Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Transportation, Military Affairs and Government Operations, to which was referred S.C.R. No. 37 entitled:

begs leave to report as follows:

The purpose of this measure, as referred to your Committee, was to request Congress and the President of the United States to support legislation to repeal the Rescission Act of 1946 and the Second Supplemental Surplus Appropriation Rescission Act (1946), and to restore Filipino World War II veterans to full United States veterans' status and benefits.

Prior to the hearing on this measure, your Committee prepared a Proposed S.D. 1 which replaced the contents of the original measure with provisions requesting the Department of Health (DOH) and Department of Human Services (DHS) to conduct a study to determine an appropriate agency to oversee the funding and regulation of Adult Residential Care Homes (ARCH).

Testimony in support of the original measure was submitted by the Office of Veterans' Services. Testimony in support of the Proposed S.D. 1 was submitted by the Alliance of Residential Care Administrators and the Hawaii Coalition of Care Home Administrators. The DOH submitted testimony in opposition to the Proposed S.D. 1 version of this measure.

Your Committee finds that ARCH facilities serve an extremely important function in our State, by helping to care for persons who cannot feasibly live without assistance. Your Committee applauds the job done by the dedicated administrators of such care facilities.

Your Committee shares the community's concern, however, that while the DOH regulates ARCH facilities, the DHS is responsible for making payments for Medicaid clients who live in the facilities.

Your Committee finds that it would make more sense for a single agency to oversee the funding and regulation for these facilities. Your Committee further finds that any rules governing these facilities must be consistent with the goals and objectives of each Department.

Therefore, your Committee supports the Proposed S.D. 1 version of this measure, in order to increase the safety and efficiency of ARCH facilities.

Your Committee further amended this measure to include foster homes within the study. Foster homes serve a purpose similar to ARCH facilities, and your Committee believes that it makes sense to have a more integrated set of rules to cover ARCH facilities and foster homes.

Your Committee also amended this measure to direct the State Auditor to conduct the study, and to recommend integrated management strategies. The DOH testified that it lack the expertise to conduct the study. Your Committee believes that the Auditor should consult with the DOH and DHS, as well as relevant community groups, when conducting this study.

As affirmed by the record of votes of the members of your Committee on Transportation, Military Affairs and Government Operations that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 37, as amended herein, and recommends its adoption in the form attached hereto as S.C.R. No. 37, S.D. 1.