Report Title:

ARCH; Special Insurance Premium and Claims Fund

Description:

Creates liability and homeowner's insurance premium and claims payment special fund in DOH to pay premiums for ARCH operators who cannot afford liability or homeowners' insurance; also pays for damage caused by State clients in ARCHs without adequate insurance. Appropriates $      and $        in FY 2003-2004.

HOUSE OF REPRESENTATIVES

H.B. NO.

914

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to adult residential care homes.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 321, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§321-   Adult residential care homes; liability and homeowner's insurance premium and claims payment special fund. (a) There is established within the department of health the liability and homeowner's insurance premium and claims payment special fund into which shall be deposited legislative appropriations and gifts from any source.

(b) Moneys in the fund shall be expended by the department for the purpose of supporting the operators of adult residential care homes in meeting their insurance liability needs as follows:

(1) To pay the liability insurance premiums of an adult residential care home operator who proves to the satisfaction of the director of health that the operation of the adult residential care home is under imminent threat of suspension or termination due to the operator's inability to pay for adequate liability insurance for the operation of the adult residential care home;

(2) To pay partial premiums for homeowner's insurance necessary for the operation of the adult residential care home; provided that the operator proves to the satisfaction of the director of health that the operation of the adult residential care home is under imminent threat of suspension or termination due to the operator's inability to pay for adequate homeowner's insurance for the operation of the adult residential care home; and

(3) To pay for claims for reimbursement for damage caused by a resident of an adult residential care home who is a medicaid client of the State, when claimed by an adult residential care home operator who does not have adequate liability insurance or homeowner's insurance coverage.

(c) Not more than $      of the fund may be used during any fiscal year for fund administration, including the hiring of personnel and the purchase of equipment and supplies.

(d) Any amount in excess of $        on June 30 of each year shall be deposited into the general fund.

(e) The department of health shall submit a report to the legislature, not less than twenty days prior to the convening of each regular session, concerning: the status of the liability and homeowner's insurance premium and claims payment special fund, including, but not limited to, the amount of moneys taken in by and expended from the fund; and the sources of receipts and uses of expenditures.

(f) The director of health shall adopt rules in accordance with chapter 91 to carry out the purposes of this section, including criteria for payment of premiums and claims."

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $       , or so much thereof as may be necessary for fiscal year 2003-2004, and the same sum, or so much thereof as may be necessary for fiscal year 2004-2005 for funding the liability and homeowner's insurance premium and claims payment special fund.

SECTION 3. The sums appropriated shall be expended by the department of health for the purposes of this Act.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval; provided that section 2 take effect on July 1, 2003.

INTRODUCED BY:

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