Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 632
                                     H.D. 2

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


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


begs leave to report as follows:

     The purpose of this bill is to provide necessary services
for persons with developmental disabilities (DD) and mental
retardation (MR) by:

     (1)  Authorizing the Department of Health (DOH) to designate
          area agencies or managed support organizations;

     (2)  Providing supported living stipends to enable persons
          with DD or MR to live independently in a setting other
          than a licensed residential facility;

     (3)  Establishing the Developmental Disabilities Special
          Fund for targeted case management services for persons
          with DD or MR;

     (4)  Appropriating funds for home and community-based
          services and a programmatic evaluation of case
          management services provided by DOH; and

     (5)  Requiring the Legislative Auditor to conduct an audit
          of case management services provided by DOH.

                                 STAND. COM. REP. NO. 1005
                                 Page 2

     The State Planning Council on Developmental Disabilities,
the Arc of Hilo, Easter Seals Hawaii, Catholic Charities, the
Protection and Advocacy Agency of Hawaii, Research Center of
Hawaii, and numerous individuals testified in support of this
measure.  The DOH and Kona Krafts, the Arc of Kona testified in
support of the intent of this measure.  The Department of Human
Services, The Arc of Kauai, The Arc in Hawaii, Home & Community
Services of Hawaii, Inc., Winners at Work, Goodwill Industries of
Hawaii, and an individual commented on this measure.

     Your Committee has amended this bill by:

     (1)  Deleting the establishment of the Developmental
          Disabilities Special Fund;

     (2)  Clarifying the appropriation to the Department of Human
          Services for home and community-based waiver services;

     (3)  Making technical, nonsubstantive amendments for clarity
          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.
632, H.D. 1, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as H.B. No. 632, H.D. 2.

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

                                   DWIGHT Y. TAKAMINE, Chair