STAND. COM. REP. NO. 257

Honolulu, Hawaii

, 2023

RE: H.B. No. 1081

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Health & Homelessness, to which was referred H.B. No. 1081 entitled:

"A BILL FOR AN ACT RELATING TO PENALTIES FOR UNLICENSED CARE HOMES,"

begs leave to report as follows:

The purpose of this measure is to clarify the penalty to be assessed on any person who intentionally operates a care facility without a certificate or license.

Your Committee received testimony in support of this measure from the Department of Health, Kupuna Caucus of the Democratic Party of Hawai‘i, Adult Foster Homecare Association of Hawaii, United Caregivers of Hawaii, Community Homecare Association of Hawaii, Alliance of Professional Primary Care Administrators, Provider Helping Hands of Hawaii, Alliance of Residential Care Administrators, and ten individuals. Your Committee received comments on this measure from one individual.

Your Committee finds that unlicensed care homes pose a danger to the public, specifically to frail, elderly, and vulnerable populations. These unlicensed care homes charge thousands of dollars per month to multiple clients and are not inspected for qualify of care or to ensure caregiver qualifications.

Your Committee further finds that under existing law, there are two provisions for administrative penalties that can be imposed on care home operators. One of these penalties imposes a fine of only $100 for the first violation, up to a maximum of $1,000 for subsequent violations, which has little deterrence effect on an unlicensed care home operator making tens of thousands of dollars a month. The Department of Human Services also has additional remedies under section 321-20, Hawaii Revised Statutes, which allows for the assessment and payment of an administrative penalty up to $1,000 per day regardless of the number of prior violations. Your Committee finds this is a more appropriate penalty to deter operators from financially benefiting from operating a care home without a certificate or license.

Your Committee has amended this measure by:

(1) Changing the effective date to June 30, 3000, to encourage further discussion; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Health & Homelessness that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1081, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1081, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.

Respectfully submitted on behalf of the members of the Committee on Health & Homelessness,

____________________________

DELLA AU BELATTI, Chair