THE SENATE S.B. NO. 1627 THIRTY-THIRD LEGISLATURE, 2025 STATE OF HAWAII A BILL FOR AN ACT relating to social services. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: THE SENATE S.B. NO. 1627 THIRTY-THIRD LEGISLATURE, 2025 STATE OF HAWAII THE SENATE S.B. NO. 1627 THIRTY-THIRD LEGISLATURE, 2025 STATE OF HAWAII A BILL FOR AN ACT relating to social services. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: SECTION 1. The legislature finds that the monthly needs allowance afforded to individuals living in certain long-term care facilities and monthly state supplemental payment to specified care providers was recently increased by $25 and $132, respectively. However, the state supplemental payment is administered by the Social Security Administration, which issues one monthly payment to the recipient or representative payee that includes the state supplemental payment and supplemental security income. Therefore, due to the ceiling limit, the $25 needs allowance increase is being deducted from the $132 state supplemental payment increase, which was not the intent of the legislature. Therefore, the purpose of this Act is to: (1) Clarify that the monthly needs allowance afforded to individuals living in certain long-term care facilities is not intended to replace or affect funds received as a state supplemental payment for domiciliary care and shall be supplemental to any funds provided to a recipient as a state supplemental payment for domiciliary care; and (2) Appropriate funds. SECTION 2. Section 346-53, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows: "(c) The director, pursuant to chapter 91, shall determine the rate of payment for domiciliary care, including care provided in licensed developmental disabilities domiciliary homes, community care foster family homes, and certified adult foster homes, to be provided to recipients who are eligible for federal supplemental security income or public assistance, or both. The director shall provide for level of care payment and needs allowance as follows: (1) [For] Beginning October 1, 2025, for adult residential care homes classified as facility type I, licensed developmental disabilities domiciliary homes as defined under section 321-15.9, community care foster family homes as defined under section 321-481, and certified adult foster homes as defined under section 321-11.2, the state supplemental payment, which includes the care rate and needs allowance, shall not exceed [$784;] $829; and (2) [For] Beginning October 1, 2025, for adult residential care homes classified as facility type II, the state supplemental payment, which includes the care rate and needs allowance, shall not exceed [$892.] $937. If the operator does not provide the quality of care consistent with the needs of the individual to the satisfaction of the department, the department may remove the recipient to another facility. The department shall handle abusive practices under this section in accordance with chapter 91. Nothing in this subsection shall allow the director to remove a recipient from an adult residential care home or other similar institution if the recipient does not desire to be removed and the operator is agreeable to the recipient remaining, except where the recipient requires a higher level of care than provided or where the recipient no longer requires any domiciliary care." SECTION 3. Section 346D-4.5, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows: "(c) The State's supplemental payment, as authorized by section 346-53(c)(1) and (2), for a needs allowance under subsection (a) shall be increased by an amount necessary to bring the allowance up to $75 per month. The payment under this section shall be afforded to an individual notwithstanding that the individual is incapacitated; provided that the moneys may be spent on behalf of the client, with a written accounting, by the operator of the residence or facility." SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the department of human services' community-based residential support program (HMS605) to effectuate the purposes of this Act. The sums appropriated shall be expended by the department of human services for the purposes of this Act. SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 6. This Act shall take effect on July 1, 2025. INTRODUCED BY: _____________________________ SECTION 1. The legislature finds that the monthly needs allowance afforded to individuals living in certain long-term care facilities and monthly state supplemental payment to specified care providers was recently increased by $25 and $132, respectively. However, the state supplemental payment is administered by the Social Security Administration, which issues one monthly payment to the recipient or representative payee that includes the state supplemental payment and supplemental security income. Therefore, due to the ceiling limit, the $25 needs allowance increase is being deducted from the $132 state supplemental payment increase, which was not the intent of the legislature. Therefore, the purpose of this Act is to: (1) Clarify that the monthly needs allowance afforded to individuals living in certain long-term care facilities is not intended to replace or affect funds received as a state supplemental payment for domiciliary care and shall be supplemental to any funds provided to a recipient as a state supplemental payment for domiciliary care; and (2) Appropriate funds. SECTION 2. Section 346-53, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows: "(c) The director, pursuant to chapter 91, shall determine the rate of payment for domiciliary care, including care provided in licensed developmental disabilities domiciliary homes, community care foster family homes, and certified adult foster homes, to be provided to recipients who are eligible for federal supplemental security income or public assistance, or both. The director shall provide for level of care payment and needs allowance as follows: (1) [For] Beginning October 1, 2025, for adult residential care homes classified as facility type I, licensed developmental disabilities domiciliary homes as defined under section 321-15.9, community care foster family homes as defined under section 321-481, and certified adult foster homes as defined under section 321-11.2, the state supplemental payment, which includes the care rate and needs allowance, shall not exceed [$784;] $829; and (2) [For] Beginning October 1, 2025, for adult residential care homes classified as facility type II, the state supplemental payment, which includes the care rate and needs allowance, shall not exceed [$892.] $937. If the operator does not provide the quality of care consistent with the needs of the individual to the satisfaction of the department, the department may remove the recipient to another facility. The department shall handle abusive practices under this section in accordance with chapter 91. Nothing in this subsection shall allow the director to remove a recipient from an adult residential care home or other similar institution if the recipient does not desire to be removed and the operator is agreeable to the recipient remaining, except where the recipient requires a higher level of care than provided or where the recipient no longer requires any domiciliary care." SECTION 3. Section 346D-4.5, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows: "(c) The State's supplemental payment, as authorized by section 346-53(c)(1) and (2), for a needs allowance under subsection (a) shall be increased by an amount necessary to bring the allowance up to $75 per month. The payment under this section shall be afforded to an individual notwithstanding that the individual is incapacitated; provided that the moneys may be spent on behalf of the client, with a written accounting, by the operator of the residence or facility." SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the department of human services' community-based residential support program (HMS605) to effectuate the purposes of this Act. The sums appropriated shall be expended by the department of human services for the purposes of this Act. SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 6. This Act shall take effect on July 1, 2025. INTRODUCED BY: _____________________________ INTRODUCED BY: _____________________________ Report Title: Department of Human Services; Needs Allowance; Long-term Care Facilities; State Supplemental Payments; Appropriation Description: Clarifies that the monthly needs allowance afforded to individuals living in certain long-term care facilities is not intended to replace or affect funds received as a state supplemental payment for domiciliary care and shall be supplemental to any funds provided to a recipient as a state supplemental payment for domiciliary care. Appropriates funds. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. Report Title: Department of Human Services; Needs Allowance; Long-term Care Facilities; State Supplemental Payments; Appropriation Description: Clarifies that the monthly needs allowance afforded to individuals living in certain long-term care facilities is not intended to replace or affect funds received as a state supplemental payment for domiciliary care and shall be supplemental to any funds provided to a recipient as a state supplemental payment for domiciliary care. Appropriates funds. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.