Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Human Services and Housing, to which was referred H.B. No. 1671 entitled:

begs leave to report as follows:

The purpose of this bill is to amend the definition of "assisted living facility" by:

The Hawaii Association of Certified Nurses Aides, Hawaii Independent Condominium and Cooperative Owners, Hawaii Council of Associations of Apartment Owners, and many concerned individuals testified in support of this measure. Assisted Living Options Hawaii supported the intent of this measure. The Hawaii Long Term Care Association and several concerned individuals opposed this measure.

Your Committee finds that some condominiums were initially developed for seniors offering a menu of services on a "pay for services provided" basis. Many of the residents in these condominiums are able to care for themselves, but wish to "age in place" and may require a few services to assist with living.

However, some of these condominiums were recently licensed by the Department of Health (DOH) as "assisted living facilities." Residents of these condominiums claim that this new classification has driven up maintenance costs. One testifier claimed that 100 percent of the residents are now paying for services for less than 20 percent of the residents.

Your Committee notes that this measure will only assist private facilities. A testifier noted that discussions are currently in progress with regard to public facilities, and laws or rules will be drafted in the future to remedy this situation.

Your Committee recognizes that this matter will not be resolved immediately and that this measure is a work-in-progress that needs to receive further discussion. Services need to be available to the residents of these condominiums, but not necessarily at the "assisted living facility" level. Many of the residents are on fixed incomes and cannot afford to pay the increasing costs required by the condominium's status as an assisted living facility.

Furthermore, testimony was received that once a residence becomes an assisted living facility, it becomes extremely difficult to conduct financial or real-estate-related transactions with the property. Many of the residents of the condominiums that have been converted to assisted living facilities initially bought the property not only because of the services and amenities, but also as an investment.

Your Committee strongly believes that further discussion on this measure is needed; however, something needs to be done immediately to assist the residents of these condominiums. The financial burden that many of them are experiencing due to the conversion of their condominium units to assisted living facilities needs to be alleviated.

Upon further consideration, your Committee has amended this bill by:

As affirmed by the record of votes of the members of your Committee on Human Services and Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1671, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1671, H.D. 1, and be placed on the calendar for Third Reading.