STAND. COM. REP. NO. 48

Honolulu, Hawaii

, 2021

RE: H.B. No. 224

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Health, Human Services, & Homelessness, to which was referred H.B. No. 224 entitled:

"A BILL FOR AN ACT RELATING TO THE STATE HEALTH PLANNING AND DEVELOPMENT AGENCY,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Establish a funding cap on the State Health Planning and Development Special Fund of $2,000,000;

(2) Establish administrative penalties for persons who do not comply with an approved certificate of need;

(3) Exempt hospice, psychiatric, and substance abuse facilities and certain dialysis center services from the certificate of need requirements; and

(4) Appropriate funds from the State Health Planning and Development Special Fund to fund positions in the State Health Planning and Development Agency.

Your Committee received testimony in support of this measure from the State Health Planning and Development Agency. Your Committee received testimony in opposition to this measure from the Hawaii Substance Abuse Coalition; Hawai‘i Care Choices; Po‘ailani Inc.; Bristol Hospice; Navian Hawaii; Kauai Hospice, Inc.; and thirteen individuals. Your Committee received comments on this measure from the Hawaii Primary Care Association, Healthcare Association of Hawaii, Grassroots Institute of Hawaii, and three individuals.

Your Committee finds that increasing the special fund funding cap for the State Health Planning and Development Agency and establishing administrative penalties for noncompliance with approved certificates of need will allow the State Health Planning and Development agency to support existing positions and hire new positions, such as that of an investigator, to support the Agency's work in enforcing compliance.

Your Committee has amended this measure by:

(1) Removing a reference to the State Health Planning and Development Agency as the agency responsible for administrating the State Health Planning and Development Special Fund;

(2) Removing the certificate of need exemption for hospice facilities;

(3) Clarifying that the certificate of need exemptions apply to psychiatric services, special treatment facilities, and chronic renal dialysis services, as those terms are defined in the Hawaii Administrative Rules;

(4) Changing the effective date to July 1, 2060, to encourage further discussion; and

(5) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Health, Human Services, & Homelessness that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 224, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 224, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Health, Human Services, & Homelessness,

____________________________

RYAN I. YAMANE, Chair