Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 2542 entitled:

begs leave to report as follows:

The purpose of this bill is to adequately fund and encourage the establishment of alternative living arrangements for our elderly, by increasing the level of payments for Adult Residential Care Home (ARCH) services to unspecified levels.

Testimony in support of this measure was received from the Hawaii Coalition of Care Home Administrators, the Alliance of Residential Care Administrators, and from several care home operators. Testimony in opposition to this measure was received from the Department of Human Services.

Your Committee finds that increases in ARCH payments are overdue. For ten years, ARCHs have not received increases in the level of care payments. In the meantime, housing and other costs have escalated. ARCH providers are finding it difficult to care for patients at the current levels of payment which range from maximums of $521.90 and $629.90, depending on the extent of care needed. Your Committee further finds that there is a shortage of facilities for ARCH patients, and that the low rates for patient care discourages new facilities from opening.

Your Committee on Consumer Protection and Commerce defers to the Committee on Finance to determine fair rates of compensation for ARCH services.

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2542 and recommends that it be referred to the Committee on Finance.