STAND. COM. REP. NO. 2144

Honolulu, Hawaii

RE:    S.B. No. 2057

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Human Services, to which was referred S.B. No. 2057 entitled:

"A BILL FOR AN ACT RELATING TO THE NURSING FACILITY SUSTAINABILITY PROGRAM,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Extend the sunset date of the nursing facility sustainability program to December 31, 2015;

     (2)  Appropriate funds out of the nursing facility sustainability program special fund for fiscal year 2014-2015; and

     (3)  Exempt the nursing facility sustainability program special fund from the central service expenses assessment.

     Your Committee received testimony in support of this measure from the Department of the Attorney General, Department of Human Services, Hawaii Health Systems Corporation, Healthcare Association of Hawaii, and Hawaii Long Term Care Association.

     Your Committee finds that funding the nursing facility sustainability program is necessary to increase the sustainability of nursing facilities in Hawaii and that nursing facilities are a critical part of the long-term safety net for the State's aging population.  Your Committee further finds that without the exemption provided by this measure, the nursing facility sustainability program will have to pay approximately $500,000 per year in central service expenses assessments, which inhibits the program's ability to sustain nursing facilities and improve services to Medicaid recipients.

     Your Committee has amended this measure by amending session law language to ensure that all necessary provisions related to the nursing facility sustainability program special fund, including provisions related to monies deposited into the fund, are extended to December 31, 2015.

     As affirmed by the record of votes of the members of your Committee on Human Services that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2057, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2057, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Human Services,

____________________________

SUZANNE CHUN OAKLAND, Chair