CONFERENCE COMMITTEE REPORT NO.103

                            Honolulu, Hawaii
                                            , 2000

                            RE:   S.B. No. 2579
                                  S.D. 1
                                  H.D. 2
                                  C.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Conference on the disagreeing vote of the
Senate to the amendments proposed by the House of Representatives
in S.B. No. 2579, S.D. 1, H.D. 2, entitled:  

     "A BILL FOR AN ACT RELATING TO HOUSING," 

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this measure is to create a special needs
housing special fund.

     The special needs housing special fund would be used to
provide supportive housing for persons with mental illness and
substance abuse conditions.  The fund would be administered by
the Housing and Community Development of Hawaii.

     This measure will provide supportive housing which
comprehensively addresses mental illness and substance abuse in
the homeless population.


 
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     Current facilities and programs that provide special needs
housing for persons with mental illness and substance abuse
addictions have neither the funds nor the capacity to offer
services to all those in need.  State and county governments
suffer unnecessary financial burdens when mainstream public
support systems, such as prisons, hospitals, and emergency rooms,
become the primary mechanism for treating acutely and chronically
ill homeless persons.  Studies show that these ad hoc approaches
to the mentally ill and substance abusing homeless population
exceed the cost of outright treatment by tens of thousands of
dollars per capita per year.  Ad hoc approaches that fail to
comprehensively address mental illness, substance abuse, and
homelessness will most likely prove unsustainable.

     Combining housing services with mental health and substance
abuse treatment is necessary to provide mentally ill homeless
persons with the support needed to maintain housing and to ensure
that homeless persons returning to more independent housing are
able to adjust to their new demands.  

     Your Committee on Conference has amended this measure by:

     (1)  Clarifying the purpose section to reflect that this
          measure facilitates the efforts of the Department of
          Health to implement community housing in the downsizing
          of the Hawaii State Hospital; 

     (2)  Deleting the general obligation bond issuance; and

     (3)  Exempting the special needs housing special fund from
          transfers for central service expenses and charges for
          administrative expenses.

     As affirmed by the record of votes of the managers of your
Committee on Conference that is attached to this report, your
Committee on Conference is in accord with the intent and purpose
of S.B. No. 2579, S.D. 1, H.D. 2, as amended herein, and
recommends that it pass Final Reading in the form attached hereto
as S.B. No. 2579, S.D. 1, H.D. 2, C.D. 1.


 
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                                   Respectfully submitted on
                                   behalf of the managers:

  ON THE PART OF THE HOUSE           ON THE PART OF THE SENATE




_____________________________     _______________________________
Rep. DENNIS A. ARAKAKI            Sen. SUZANNE CHUN OAKLAND
Co-Chair                          Co-Chair



_____________________________     _______________________________
Rep. ALEXANDER SANTIAGO           Sen. CAROL FUKUNAGA
Co-Chair                          Co-Chair



_____________________________     
Rep. BOB NAKASONE                  
Co-Chair                          


 
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