STAND. COM. REP. NO.1165-02

Honolulu, Hawaii

, 2002

RE: S.B. No. 2416

S.D. 2

H.D. 2

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 2416, S.D. 2, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this bill is to make long-term care services available for most of Hawaii's citizens by:

(1) Establishing the Hawaii Long-Term Care Financing Program (Program) within the Department of Health, Executive Office on Aging (EOA);

(2) Establishing a Board of Trustees (Board) to administer the Program and, if necessary, require the Department of Taxation to assess, levy, and collect a long-term care tax;

(3) Requiring the Board to establish a financing method, eligibility criteria, and benefits for the Program;

(4) Establishing the Hawaii Long-Term Care Benefits Fund for contributions to the Program;

(5) Requiring the Board to consider an income tax-based funding mechanism; and

(6) Requiring the Board to provide to the Legislature a detailed proposal and necessary legislation to implement the Program.

The EOA, Department of Commerce and Consumer Affairs, Hawaii State Commission on the Status of Women, Policy Advisory Board for Elder Affairs, Kokua Council, Coalition for Affordable Long Term Care, Faith Action for Community Equity, and several individuals testified in support of this measure. Healthcare Association of Hawaii and Hawaii Coalition of Care Home Administrators supported the intent of this measure.

The Chamber of Commerce of Hawaii, NAIFA Hawaii, and several individuals opposed this measure. The Department of Taxation, Tax Foundation of Hawaii, and Legislative Information Services of Hawaii submitted comments.

Your Committee has amended this bill by, among other things:

(1) Establishing the Board within the Department of Budget and Finance instead of EOA;

(2) Reducing the number of trustees from seven to five;

(3) Reducing the term of office for trustees from six years to four years and allowing reappointment for one additional four-year term;

(4) Requiring a member of the general public to be a trustee;

(5) Establishing benefits packages for three levels of care;

(6) Requiring the Board to conduct a public education program to educate residents about the long-term care problem in Hawaii and the importance of long-term care financial preparation;

(7) Requiring the Board to submit to the 2003 Legislature its proposed recommendation; and

(8) Appropriating $100,000 to implement the Program.

 

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2416, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2416, S.D. 2, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

 

____________________________

DWIGHT Y. TAKAMINE, Chair