STAND. COM. REP. NO.  590

Honolulu, Hawaii

                , 2013

RE:   H.B. No. 880

      H.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 880, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE NURSING FACILITY SUSTAINABILITY PROGRAM,"

begs leave to report as follows:

The purpose of this measure is to extend the Nursing Facility Sustainability Program.

     More specifically, this measure:

     (1)  Extends the repeal date of the Nursing Facility Sustainability Program to June 30, 2014; and

     (2)  Appropriates $12,000,000 out of the nursing facility sustainability program special fund to be used for purposes consistent with the special fund.

Testimony in support of this measure was submitted by the Department of Human Services, Healthcare Association of Hawaii, Hawaii Health Systems Corporation, Hale Makua Wailuku, Pearl City Nursing Home, Hale Makua Health Services, and Hawaii Long Term Care Association.

Your Committee finds that the Nursing Facility Sustainability Program leverages available federal funding for the Department of Human Services to make supplemental payments to nursing facilities to help offset their uncompensated care costs, thereby promoting the sustainability of long-term care facilities in the State.  This measure will benefit Hawaii residents by enabling nursing facilities to continue to provide much needed long-term care services.

Your Committee has amended this measure by:

     (1)  Deleting references to "QUEST" and "section 1115 demonstration waiver," including the definition of the latter term, in sections 1 and 2 of Act 156, Session Laws of Hawaii 2012, for consistency with other provisions in the measure;

     (2)  Changing the effective date to July 1, 2030, to facilitate further discussion; and

     (3)  Making technical nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 880, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 880, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair