STAND. COM. REP. 952

Honolulu, Hawaii

, 2003

RE: S.B. No. 1492

S.D. 1

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committees on Health and Human Services and Housing, to which was referred S.B. No. 1492, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ASSISTED LIVING FACILITIES,"

beg leave to report as follows:

The purpose of this bill is to specify that:

(1) An existing condominium may only become an assisted living facility (ALF) if a separate entity is formed and each unit owner can determine if the owner's unit will be placed in the condominium project or ALF; and

(2) Condominiums may not be ALFs without the authorization of the condominium project instruments.

The Hawaii Independent Condominium and Cooperative Owners, Hawaii Council of Associations of Apartment Owners, Hawaii Long Term Care Association, and many concerned individuals testified in support of this measure. Numerous individuals opposed this measure. The Department of Health (DOH) provided comments.

Your Committees find that some condominiums were initially developed for seniors offering a menu of services on a "pay for services provided" basis. Some of the residents in these condominiums are able to care for themselves, but wish to "age in place" and may eventually require a few services to assist with living. However, other residents purchased units in these condominiums for the purpose of having ALF services readily available should they need them.

Some of these condominiums were recently licensed by DOH as "assisted living facilities." Residents claim that this new classification has driven up maintenance costs. This has caused a rift between the owners of the units who have differing views on the condominium being classified as an ALF.

Your Committees believe that a compromise needs to be made, and would like to delay the effect of this measure by a year to allow DOH to study the issue and determine the impact upon the condominiums licensed as ALFs. Further, your Committee respectfully requests the Committee on Commerce and Consumer Protection to pay particular attention to the impact of having separate condominium associations for the ALF units and non-ALF units.

Your Committees have amended this bill by:

(1) Requiring DOH to conduct a study on the impact of this measure on the condominiums;

(2) Changing the effective date to July 1, 2004; and

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

As affirmed by the records of votes of the members of your Committees on Health and Human Services and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1492, S.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1492, S.D. 1, H.D. 1, and be referred to the Committee on Consumer Protection and Commerce.

 

Respectfully submitted on behalf of the members of the Committees on Health and Human Services and Housing,

 

____________________________

MICHAEL PUAMAMO KAHIKINA, Chair

____________________________

DENNIS A. ARAKAKI, Chair