Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Health and Human Services, to which was referred S.B. No. 3 entitled:

beg leave to report as follows:

The purpose of this measure is to authorize the Department of Health to reimburse developmental disabilities residential services for individuals with developmental disabilities or mental retardation.

The Judiciary, the State Council on Developmental Disabilities, the Disability and Communication Access Board, Hawaii Disability Rights Center, Kona Krafts, the Arc of Kauai, Alternative Care Services, Inc., the Arc of Hawaii, and one individual submitted testimony in support of this measure. The Department of Human Services and the Department of Health submitted comments.

Your Committees find that developmental disabilities residential service providers provide important residential care services for individuals with developmental disabilities or mental retardation. As the State Council on Developmental Disabilities testified, providers of these services are not being adequately reimbursed for the quality residential services they provide to these individuals. The current system of categorizing, licensing, and reimbursing providers of residential services is fragmented and does not offer the flexibility needed to adequately reimburse providers of residential services. This measure broadens the category of "domiciliary homes" with "residential settings" which allows for more flexibility and latitude.

Upon further consideration, your Committees amended this measure by deleting the phrase "if appropriate" from subsection 321-15.9(a) and added "with the exception of a residence of the person's choice if the person with the help of family and friends, if necessary, determines that the person can be sustained with supports, and the supports are attached to the person" to ensure that individuals living in their own apartments would not be displaced.

Your Committee has also amended this measure by changing the effective date to 2010 to encourage ongoing discussion of this issue.

As affirmed by the records of votes of the members of your Committees on Health and Human Services that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3, S.D. 1, and be referred to the Committee on Ways and Means.