THE SENATE	S.B. NO.	1379
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO PENALTIES FOR UNLICENSED CARE HOMES.

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

SECTION 1. The department of health has conducted investigations on 221 alleged unlicensed care homes during the past 48 months and has closed 11 homes and assessed $2,489,800 in administrative penalties. Investigations on 89 unlicensed homes are underway or pending. Meanwhile, unlicensed care homes continue to operate and pose a danger to the public and to frail, elderly, and vulnerable populations.

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

Section 321-486.3, Hawaii Revised Statutes, causes confusion with section 321-20, Hawaii Revised Statutes, and causes confusion for the public. Section 321-20(1), Hawaii Revised Statutes, already contains administrative remedies and authorizes an administrative penalty not to exceed $1,000 for each day of violation whereas section 321-486.3, Hawaii Revised Statutes, limits the penalty from $100 for each day of uncertified or unlicensed operation for the first violation, up to $1,000 for each day of violation. Unlicensed care homes charge as much as $8,000 per month per client for multiple clients. A penalty under section 321-20(1), Hawaii Revised Statutes, of up to $1,000 per day regardless of the number of prior violations would be a better remedial penalty to prevent operators from financially benefiting from operating a care home without a license or certificate.

SECTION 2. Section 321-486.3, Hawaii Revised Statutes, is repealed.

["[§321-486.3] Penalty. Any person who intentionally operates a care facility without a certificate of license shall be guilty of a misdemeanor and shall be fined no more than:

(1) $100 for each day of uncertified or unlicensed operation for the first violation;

(2) $500 for each day of uncertified or unlicensed operation for the second violation; and

(3) $1,000 for each day of uncertified or unlicensed operation for the third and each succeeding violation."]

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 Statutory material to be repealed is bracketed and stricken.

SECTION 5. This Act, upon its approval, shall take effect on July 1, 2023.

INTRODUCED BY:	_____________________________
	BY REQUEST

Report Title:

Care Homes; Penalties

Description:

Clarifies the penalty to be assessed on any person who intentionally operates a care facility without a certificate or license.

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