twenty days prior to the convening of each regular session, that includes:

(1) The status of the foster family home liability insurance premium and claims payment special fund;

(2) The amount of moneys taken in by and expended from the fund; and

(3) The sources of receipts and uses of expenditures.

(g) The director shall adopt rules in accordance with chapter 91 to carry out the purposes of this section, including criteria for payment of premiums and claims."

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $        or so much thereof as may be necessary for fiscal year 2005-2006 and the same sum or so much thereof as may be necessary for fiscal year 2006-2007 to be deposited into the foster family home liability insurance premium and claims payment special fund.

The sums appropriated shall be expended by the department of human services for the purposes of this part.

SECTION 6. New statutory material is underscored.

SECTION 7. This Act shall take effect upon its approval; provided that sections 3 and 5 shall take effect on July 1, 2005.

INTRODUCED BY:

_____________________________