THE SENATE

S.B. NO.

1379

THIRTY-SECOND LEGISLATURE, 2023

S.D. 1

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 legislature finds that the department of health has conducted investigations on two hundred twenty-one alleged unlicensed care homes during the past forty-eight months and has closed eleven homes and assessed $2,489,800 in administrative penalties.  Investigations on eighty-nine 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.

     Section 321-486.3, Hawaii Revised Statutes, and section 321-20, Hawaii Revised Statutes, cause confusion with regard to penalties.  Section 321-20(1), Hawaii Revised Statutes, contains administrative remedies and authorizes an administrative penalty not to exceed $1,000 for each day a violation of chapter 321, Hawaii Revised Statutes, occurs.  Operating a care facility without a certificate or license is a violation of chapter 321, Hawaii Revised Statutes, and thus would be punishable by section 321-20, Hawaii Revised Statutes.  However, section 321-486.3, Hawaii Revised Statutes, contains a separate penalty for operating a care facility without a certificate or license that is limited to $100 for each day of uncertified or unlicensed operation for the first violation, and up to $1,000 for each day of a subsequent 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.

     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 by repealing section 321-486.3, Hawaii Revised Statutes.

     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  Section 321-486.3, Hawaii Revised Statutes, is repealed.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 3.  Statutory material to be repealed is bracketed and stricken.

     SECTION 4.  This Act shall take effect on July 1, 2050.

 

 

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.  Effective 7/1/2050.  (SD1)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.