STAND. COM. REP. NO. 889-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2062
                                     S.D. 1
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committees on Human Services and Housing and Consumer
Protection and Commerce, to which was referred S.B. No. 2062,
S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO LONG-TERM CARE,"

beg leave to report as follows:

     The purpose of this bill is to continue the work of the
Joint Legislative Committee on Long-term Care (Joint Legislative
Committee) by:

     (1)  Extending the life of the Joint Legislative Committee
          to June 30, 2002;

     (2)  Clarifying requirements of the actuarial study;

     (3)  Extending the completion date of the actuarial study to
          November 15, 2001;

     (4)  Making an appropriation of an unspecified amount to the
          House of Representatives and the Senate to fund the
          actuarial study; and

     (5)  Making appropriations to fund the Joint Legislative
          Committee expenses.

     Hawaii Catholic Conference, the Coalition for Affordable
Long Term Care, Kokua Council, Faith Action of Community Equity,

 
 
                                 STAND. COM. REP. NO. 889-00
                                 Page 2

 
the ILWU Local 142, the Hawaii State Commission on the Status of
Women, and an individual testified in support of this measure.
The Executive Office on Aging testified in support of this
measure with the inclusion of two amendments.  The Department of
Commerce and Consumer Affairs submitted comments.

     Within the past eighteen months, the Joint Legislative
Committee accomplished a great deal, including the regulation and
required recordkeeping of the long-term care insurance industry
using model regulations from the National Association of
Insurance Commissioners.  However, the Joint Legislative
Committee still has unfinished business of devising a financial
program for long-term care.

     Your Committees find that it is imperative that the Joint
Legislative Committee continue its vital work to ensure that a
financing plan for long-term care insurance is available for the
increasing number of Hawaii's elderly and disabled.

     Your Committees note that a similar bill, H.B. No. 1834,
H.D. 2, passed the House earlier this session after public
hearings before your Committees on Human Services and Housing and
Finance.

     After careful consideration, your Committees have amended
this measure by:

     (1)  Clarifying that the Joint Legislative Committee would
          require a contract to be given to an actuary to
          determine the projected cost of coverage of the
          product;

     (2)  Requiring that the actuarial study be limited to the
          number of alternatives that can be supported by the
          funds appropriated;

     (3)  Deleting the provision stating that the study shall
          select one model for recommendation and report on that
          model;

     (4)  Appropriating $200,000 to fund the actuarial study;

     (5)  Leaving open the fiscal year for the appropriations of
          the actuarial study and of expenses of the Joint
          Legislative Committee;

     (6)  Designating the Legislature, instead of the House of
          Representatives and the Senate, as the expending entity
          for the actuarial study; and

 
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     (7)  Making technical, nonsubstantive amendments for
          purposes of clarity and style.

     As affirmed by the records of votes of the members of your
Committees on Human Services and Housing and Consumer Protection
and Commerce that are attached to this report, your Committees
are in accord with the intent and purpose of S.B. No. 2062, S.D.
1, as amended herein, and recommend that it pass Second Reading
in the form attached hereto as S.B. No. 2062, S.D. 1, H.D. 1, and
be referred to the Committee on Legislative Management.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Human Services
                                   and Housing and Consumer
                                   Protection and Commerce,

                                   
                                   
                                   
                                   
______________________________     ______________________________
RON MENOR, Chair                   DENNIS A. ARAKAKI, Chair