Honolulu, Hawaii

, 2019


RE: H.B. No. 582

H.D. 2





Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii




Your Committee on Finance, to which was referred H.B. No. 582, H.D. 2, entitled:




begs leave to report as follows:


The purpose of this measure is to adequately address the various issues concerning the elderly and disabled and the community healthcare industry while ensuring consumer protection for Hawaii's elderly and disabled care recipients by:


(1) Authorizing the Department of Health to conduct unannounced visits for the inspection for relicensing of adult residential care homes, expanded adult residential care homes, and adult day care centers;


(2) Requiring that adult day care centers be licensed or certified by the Department of Health;


(3) Specifying that any person who intentionally operates a community-based foster family home, adult foster home, or adult day care center without a license shall be guilty of a misdemeanor;


(4) Repealing amendments made in Act 184, Session Laws of Hawaii 2016, regarding licensing of adult residential care homes that have yet to take effect and that have been rendered duplicative by this measure;


(5) Authorizing either the University of Hawaii or a neutral third party to maintain a forum for posting information on vacancies at any state-licensed care facility;


(6) Establishing fees in unspecified amounts for licensure, relicensure, certification, and recertification of adult residential care homes, expanded adult residential care homes, developmental disabilities domiciliary homes, community care foster family homes, adult day care centers, adult foster homes for developmentally disabled individuals, other homes, and case managers who work with the specified facilities;


(7) Requiring the Department of Health to report on the fees and any problems collecting those fees;


(8) Establishing a Caregiver and Case Manager Compensation Task Force to develop minimum compensation rates for caregivers and address other compensation issues; and


(9) Requiring the Department of Health to adopt rules for standards of conditions and competence for all regulated facilities and for fees, in unspecified amounts, for certificates of approval.


Case Management Professionals, Inc., Community Home Care Association of Hawaii, Alliance of Residential Care Administrators, Big Island Adult Foster Home Operator, Big Island Adult Residential Care Home Operators, Oahu County Committee on Legislative Priorities of the Democratic Party of Hawaii, Adult Foster Homecare Association of Hawaii, Community Care Foster Family Home Program, and several concerned individuals supported this measure. The Department of Health, Department of Human Services, Hawaii Caregivers Industry Institute, United Group of Home Operators, and a few concerned individuals offered comments.


As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 582, H.D. 2, and recommends that it pass Third Reading.


Respectfully submitted on behalf of the members of the Committee on Finance,