Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1247 entitled:

begs leave to report as follows:

The purpose of this bill is to allow care homes to continue to provide services to the community by providing funds to pay the insurance premiums and reimbursement claims of adult residential care homes and community care foster family homes that cannot afford insurance. Among other things, this bill establishes a Liability Insurance Premium and Claims Payment Special Fund and appropriates an unspecified amount into the fund for insurance premium and reimbursement claim payments by the Department of Health.

The Department of Health opposed the bill. The Department of Human services commented.

Your Committee finds that liability insurance premiums for adult residential care home operations are so expensive that the operators of many of these care homes are in danger of suspension or termination of their services.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1247 and recommends that it be referred to the Committee on Finance.