Creates a new category of residential services for persons with developmental disabilities or mental retardation. Authorizes the department of health to license, certify, regulate or enter into purchase of service agreements for domiciliary homes and apartment complexes for persons with developmental disabilities or mental retardation. Clarifies that the department of human services is not excluded from licensing, certifying and regulating child foster homes and providers that serve persons with developmental disabilities or mental retardation. Appropriates a sum to be expended for the purposes of the Act. (SB3 HD1)

A BILL FOR AN ACT

SECTION 1. Developmental disabilities residential service providers provide important residential services, a type of human service, for individuals with developmental disabilities or mental retardation. Presently, the providers of these services are not being adequately reimbursed by the State for the high quality residential services they provide to these individuals. As a result, a number of developmental disabilities domiciliary homes are forced to close due to a lack of adequate funding. This is a significant concern to the State, given that the majority of these people would have been cared for by the State at Waimano training school and hospital, prior to its closing in June 1999.

The purpose of this Act is to ensure that developmental disabilities residential service providers are adequately reimbursed for the residential services they provide.

SECTION 2. Section 321-15.9, Hawaii Revised Statutes, is amended to read as follows:

"[[]§321-15.9[]] Developmental disabilities [domiciliary homes.] residential services. (a) The department of health [is authorized to] may license, certify, regulate, or enter into purchase of service agreements for developmental disabilities domiciliary homes and developmental disabilities apartment complexes for individuals with developmental disabilities or mental retardation who are unable to live independently and who require supervision, support, or care, but do not require care by licensed nurses [in a domiciliary setting]; provided that nothing in this section shall exclude the department of human services from licensing, certifying, regulating, or entering into purchase of service agreements for child foster homes or providers that serve persons with developmental disabilities or mental retardation.

(b) For the purposes of this section[,]:

"Developmental disabilities" shall be as defined under section 333E-2[; and "mental retardation" shall be as defined under section 333F-1].

"Developmental disabilities domiciliary home" means a residence for not more than five persons with developmental disabilities or mental retardation who require twenty-four-hour supervision or care, excluding licensed nursing care.

"Developmental disabilities apartment complex" means an apartment building composed of five or more separate apartment units in which every apartment unit, except for one apartment unit occupied by the operator or staff for the complex, is dedicated to providing residences for individuals with developmental disabilities or mental retardation who do not require twenty-four hour supervision or care.

"Mental retardation" shall be as defined under section 333F-1.

(c) The director shall adopt rules regarding developmental disabilities domiciliary homes in accordance with chapter 91 [which] that shall be designed to:

(d) Rules adopted under this section shall be enforced by the director.

(e) No single apartment in a developmental disabilities apartment complex licensed, certified, regulated, or funded under this section shall be occupied by more than two residents with developmental disabilities or mental retardation.

[(e)] (g) The department shall maintain a registry of all [facilities licensed] developmental disabilities domiciliary homes and developmental disabilities apartment complexes under this section and a current inventory of vacancies[to facilitate the placement of individuals in these facilities].

[(f)] (h) The rate of payment for residents in the developmental disabilities domiciliary homes shall be determined on the same basis as domiciliary care homes as provided under section 346-53.

(i) Any additional payment to the providers of developmental disabilities domiciliary homes and operators of developmental disabilities apartment complexes shall be determined and paid by the department of health."

SECTION 3. Section 346-53, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) The director, pursuant to chapter 91, shall determine the rate of payment for domiciliary care provided to recipients eligible either for Federal Supplementary Security Income, or public assistance in accordance with state standards, or both. The director shall provide for level of care payment as follows:

If the operator does not provide the quality of care consistent with the needs of the individual to the satisfaction of the department, the department may remove the recipient to another facility.

The department shall handle abusive practices under this section in accordance with chapter 91.

Nothing in this subsection allows the director to remove a recipient from an adult residential care home or other similar institution if the recipient does not desire to be removed and the operator is agreeable to the recipient remaining, except where the recipient requires a higher level of care than provided, or where the recipient no longer requires any domiciliary care."

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $1,500,000 or so much thereof as may be necessary for fiscal year 2005-2006 for payment of residential services provided by developmental disabilities domiciliary homes and developmental disabilities apartment complexes.

The sum appropriated shall be expended by the department of health for the purposes of this Act.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2005.