Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Human Services, to which was referred S.B. No. 1213 entitled:

begs leave to report as follows:

The purpose of this measure is to appropriate funds to increase the level of care payments for types I and II adult residential care homes.

Testimony in support of this measure was submitted by the Department of Human Services and the Hawaii Coalition of Care Home Administrators.

Your Committee finds that the current level of payments by the State to types I and II adult residential care homes has not kept pace with the increase in the cost of living. Your Committee finds that these homes provide an important service, both to individuals served and the community at large, by offering a less expensive long-term care alternative that delays institutional placement for seniors and the disabled. However, relevant federal and state rules and regulations call for strict requirements, which are costly, as well as an increase in costs related to insurance and personnel without a corresponding increase in payments. Thus, your Committee believes that an increase in the payments to adult residential care homes is essential so that operators can continue to afford to care for the elderly and disabled.

Your Committee recommends that the Department of Human Services continues exploring ways to finance this measure.

As affirmed by the record of votes of the members of your Committee on Human Services that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1213 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.