REPORT TITLE:
Special Needs Housing Fund


DESCRIPTION:
Creates the special needs housing special fund to be used to
provide supportive housing for persons with mental illness and
substance abuse addictions.  (CD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2579
THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 2000                                H.D. 2
STATE OF HAWAII                                            C.D. 1
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO HOUSING.


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

 1      SECTION 1.  The legislature finds that current facilities
 
 2 and programs that provide special needs housing for persons with
 
 3 mental illness and substance abuse addictions have neither the
 
 4 funds nor the capacity to offer services to all those in need.  A
 
 5 conservative estimate based on the 1999 Homeless Needs Assessment
 
 6 Study suggests that between five hundred fifty and eight hundred
 
 7 mentally ill homeless persons are in need of affordable housing.
 
 8 Given the present waiting lists for Honolulu's Safe Haven, as
 
 9 many as two additional Safe Haven facilities are needed on the
 
10 island of Oahu alone to address the homeless problem of those
 
11 with mental illness.
 
12      In addition, the Strategic Planning Action Work Group for
 
13 Homeless Persons With Serious Mental Illness recommends further
 
14 development of three types of residential rehabilitation:
 
15 special supported housing, twenty-four-hour group homes, and
 
16 eight-to-sixteen-hour group homes.  Partners In Care, a statewide
 
17 coalition of homeless service providers, has prioritized other
 
18 needed services for the homeless population, such as supportive
 
19 housing for people with addictions within a framework of multiple
 
20 diagnoses.
 

 
Page 2                                                     2579
                                     S.B. NO.           S.D. 1
                                                        H.D. 2
                                                        C.D. 1

 
 1      The legislature further finds that state and county
 
 2 governments suffer unnecessary financial burdens when mainstream
 
 3 public support systems, such as prisons, hospitals, and emergency
 
 4 rooms, become the primary mechanism for treating acutely and
 
 5 chronically ill homeless persons.  Studies show that these ad hoc
 
 6 approaches to the mentally ill and substance abusing homeless
 
 7 population exceed the cost of outright treatment by tens of
 
 8 thousands of dollars per capita per year.  Ad hoc approaches that
 
 9 fail to comprehensively address mental illness, substance abuse,
 
10 and homelessness, will most likely prove unsustainable.
 
11      The legislature further finds that linking housing services
 
12 with mental health and substance abuse treatment is necessary to
 
13 provide mentally ill homeless persons with the support needed to
 
14 maintain housing and to ensure that homeless persons returning to
 
15 more independent housing are able to adjust to the new
 
16 responsibilities.  Community-based mental health housing services
 
17 will facilitate the State's efforts to comply with a federal
 
18 court stipulation and order that requires the state hospital to
 
19 provide adequate treatment in certain matters relating to patient
 
20 care and safety.  As part of the compliance efforts, the
 
21 department of health is presently downsizing the state hospital
 
22 to provide more community residential care, including housing
 
23 services.
 

 
Page 3                                                     2579
                                     S.B. NO.           S.D. 1
                                                        H.D. 2
                                                        C.D. 1

 
 1      The legislature further finds that there is great need in
 
 2 the State for supportive housing that comprehensively addresses
 
 3 mental illness and substance abuse in the homeless population.
 
 4      The purpose of this Act is to create a special needs housing
 
 5 special fund to provide supportive housing for persons with
 
 6 mental illness and substance abuse addictions in the homeless
 
 7 populations.
 
 8      SECTION 2.  Chapter 201G, Hawaii Revised Statutes, is
 
 9 amended by adding a new section to be appropriately designated
 
10 and to read as follows:
 
11      "§201G-    Special needs housing special fund.  (a)  There
 
12 is established in the state treasury a special fund to be known
 
13 as the special needs housing special fund, that shall be used to
 
14 provide funds for purchase, renovation, or construction of
 
15 supportive housing for persons with mental illness and substance
 
16 abuse addictions in the homeless population.
 
17      (b)  All moneys for the fund shall be provided from
 
18 legislative appropriations, gifts, donations, and grants from
 
19 public agencies and private persons.
 
20      (c)  All interest earned or accrued on money deposited in
 
21 the fund shall become part of the fund.  The fund shall be
 
22 administered by the corporation."
 
23      SECTION 3.  Section 36-27, Hawaii Revised Statutes, is
 

 
Page 4                                                     2579
                                     S.B. NO.           S.D. 1
                                                        H.D. 2
                                                        C.D. 1

 
 1 amended to read as follows:
 
 2      "§36-27  Transfers from special funds for central service
 
 3 expenses.  Except as provided in this section, and
 
 4 notwithstanding any other law to the contrary, from time to time,
 
 5 the director of finance, for the purpose of defraying the
 
 6 prorated estimate of central service expenses of government in
 
 7 relation to all special funds, except the:
 
 8      (1)  Special summer school and intersession fund under
 
 9           section 302A-1310;
 
10      (2)  School cafeteria special funds of the department of
 
11           education;
 
12      (3)  Special funds of the University of Hawaii;
 
13      (4)  State educational facilities improvement special fund;
 
14      (5)  Convention center capital and operations special fund
 
15           under section 206X-10.5;
 
16      (6)  Special funds established by section 206E-6;
 
17      (7)  Housing loan program revenue bond special fund;
 
18      (8)  Housing project bond special fund;
 
19      (9)  Aloha Tower fund created by section 206J-17;
 
20     (10)  Domestic violence prevention special fund under section
 
21           321-1.3;
 
22     (11)  Spouse and child abuse special account under section
 
23           346-7.5;
 

 
Page 5                                                     2579
                                     S.B. NO.           S.D. 1
                                                        H.D. 2
                                                        C.D. 1

 
 1     (12)  Spouse and child abuse special account under section
 
 2           601-3.6;
 
 3     (13)  Funds of the employees' retirement system created by
 
 4           section 88-109;
 
 5     (14)  Unemployment compensation fund established under
 
 6           section 383-121;
 
 7     (15)  Hawaii hurricane relief fund established under chapter
 
 8           431P;
 
 9     (16)  Hawaii health systems corporation special funds;
 
10     (17)  Boiler and elevator safety revolving fund established
 
11           under section 397-5.5;
 
12     (18)  Tourism special fund established under section 201B-11;
 
13     (19)  Department of commerce and consumer affairs' special
 
14           funds;
 
15     (20)  Compliance resolution fund established under section
 
16           26-9;
 
17     (21)  Universal service fund established under chapter 269;
 
18     (22)  Integrated tax information management systems special
 
19           fund under section 231-3.2;
 
20     (23)  Insurance regulation fund under section 431:2-215;
 
21     (24)  Hawaii tobacco settlement special fund under section
 
22           328L-2; [and]
 
23     (25)  Emergency budget and reserve fund under section 328L-3;
 

 
Page 6                                                     2579
                                     S.B. NO.           S.D. 1
                                                        H.D. 2
                                                        C.D. 1

 
 1           and
 
 2      (26) Special needs housing special fund under section
 
 3           201G-  ;
 
 4 shall deduct five per cent of all receipts of all other special
 
 5 funds, which deduction shall be transferred to the general fund
 
 6 of the State and become general realizations of the State.  All
 
 7 officers of the State and other persons having power to allocate
 
 8 or disburse any special funds shall cooperate with the director
 
 9 in effecting these transfers.  To determine the proper revenue
 
10 base upon which the central service assessment is to be
 
11 calculated, the director shall adopt rules pursuant to chapter 91
 
12 for the purpose of suspending or limiting the application of the
 
13 central service assessment of any fund.  No later than twenty
 
14 days prior to the convening of each regular session of the
 
15 legislature, the director shall report all central service
 
16 assessments made during the preceding fiscal year."
 
17      SECTION 4.  Section 36-30, Hawaii Revised Statutes, is
 
18 amended by amending subsection (a) to read as follows:
 
19      "(a)  Each special fund, except the:
 
20      (1)  Transportation use special fund established by section
 
21           261D-1;
 
22      (2)  Special summer school and intersession fund under
 
23           section 302A-1310;
 

 
Page 7                                                     2579
                                     S.B. NO.           S.D. 1
                                                        H.D. 2
                                                        C.D. 1

 
 1      (3)  School cafeteria special funds of the department of
 
 2           education;
 
 3      (4)  Special funds of the University of Hawaii;
 
 4      (5)  State educational facilities improvement special fund;
 
 5      (6)  Special funds established by section 206E-6;
 
 6      (7)  Aloha Tower fund created by section 206J-17;
 
 7      (8)  Domestic violence prevention special fund under section
 
 8           321-1.3;
 
 9      (9)  Spouse and child abuse special account under section
 
10           346-7.5;
 
11     (10)  Spouse and child abuse special account under section
 
12           601-3.6;
 
13     (11)  Funds of the employees' retirement system created by
 
14           section 88-109;
 
15     (12)  Unemployment compensation fund established under
 
16           section 383-121;
 
17     (13)  Hawaii hurricane relief fund established under chapter
 
18           431P;
 
19     (14)  Convention center capital and operations special fund
 
20           established under section 206X-10.5;
 
21     (15)  Hawaii health systems corporation special funds;
 
22     (16)  Tourism special fund established under section 201B-11;
 
23     (17)  Compliance resolution fund established under section
 

 
Page 8                                                     2579
                                     S.B. NO.           S.D. 1
                                                        H.D. 2
                                                        C.D. 1

 
 1           26-9;
 
 2     (18)  Universal service fund established under chapter 269;
 
 3     (19)  Integrated tax information management systems special
 
 4           fund;
 
 5     (20)  Insurance regulation fund under section 431:2-215;
 
 6     (21)  Hawaii tobacco settlement special fund under section
 
 7           328L-2; [and]
 
 8     (22)  Emergency and budget reserve fund under section 328L-3;
 
 9           and
 
10      (23) Special needs housing special fund under section
 
11           201G-   ;
 
12 shall be responsible for its pro rata share of the administrative
 
13 expenses incurred by the department responsible for the
 
14 operations supported by the special fund concerned."
 
15      SECTION 5.  Statutory material to be repealed is bracketed.
 
16 New statutory material is underscored.
 
17      SECTION 6.  This Act shall take effect upon its approval.