STAND. COM. REP. NO. 1734

Honolulu, Hawaii

RE: H.B. No. 1369

H.D. 1

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1369, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO NURSING FACILITIES,"

begs leave to report as follows:

The purpose and intent of this measure is to ensure the financial viability of long-term care facilities in the State.

Specifically, this measure:

(1) Makes the nursing facility sustainability program permanent;

(2) Makes various amendments to the nursing facility sustainability program;

(3) Repeals the nursing facility tax; and

(4) Appropriates funds from the nursing facility sustainability program special fund.

Your Committee received written comments in support of this measure from the Department of Human Services, Hawaii Pacific Health, Hawaii Primary Care Association, and The Queen's Health Systems.

Your Committee received written comments on this measure from the Department of Taxation and Healthcare Association of Hawaii.

Your Committee finds that, since it was established in 2012, the nursing facility sustainability program has served a critical role in strengthening the State's long-term care system. In particular, the program has helped long-term care facilities treat some of the most vulnerable patients in Hawaii. Your Committee further finds that making this program permanent will help to ensure the future sustainability of these facilities.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

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

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1369, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1369, H.D. 1, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair