STAND. COM. REP. NO. 668

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 644
                                     H.D. 2




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

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred H.B. No. 644, H.D. 1, 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 optimize the usage of adult
residential care homes in the State.

     Specifically, this bill requires the Departments of Human
Services and Health to do the following:

     (1)  Determine the highest and best use of existing licensed
          Type I adult residential care homes;

     (2)  Determine and establish the need for services provided
          by Type I adult residential care homes by geographic
          regions in the State by county;

     (3)  Develop rating scales with incentive points for Type I
          adult residential care homes with special features,
          including space and location, for example, convenience
          to shopping and recreation and amenities in the home;


 
a                                                         99-1775
 
 
 
 
                                 STAND. COM. REP. NO. 668
                                 Page 2

 
     (4)  Develop consumer brochures or pamphlets on selecting an
          appropriate Type I adult residential care home for
          prospective residents and families; and

     (5)  Report findings and recommendations, including any
          proposed implementing legislation, to the legislature
          no later than twenty days before the convening of the
          regular session of 2001.

     Your Committee received testimony in support of the intent
of the bill from the Departments of Human Services and Health.
The Department of Human Services does not have the data for Type
I adult residential care homes nor the staff necessary to develop
any rank order scheme and further recommends that brochures be
developed by the private sector.  The Department of Health
commented that determination of the best use of these homes and
the need for services, and the promotion of appropriate Type I
homes are not within the Department's scope of responsibilities
as a licensing authority and recommended discussion with the
Executive Office on Aging to fulfill these functions.

     Upon further review, your Committee has amended this bill by
deleting the content of section 2 of the bill, amending the
purpose in section 1 accordingly, and replacing it with section 2
in the form in which it existed in the original draft of this
bill, requiring a moratorium on the issuance of adult residential
care home licenses, but with several modifications.

     Specifically, in section 2, rather than designating only
homes that have three or fewer residents as underutilized, the
bill has been amended to require the Department of Health to
identify any vacancy within licensed home capacity.  Furthermore,
rather than resuming licensing when the percentage of
underutilized homes falls below ten per cent of the total number
of homes on each island, the trigger to resume licensing has been
changed to a resident vacancy basis.  The Department of Health is
required to determine, on each island, the Type I adult
residential care home:

     (1)  Total bed capacity;

     (2)  Total number of vacancies; and

     (3)  Percentage of vacancies,


 
a                                                         99-1775
 
 
                                 STAND. COM. REP. NO. 668
                                 Page 3

 
and resume licensing when the percentage of vacancies on each
island falls below ten per cent of the total bed capacity of
regular Type I adult residential care homes on each island.

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 644, H.D. 1, as amended herein, and
recommends that it be referred to the Committee on Finance, in
the form attached hereto as H.B. No. 644, H.D. 2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Consumer
                                   Protection and Commerce,



                                   ______________________________
                                   RON MENOR, Chair

 
a                                                         99-1775