CONFERENCE COMMITTEE REP. NO.97-02

Honolulu, Hawaii

, 2002

RE: S.B. No. 2416

S.D. 2

H.D. 2

C.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

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. 2416, S.D. 2, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII LONG-TERM CARE FINANCING ACT,"

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 establish a long—term care financing program to assist Hawaii citizens in paying for long-term care services.

This measure is a product of the Joint Legislative Committee on Long-Term Care, formed pursuant to S.C.R. No. 23, C.D. 1, 2001, to develop and implement a plan for a dedicated source of revenue to provide a state—funded long—term care services system.

Specifically, this measure establishes a board of trustees to establish a benefits package for three levels of care in ascending order of intensity beginning with home health care and ending with extended adult residential care home services (including hospital services), and a method for financing such benefits.

After further consideration, your Committee on Conference has amended this measure by including the provisions common to S.B. No. 2416, H.D. 2, and H.B. No. 2638, S.D. 1. All appropriations in the H.D. 2 were deleted. As amended, this measure provides:

(1) A purpose section, which is a shortened version of the purpose section in H.B. No. 2638, S.D. 1;

(2) A definition section defining the term "long-term care services", from H.B. No. 2638, S.D. 1, to give the temporary trustees direction to pursue their plan;

(3) Establishment of a temporary board of trustees, appointed by the Governor, to design a tax-based long-term care system to finance long-term care services and to report to the 2003 Session. The Governor or designee serves as an ex officio member of the temporary board. The temporary board, among other things, would plan for a permanent board of trustees, and consider for purposes of its report, S.B. No. 2416 and H.B. No. 2638 and all drafts thereto, Special Committee Report No. 4, on S.C.R. No. 23, 2001, and the actuarial report made pursuant thereto;

(4) Establishment of the Hawaii long-term care benefits fund, beginning July 1, 2003, a provision common to both measures;

(5) Specification for the investment parameters and fiduciary and other obligations of the permanent board of trustees, including an annual actuarial report and report to the legislature, a provision common to both measures;

(6) Administrative expenses of the temporary board to be paid from moneys obtained through budget savings by the Governor; and

(7) An appropriation of $40,000, to the University of Hawaii at Manoa to convene a long-term care summit and to report to the legislature for the 2003 Session.

The intent of your Committee on Conference is that this measure enacts a statutory framework for the future development of a long-term care financing program. As such, this measure represents the initial step in an incremental progression of development of what is destined to become a model for the nation.

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. 2416, S.D. 2, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2416, S.D. 2, H.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________

DENNIS A. ARAKAKI, Co-Chair

____________________________

DAVID M. MATSUURA, Chair

____________________________

BERTHA C. KAWAKAMI, Co-Chair

____________________________

BRIAN T. TANIGUCHI, Co-Chair