Report Title:

Day Care Center for Adults; Adult Day Health Centers; Loans

 

Description:

Authorizes DBEDT to make low interest capital loans to operators of licensed day care centers for elder disabled and aged persons and to licensed adult day health centers, for purposes of construction, renovation, and adaptation.

THE SENATE

S.B. NO.

917

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO CAPITAL LOAN PROGRAM.

 

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

SECTION 1. The legislature finds that Hawaii's aging and disabled persons need day-time care in order to provide respite for their families. Current law provides for adult day health centers, licensed by the department of health to provide health care, and for day care centers for elder disabled and aged persons, licensed under the department of human services to provide supportive and protective care. Some facilities are licensed under both departments.

The legislature further finds that both kinds of centers are critical to allowing the affected population to remain living at home, while their caregiver families can work or otherwise obtain respite for themselves. As a result, possible institutionalization and its attendant high cost is avoided.

The purpose of this Act is to authorize loans to be made from the Hawaii capital loan revolving fund to operators of day care centers for elder disabled adults and aged persons and to adult day health centers, for the purpose of construction, renovation, and adaptation of their facilities.

SECTION 2. Section 210-6, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The department of business, economic development, and tourism may make loans to [small]:

(1) Small business concerns for the financing of plant construction, conversion, expansion, the acquisition of land for expansion, the acquisition of equipment, machinery, supplies, or materials, or for the supplying of working capital[.];

(2) Operators of licensed adult day health centers, as provided in section 321-11, or licensed day care centers for elder and disabled and aged persons, as defined in section 346-82, or both, for renovation or adaptation of the facility, or both; provided that an operator shall not be required to qualify as a small business concern;

(3) Prospective operators of not yet licensed adult day health centers, as provided in section 321-11, or licensed day care centers for elder and disabled and aged persons, as defined in section 346-82, or both, for construction of new facilities; provided that the operator, as a prerequisite to receiving a loan, presents appropriate design and construction plans formulated by an architect who is a member of the American Institute of Architects; provided further that if the prospective operator is denied an appropriate license, the repayment of the loan shall become due immediately; provided further that a prospective operator shall not be required to qualify as a small business concern.

The loans may be made in conjunction with loans made by other financial institutions, including the Small Business Administration. Where the loans made by the department are secured, the security may be subordinated to the loans made by other financial institutions, when the subordination is required to obtain loans from such institutions. The necessity for and the extent of security required in any loan shall be determined by the director of business, economic development, and tourism."

SECTION 3. 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, for deposit into the Hawaii capital loan revolving fund to provide loans under section 2 of this Act.

The sum appropriated shall be expended by the department of business, economic development and tourism for the purpose of this Act.

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval; provided that section 3 shall take effect on July 1, 2003.

INTRODUCED BY:

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