Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 154

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 S.B. No. 154 entitled: 


begs leave to report as follows:

     The purpose of this measure is to create a developmental
disabilities special fund, require the Department of Health (DOH)
to administer supported living stipends for persons with
developmental disabilities or mental retardation (DD/MR) and make
an appropriation for increased home and community based services
for persons with DD/MR.

     Your Committee received testimony in support of this measure
from DOH, State Planning Council on Developmental Disabilities,
The Arc of Hawaii, The Arc of Hilo, Arc of Kauai, Kona Krafts,
and fifteen private citizens.  The Department of Human Services
(DHS) submitted comments and deferred to DOH.  Testimony in
opposition to this measure was received from the Opportunities
for the Retarded, Inc.

     Your Committee believes that creation of a special fund will
maximize funds for DOH for community services using matching
federal funds, as required by section 333F-2(e), Hawaii Revised
Statutes.  Federal reimbursements would be directly deposited
into the special fund rather than deposited into the general

a                                                     SB154      
                                   STAND. COM. REP. NO. 486
                                   Page 2

     Your Committee intends that the supported living stipend
operate in a manner similar to DHS' supplemental security income
for the aged, blind, and disabled under Social Security.  This
would provide a modicum of financial relief to DD/MR persons who
are trying to make it on their own.

     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 S.B. No. 154 and recommends that it pass Second Reading 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

a                                                     SB154