Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 632
                                        H.D. 2
                                        S.D. 1

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Health and Human Services, to which was
referred H.B. No. 632, H.D. 2, entitled: 


begs leave to report as follows:

     The purpose of this measure, as received, is to allow the
Department of Human Services (DHS) to designate area agencies or
managed support organizations to administer or provide supports
and services for persons with developmental disabilities.

     Your Committee received testimony in support of this measure
from the DHS, State Planning Council on Developmental
Disabilities, Commission on Persons with Disabilities, Goodwill
Industries of Hawaii, ARC of Hilo, Catholic Charities, Home &
Community Services of Hawaii, Inc., ARC in Hawaii, Easter Seals
Hawaii, Research Center of Hawaii, Kona Krafts, and twelve
private individuals.  Testimony in support of the measure but
with opposition to designation of area agencies was received from
the ARC of Kauai and a private individual.  Informational
testimony was provided by the DHS.

     Your Committee has amended this measure by deleting its
contents and inserting S.B. No. 1036, S.D. 3, part II (with
deletion of designation of area agencies).  As amended, this

     (1)  Establishes a developmental disabilities special fund;

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                                   STAND. COM. REP. NO. 1173
                                   Page 2

     (2)  Requires the DHS to provide supported living stipends
          to persons with developmental disabilities or mental
          retardation (DD/MR); 

     (3)  Makes appropriations for:

          (A)  Increased home and community based services for
               persons with DD/MR and their families;

          (B)  State Planning Council on developmental
               disabilities to contract for a programmatic
               evaluation of case management services of the DOH;

          (C)  Title XIX home and community based waiver services
               for persons with DD/MR; and

     (4)  Requires that the federal funds ceiling for Title XIX
          programs be increased in the same amount as the
          appropriation under this measure.

     Your Committee is committed to improving life for persons
with DD/MR and their families.  Your Committee believes that the
State has a duty to provide for them to the greatest extent
possible within available resources.  Persons with DD/MR should
not be ignored in society.  They need to be helped by their
families, the community, and the State.  Your Committee will do
all it can to help.

     As affirmed by the record of votes of the members of your
Committee on Health and Human Services that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 632, H.D. 2, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B.
No. 632, H.D. 2, S.D. 1, and be referred to the Committee on Ways
and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Health and Human

                                   SUZANNE CHUN OAKLAND, Chair

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