Bill Text: HI HB1420 | 2016 | Regular Session | Introduced
Bill Title: HHSC; Regional System Boards
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2015-12-17 - Carried over to 2016 Regular Session. [HB1420 Detail]
Download: Hawaii-2016-HB1420-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1420 |
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TWENTY-EIGHTH LEGISLATURE, 2015 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to the hawaii health systems corporation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the decentralization of personnel, purchasing and other administrative functions to the four regions within the Hawaii health systems corporation caused inefficiencies that are detrimental to the financial stability of the system, operational effectiveness, and employee morale. The current organizational structure of the Hawaii health systems corporation is ineffective. Consequently, there is an urgent need to stabilize the network of public hospitals that are the primary source of medical care on the neighbor islands, as well as a safety net for thousands of elderly and needy patients.
The purpose of this Act is to centralize personnel, purchasing, and other administrative functions within the Hawaii health systems corporation to achieve greater efficiency, effectiveness, and meaningful financial accountability.
SECTION 2. Chapter 323F, Hawaii Revised Statutes, is amended by adding a new section to part II to be appropriately designated and to read as follows:
"§323F- Financial and management audits. The auditor shall conduct a financial and management audit of the Hawaii health systems corporation every five years."
SECTION 3. Section 323F-1, Hawaii Revised Statutes, is amended as follows:
1. By inserting a new definition to be appropriately inserted and to read:
""Regional public health care facility management advisory committee" means a regional committee that advises the chief executive officer and the corporation board."
2. By repealing the definition of "regional system board":
[""Regional
system board" means a community-based governing board of directors of a
regional system of the corporation."]
SECTION 4. Section 323F-2, Hawaii Revised Statutes, is amended to read as follows:
"§323F-2 Hawaii health systems corporation. (a) There is established the Hawaii health systems corporation, which shall be a public body corporate and politic and an instrumentality and agency of the State. The corporation shall be placed within the department of health for the administrative purposes specified in section 26-35(a)(6) only.
(b) The corporate organization shall be divided into five regional systems, as follows:
(1) The [Oahu
regional health care system;] city and county of Honolulu;
(2) The [Kauai
regional health care system;] county of Kauai;
(3) The [Maui
regional health care system;] county of Maui, except for the county of
Kalawao;
(4) The [east
Hawaii regional health care system,] eastern section of the county of
Hawaii, comprising the Puna district, north Hilo district, south Hilo
district, Hamakua district, and Kau district; and
(5) The [west
Hawaii regional health care system,] western section of the county of
Hawaii, comprising the north Kohala district, south Kohala district, north
Kona district, and south Kona district;
and shall be identified as regional systems I, II, III, IV, and V, respectively."
SECTION 5. Section 323F-3, Hawaii Revised Statutes, is amended to read as follows:
"§323F-3
Corporation board. (a) The corporation shall be governed by [an eighteen-member]
a thirteen-member board of directors that shall carry out the duties and
responsibilities of the corporation [other than those duties and
responsibilities relating to the establishment of any captive insurance company
pursuant to section 323F-7(c)(20) and the operation thereof].
[(b)
The members of the corporation board shall be appointed as follows:
(1) The director of health as an ex
officio, voting member;
(2) The five regional chief executive
officers as ex officio, nonvoting members;
(3) Three members who reside in the
county of Maui, two of whom shall be appointed by the Maui regional system
board and one of whom shall be appointed by the governor, all of whom shall
serve as voting members;
(4) Two members who reside in the eastern
section of the county of Hawaii, one of whom shall be appointed by the East
Hawaii regional system board and one of whom shall be appointed by the
governor, both of whom shall serve as voting members;
(5) Two members who reside in the western
section of the county of Hawaii, one of whom shall be appointed by the West
Hawaii regional system board and one of whom shall be appointed by the
governor, both of whom shall serve as voting members;
(6) Two members who reside on the island
of Kauai, one of whom shall be appointed by the Kauai regional system board and
one of whom shall be appointed by the governor, both of whom shall serve as
voting members;
(7) Two members who reside on the island
of Oahu, one of whom shall be appointed by the Oahu regional system board and
one of whom shall be appointed by the governor, both of whom shall serve as
voting members; and
(8) One member who shall be appointed by
the governor and serve as an at-large voting member.
The appointed
board members who reside in the county of Maui, eastern section of the county
of Hawaii, western section of the county of Hawaii, on the island of Kauai, and
on the island of Oahu shall each serve for a term of four years; provided that
the terms of the initial appointments of the members who are appointed by their
respective regional system boards shall be as follows: one of the initial
members from the county of Maui shall be appointed to serve a term of two years
and the other member shall be appointed to serve a term of four years; the initial
member from East Hawaii shall be appointed to serve a term of two years; the
initial member from West Hawaii shall be appointed to serve a term of four
years; the initial member from the island of Kauai shall be appointed to serve
a term of two years; and the initial member from the island of Oahu shall be
appointed to serve a term of four years; and provided further that the terms of
the initial appointments of the members who are appointed by the governor shall
be four years. The at-large member appointed by the
governor shall serve a term of two years.]
(b) Ten members of the corporation board shall be appointed by the governor pursuant to section 26-34 as follows:
(1) One member from region I who resides in the city and county of Honolulu;
(2) One member from region II who resides in the county of Kauai;
(3) One member from region III who resides in the county of Maui;
(4) One member from region IV who resides in the eastern section of the county of Hawaii;
(5) One member from region V who resides in the western section of the county of Hawaii;
(6) One member from region II who resides in the county of Kauai or from region III who resides in the district of Hana or on the island of Lanai; provided that in no event shall the member be appointed from the same region for two consecutive terms; and
(7) Four at-large members who reside in the State.
The eleventh member shall be the chairperson of the executive public health facility management advisory committee, who shall serve as an ex officio, voting member.
The twelfth member, who shall serve as a voting member, shall be a physician with active medical staff privileges at one of the corporation's public health facilities. The physician member shall serve a term of two years. The initial physician member shall be from region II, and subsequent physician members shall come from regions IV, III, and V, respectively. The physician member position shall continue to rotate in this order. The physician member shall be appointed to the corporation board by a simple majority vote of the members of the executive public health facility management advisory committee from a list of qualified nominees submitted by the public health facility management advisory committee for the region from which the physician member is to be chosen. If for any reason a physician member is unable to serve a full term, the remainder of that term shall be filled by a physician from the same region.
The thirteenth member shall be the director of health or the director's designee, who shall serve as an ex officio, voting member.
Prior to the transfer date, the public health facility management advisory committees appointed pursuant to section 323F-10 for each county may recommend names to the governor for each position on the corporation board designated for a region that corresponds to its county. After the transfer date, the public health facility management advisory committees appointed pursuant to section 323F-10 for each region may make recommendations to the governor. The appointed board members shall serve for a term of four years; provided that upon the initial appointment of the first ten members:
(1) Two at-large members shall be appointed for a term of two years;
(2) Three at-large members shall be appointed for a term of three years; and
(3) Five regional members shall be appointed for a term of four years.
Any
vacancy shall be filled in the same manner provided for the original
appointments. The corporation board shall elect its own chair from among its
members. [Appointments to the corporation board shall be as representative
as possible of the system's stakeholders as outlined in this subsection. The
board member appointments shall strive to create a board that includes
expertise in the fields of medicine, finance, health care administration,
government affairs, human resources, and law.]
(c) The selection, appointment, and confirmation of any nominee shall be based on ensuring that board members have diverse and beneficial perspectives and experiences and that they include, to the extent possible, representatives of the medical, business, management, law, finance, and health sectors, and patients or consumers. Members of the board shall serve without compensation but may be reimbursed for actual expenses, including travel expenses incurred in the performance of their duties.
(d) Any member of the board may be removed for cause by the governor or for cause by vote of a two-thirds majority of the board's members then in office. For purposes of this section, cause shall include without limitation:
(1) Malfeasance in office;
(2) Failure to attend regularly called meetings;
(3) Sentencing for conviction of a felony, to the extent allowed by section 831-2; or
(4) Any other cause that may render a member incapable or unfit to discharge the duties required under this chapter.
Filing nomination papers for elective office or appointment to elective office, or conviction of a felony consistent with section 831-3.1, shall automatically and immediately disqualify a board member from office."
SECTION 6. Section 323F-4, Hawaii Revised Statutes, is amended to read as follows:
"§323F-4
Board meetings. (a) The corporation board [and each regional system
board] shall be exempt from part I of chapter 92 and shall meet no fewer
than four times [a] per year[; provided that the regional
system boards and the corporation board shall meet together at least once a
year.] Each regional [board] public health facility
management advisory committee shall meet at least six times each year;
provided that two of these meetings shall be public community meetings for the
purpose of informing the community and taking comment on the regional [system's]
public health facility management advisory committee performance [if
these meetings are in addition to the four board meetings]. The public
community meetings shall be advertised in a newspaper of general circulation in
the regional system at least two weeks in advance.
(b)
All business of the corporation board [and each regional system board]
shall be conducted at a regular or special meeting at which a quorum is
present, consisting of at least a majority of the directors then in office. The
corporation board [and each regional system board] shall adopt
procedural rules for meetings, not subject to chapter 91, that shall include
provisions for meetings via electronic and telephonic communications and other
methods that allow the [boards] board to conduct business in a
timely and efficient manner. Any action of the corporation board [or each
regional system board] shall require the affirmative vote of a majority of
those present and voting at the meeting; except that a vote of two-thirds of
the entire membership of the respective board then in office shall be required
for any of the following actions:
(1) Removal by the corporation board [or
respective regional system board] of one of its members; provided that
the eleventh and twelfth members set forth in section 323F-3 may be removed only
pursuant to sections 323F-10 and 323F-10.5;
(2) Amendment by the corporation [or a
regional system] board of its bylaws;
(3) Hiring or removing [a regional] the
chief executive officer[;] of the corporation; and
[(4) Filling of vacancies on a board; and
(5)] (4) Any
other actions as provided by the corporation [or regional system board]
bylaws[, except the hiring or removing of the chief executive officer of the
corporation]."
SECTION 7. Section 323F-5, Hawaii Revised Statutes, is amended to read as follows:
"§323F-5
Disclosure of interests. All corporation [and regional system]
board members and employees of the corporation shall be subject to chapter
84."
SECTION 8. Section 323F-7, Hawaii Revised Statutes, is amended to read as follows:
"§323F-7 Duties and powers of the
corporation [and regional system boards. (a) Notwithstanding any other law to the
contrary and unless otherwise specified, only those duties and powers related
to corporation-wide matters, including but not limited to corporation-wide
budgeting, personnel policies, procurement policies, fiscal policies,
accounting policies, policies related to affiliations, joint ventures and
contracts, regulatory compliance, risk management, continuing medical education
programs, strategic planning, and capital planning, including the issuance of
revenue bonds in any amount, shall be carried out by the corporation board in
collaboration with the regional system boards. Duties and powers related to
the operation of facilities within each regional system, including but not
limited to regional system and facility budgeting, employment and removal of
regional system and facility personnel, purchasing, regional system strategic
and capital planning, organization, quality assurance, improvement and
reporting, credentialing of medical staff, and the issuance of revenue bonds in
any amount with corporation board approval, shall be carried out by the
regional system boards, either directly or by delegation to regional and
facility administration. Unless otherwise prohibited, the duties and powers granted
to the corporation board may be delegated to the regional system boards.
(b) Duties and powers exercised by the
regional system boards under this chapter or delegated to the regional system
boards by the corporation board shall be consistent with corporation-wide
policies. Wherever appropriate, corporation-wide policies shall take into
account differences among regional systems and among types of facilities,
particularly acute care, critical access, and long-term care facilities within
the system.
New corporation-wide policies, and major
changes to existing policies other than those changes mandated by legal or
regulatory requirements, shall be developed by the corporation board after
consultation with a policies committee. The policies committee shall be made
up of representatives of the corporation board and each regional system board
or designees of each board. The corporation board shall have two
representatives on this committee. The corporation board shall review and
consider approval of the policies within thirty days of transmittal by the
policies committee or at the next board meeting; provided that, if the policies
committee fails to take action within thirty days of receiving the proposed
policy, the corporation board may consider and adopt or reject or revise the
policy. The regional system boards and corporation board, as needed, may
submit a request to the committee to alter corporation-wide policies along with
detailed justification for the request. The regional system boards and the
corporation board shall collaboratively establish a procedure to further
implement this section.
(c)] (a) Notwithstanding any other law to the
contrary, the corporation [and any of the regional system boards] shall have
and exercise the following duties and powers:
(1) Developing [corporation-wide
policies, procedures, and rules necessary or appropriate to plan, operate,
manage, and control the system of public health facilities and services without
regard to chapter 91; provided that each regional system board shall be
responsible for its own] corporate-wide policies, procedures, and
rules necessary or appropriate to plan, operate, manage, and control the system
of public health facilities [within its own regional system consistent
with corporation policies;] and services without regard to chapter 91;
(2) Evaluating the need for [additional]
health facilities and services; [provided that each regional system board
shall be responsible for the evaluation within its own regional system;]
(3) Entering into and performing any
contracts, leases, cooperative agreements, partnerships, or other transactions
whatsoever that may be necessary or appropriate in the performance of its
purposes and responsibilities, and on terms the corporation[, or regional
system boards, may deem appropriate,] with either:
(A) Any agency or instrumentality of the United States, or with any state, territory, or possession, or with any subdivision thereof; or
(B) Any person, firm, association, partnership, or corporation, whether operated on a for-profit or not-for-profit basis;
provided
that the transaction furthers the public interest; [and provided further
that if any dispute arises between any contract, lease, cooperative agreement,
partnership, or other transaction entered into by the corporation and a
regional system board with regard to matters solely within that regional
system, after July 1, 2007, the contract, lease, cooperative agreement,
partnership, or other transaction entered into by the regional system board shall
prevail; and provided further that such agreements are consistent with
corporation policies;]
(4) Conducting activities and entering into business relationships as the corporation board, or any regional system board, deems necessary or appropriate, including but not limited to:
(A) Creating
nonprofit corporations, including but not limited to charitable fund-raising
foundations, to be controlled wholly by the corporation, [any regional
system board,] or jointly with others;
(B) Establishing, subscribing to, and owning stock in business corporations individually or jointly with others; and
(C) Entering
into partnerships and other joint venture arrangements, or participating in
alliances, purchasing consortia, health insurance pools, or other cooperative
arrangements, with any public or private entity; provided that any corporation,
venture, or relationship entered into under this section furthers the public
interest; provided further that this paragraph shall not be construed to
authorize the corporation [or a regional system board] to abrogate any
responsibility or obligation under paragraph (15);
[provided
that each regional system board shall be responsible for conducting the
activities under this paragraph in its own regional system consistent with
policies established by the corporation board;]
(5) Participating
in and developing prepaid health care service and insurance programs and other
alternative health care delivery programs, including programs involving the
acceptance of capitated payments or premiums that include the assumption of
financial and actuarial risk; [provided that each regional system board
shall be responsible for conducting the activities under this paragraph in its
own regional system consistent with policies established by the corporation
board;]
(6) Executing,
in accordance with all applicable bylaws, rules, and laws, all instruments
necessary or appropriate in the exercise of any powers of the corporation [or
regional system boards];
(7) Preparing
and executing all corporation-wide budgets, policies, and procedures [or any
regional system budgets, policies, and procedures; provided that the regional
system boards shall submit their regional and facility budgets to the
corporation to be consolidated into a corporation-wide budget for purposes of
corporation-wide planning and appropriation requests. Regional system and
facility budgets shall be received by the corporation and shall be included in
the corporation-wide budget upon submittal to the corporation];
(8) Setting
rates and charges for all services provided by the corporation without regard
to chapter 91; [provided that the duty and power of the corporation board
shall be limited to approving the rates and charges developed by the regional
system boards for the regional system's facilities and services. Rates and
charges may vary among regional systems and facilities and may be consolidated
with the rates of other regional systems into one charge master. Third-party
payer contracts may be negotiated at the corporation-wide level with input from
the regional systems, taking into consideration the rates set by the regional
system boards. For purposes of securing revenue bonds, the corporation or
regional system board may covenant to set, and if necessary increase, rates and
charges as needed to pay debt service and related obligations plus a coverage
factor;]
(9) Developing
a centralized corporation-wide hospital system that is subject to
chapters 76 and 89; [provided that employment of regional system and
facility personnel shall be the responsibility of the regional system boards
pursuant to corporation-wide policies and procedures, applicable laws, rules,
regulations, and collective bargaining agreements;]
(10) Developing
the corporation's corporation-wide capital and strategic plans [or any
regional system board's capital and strategic plans; provided that each
regional system board shall be responsible for development of capital and
strategic plans in its own regional system that shall be consistent with, and
incorporated into, the overall corporation-wide plans; and provided further
that the corporation and each regional system board shall be entitled to
undertake the acquisition, construction, and improvement of property,
facilities, and equipment to carry out these capital and strategic plans];
(11) Suing
and being sued; provided that [only the corporation may sue or be sued; and
provided further that] the corporation [and regional system
boards] shall enjoy the same sovereign immunity available to the State;
(12) Making
and altering corporation board [and regional system board] bylaws for
its organization and management without regard to chapter 91 [and consistent
with this chapter; provided that each regional system board shall be
responsible for the final approval of its regional system board bylaws];
(13) Adopting
rules without regard to chapter 91 governing the exercise of the corporation's [or
regional system boards'] powers and the fulfillment of its purpose under
this chapter;
(14) Entering
into any contract or agreement whatsoever, not inconsistent with this chapter
or the laws of this State, and authorizing the corporation[, regional system
boards, and chief executive officers] and its chief executive officer
to enter into all contracts, execute all instruments, and do all things
necessary or appropriate in the exercise of the powers granted in this chapter,
including securing the payment of bonds; [provided that the corporation
board shall delegate to a regional system board its authority to enter into and
execute contracts or agreements relating to matters exclusively affecting that
regional system; provided further that a regional system board shall exercise
this power consistent with corporation-wide policies; and provided further that
contracts or agreements executed by a regional system board shall encumber only
the regional subaccounts of that regional system board;]
(15) Issuing
revenue bonds [up to $100,000,000] subject to the approval of the
governor or the director of finance; provided that:
(A) All revenue bonds shall be issued pursuant to part III, chapter 39;
(B) The corporation [and any regional
system board] shall have the power to issue revenue bonds in any amount
without regard to any limitation in chapter 39; and
(C) The corporation shall have the power to
incur debt, including the issuance of revenue bonds in any amount[, and the
regional system boards shall have the power to issue revenue bonds in any
amount upon approval by the corporation board];
(16) Reimbursing
the state general fund for debt service on general obligation bonds or
reimbursable general obligation bonds issued by the State for the purposes of
the corporation [or any regional system board];
(17) Pledging
or assigning all or any part of the receipts, revenues, and other financial
assets of the corporation [or the regional system boards] for purposes
of meeting or securing bond or health systems liabilities; [provided that
each regional system board shall be responsible for conducting the activities
under this paragraph in its own regional system. Any pledge or assignment by
the corporation or any regional system board to secure revenue bonds or health
system liabilities shall be valid and binding in accordance with its terms
against the pledgor, creditors, and all others asserting rights thereto from
the time the pledge or assignment is made, without the need of physical
delivery, recordation, filing, or further act. The corporation shall not take
or omit to take any act that would interfere with, impair, or adversely affect
any pledge or assignment by a regional system board pursuant to this chapter.
In connection with issuing revenue bonds or related obligations, consistent
with corporation policies and procedures, any regional system board may make
such other covenants, binding on the regional system board and the corporation,
that the regional system board determines to be necessary or appropriate to
establish and maintain security for the revenue bonds or related obligations;]
(18) Owning,
purchasing, leasing, exchanging, or otherwise acquiring property, whether real,
personal, or mixed, tangible or intangible, and of any interest therein, in the
name of the corporation, [which] for property that is not
owned or controlled by the State but is owned or controlled by the corporation;
[provided that:
(A) Regional
system boards shall have custodial control over facilities and physical assets
in their respective regional systems. A regional system board may own,
purchase, lease, exchange, or otherwise acquire property, whether real,
personal, or mixed, tangible or intangible, and of any interest therein, other
than property owned or controlled by the corporation, in the name of the
regional system board; provided further that a regional system board shall be subject
to section 323F-3.5; and
(B) Each
regional system board shall be responsible for conducting the activities under
this paragraph in its own regional system;]
(19) Maintaining,
improving, pledging, mortgaging, selling, or otherwise holding or disposing of
property, whether real, personal, or mixed, tangible or intangible, and of any
interest therein, at any time and manner, in furtherance of the purposes and
mission of the corporation [or any regional system board]; provided that
the corporation [or any regional system board] legally holds or controls
the property in its own name; provided further that other than to secure
revenue bonds and related obligations and agents, and
to transition into a new entity, the corporation [or any regional system board] shall not sell,
assign, lease, hypothecate, mortgage, pledge, give, or dispose of all or
substantially all of its property; [and provided further that each regional
system board shall be responsible for conducting the activities under this
paragraph in its own regional system, and control over such property shall be
delegated to each regional system board; provided further that this paragraph
shall not be construed to authorize the sale, pledge, or mortgage of real
property under the control of the corporation or a regional system board;]
(20) Purchasing
insurance and creating captive insurers in any arrangement deemed in the best
interest of the corporation, including but not limited to funding and payment
of deductibles and purchase of reinsurance; [provided that only the
corporation shall have the power to create captive insurers to benefit public
health facilities and operations in all regional systems; and provided further
that a regional system board may purchase insurance for its regional system in
collaboration with the other regional systems and the corporation until captive
coverage is provided by the corporation;]
(21) Acquiring by condemnation, pursuant to chapter 101, any real property required by the corporation to carry out the powers granted by this chapter;
(22) Depositing
any moneys of the corporation [or any regional system board] in any
banking institution within or without the State, and appointing, for the
purpose of making deposits, one or more persons to act as custodians of the moneys
of the corporation [or any regional system board; provided that regional
system boards may deposit moneys in banking institutions pursuant to
corporation-wide guidelines established by the corporation board];
(23) Contracting
for and accepting any gifts, grants, and loans of funds, property, or any other
aid in any form from the federal government, the State, any state agency, or
any other source, or any combination thereof, and complying, subject to this
chapter, with the terms and conditions thereof; [provided that the regional
system boards shall be responsible for contracting for and accepting any gifts,
grants, loans, property, or other aid if intended to benefit the public health
facilities and operations exclusively in their respective regional systems; and
provided further that all contracting for or acceptance of gifts, grants,
loans, property, or other aid shall be consistent with corporation-wide
policies established by the corporation board;]
(24) Providing
health and medical services for the public directly or by agreement or lease
with any person, firm, or private or public corporation, partnership, or
association through or in the health facilities of the corporation [or
regional system boards] or otherwise; [provided that the regional system
boards shall be responsible for conducting the activities under this paragraph
in their respective regional systems;]
(25) Approving
medical staff bylaws, rules, and medical staff appointments and reappointments
for all public health facilities of the corporation [or any regional system
board], including but not limited to determining the conditions under which
a health professional may be extended the privilege of practicing within a
health facility, [as determined by the respective regional system board and]
consistent with corporation-wide policies], and adopting and implementing
reasonable rules, without regard to chapter 91, for the credentialing and peer
review of all persons and health professionals within the facility; [provided
that regional system boards shall be the governing body responsible for all
medical staff organization, peer review, and credentialing activities to the
extent allowed by law;]
(26) (A) Investing
any funds not required for immediate disbursement in property or in securities
that meet the standard for investments established in chapter 88 as provided by
the corporation board [or any regional system board]; provided that
proceeds of bonds and moneys pledged to secure bonds may be invested in
obligations permitted by any document that authorizes the issuance or securing
of bonds; and provided further that the investment assists the corporation [or
any regional system board] in carrying out its public purposes; selling
from time to time securities thus purchased and held, and depositing any
securities in any bank or financial institution within or without the State.
Any funds deposited in a banking institution or in any depository authorized in
this section shall be secured in a manner and subject to terms and conditions as
the corporation board [or a regional system board] may determine, with
or without payment of any interest on the deposit, including without limitation
time deposits evidenced by certificates of deposit. Any bank or financial
institution incorporated under the laws of this State may act as depository of
any funds of the corporation [or a regional system board] and may issue
indemnity bonds or may pledge securities as may be required by the corporation [or
regional system] board; [provided that regional system boards may
exercise the powers under this subsection with respect to financial assets of
the regional system consistent with corporation-wide policies;] and
(B) Notwithstanding
subparagraph (A), contracting with the holders of any of its notes or bonds as
to the custody, collection, securing, investment, and payment of any moneys of
the corporation [or regional system board] and of any moneys held in
trust or otherwise for the payment of notes or bonds and carrying out the
contract. Moneys held in trust or otherwise for the payment of notes or bonds
or in any way to secure notes or bonds, and deposits of [such] the
moneys, may be secured in the same manner as moneys of the corporation [or
regional system board], and all banks and trust companies are authorized to
give security for the deposits;
(27) Entering
into any agreement with the State, including but not limited to contracts for
the provision of goods, services, and facilities in support of the
corporation's programs [or the regional system boards' programs], and
contracting for the provision of services to or on behalf of the State; [provided
that the regional system boards shall be responsible for entering into
agreements to provide goods, services, and facilities in support of programs in
their respective regional systems consistent with corporation-wide policies;]
(28) Having a seal and altering the same at pleasure;
(29) Waiving,
by means that the corporation [or regional system board] deems
appropriate, the exemption from federal income taxation of interest on the
corporation's [or regional system boards'] bonds, notes, or other
obligations provided by the Internal Revenue Code of 1986, as amended, or any
other federal statute providing a similar exemption;
(30) Developing
internal policies and procedures for the procurement of goods and services,
consistent with the goals of public accountability and public procurement
practices, and subject to management and financial legislative audits; provided
that [the regional system boards shall be responsible for developing
internal policies and procedures for each of their regional systems consistent
with the corporation's policies and procedures; and further provided that:
[(A) The
regional system boards and the corporation board shall enjoy the exemption
under section 103-53(e);
(B) The
regional system boards shall enjoy the exemption under chapter 103D; and
(C) The]
the corporation shall be subject to chapter 103D;
(31) Authorizing
and establishing positions; [provided that regional system boards shall be
responsible for hiring and firing regional and facility personnel consistent
with corporation policies, except a regional chief executive officer shall only
be hired or dismissed upon the approval of the regional system board as further
set forth in section 323F-8.5;]
(32) Having
and exercising all rights and powers necessary or incidental to or implied from
the specific powers granted in this chapter, which [specific powers]
shall not be considered as a limitation upon any power necessary or appropriate
to carry out the purposes [and intent] of this chapter; [provided
that the regional system boards shall be responsible for having and exercising
all powers and rights with respect to matters in their regional systems
consistent with the law;] and
(33) [Each
regional system, through its regional system board, shall:
(A) Develop
policies and procedures necessary or appropriate to plan, operate, manage, and
control the day-to-day operations of facilities within the regional system that
are consistent with corporation-wide policies;
(B) Exercise
custodial control over and use of all assets of the corporation that are
located in the regional system pursuant to this chapter; and
(C) Expend
funds within its approved regional system budget and expend additional funds in
excess of its approved regional system budget upon approval of the corporation
board.] Calling upon the attorney general for legal services that the
corporation may require.
[(d)
Each regional system board shall not be subject to chapters 36 to 38, 40, 41D,
and 103D as well as part I of chapter 92 and shall enjoy the exemptions
contained in sections 102-2 and 103-53(e), except as otherwise provided in this
chapter. The corporation shall not be subject to chapters 36 to 38, 40, and
41D, as well as part I of chapter 92, and shall enjoy the exemptions contained
in sections 102-2 and 103-53(e); provided that
the exemption provided under this subsection to chapter 37D shall only apply to
financing agreements of $5,000,000 or less; provided further that the aggregate
value of financing agreements per fiscal year shall not exceed $25,000,000.]
(b) The corporation shall not be subject to chapters 36, 37, 37D, 38, 40, and 41D, except as otherwise provided in this chapter.
[(e)]
(c) The duties and powers granted to the corporation [or any
regional system board] may not be used to enter into contractual or
business relationships that have the practical effect of allowing or are
intended to allow private-sector counterparts to replace existing employee
positions or responsibilities within the corporation [or in any regional
system or its facilities; provided the corporation or regional system boards
shall be allowed to enter into such relationships to the extent and for the
purposes that the division of community hospitals could have done under
collective bargaining contracts that were in effect for the 1995-1996 fiscal
year]."
SECTION 9. Section 323F-7.6, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) A transition shall only occur upon approval of the [appropriate
regional system board in the case of a regional system or individual facility
transition, or upon approval of the regional system boards and the corporation
in the case of the transition of the entire] corporation. Any transition
shall be subject to legal review by the attorney general who shall approve the
transition if satisfied that the transition conforms to all applicable laws,
subject to the review of the director of the department of budget and finance
who shall approve the transition if it conforms to all applicable financing
procedures, and subject to the governor's approval. In addition the transition
shall be subject to the following terms and conditions:
(1) All proceeds from the sale, lease, or transfer of assets shall be used for health care services in the respective regional system or facility, except that real property shall only be transferred by lease;
(2) Any and all liabilities of a regional system or facility transitioning into a new entity that were transferred to the Hawaii health systems corporation upon its creation by Act 262, Session Laws of Hawaii 1996, and all liabilities of the regional system or facility related to collective bargaining contracts negotiated by the State, shall become the responsibility of the State; and
(3) During the period of transition:
(A) The State shall continue to fund the provision of health care services provided for by the regional system or individual facility; and
(B) All applicable provisions of this chapter shall continue to apply.
Upon the completion of the transition of all the facilities in a regional system to a new entity, the regional system board for that regional system shall terminate; provided that if not all of a regional system's facilities are transitioned to a new entity, the existing regional system board shall not terminate but shall continue to retain jurisdiction over those facilities remaining in the regional system."
SECTION 10. Section 323F-8, Hawaii Revised Statutes, is amended to read as follows:
"§323F-8 Chief executive officer; exempt positions. (a) The corporation board may appoint, by majority vote of its entire membership, a chief executive officer of the corporation whose salary shall be set by the corporation board and who shall be exempt from chapter 76 and section 26-35(a)(4). The chief executive officer may also appoint up to eighteen other personnel, exempt from chapters 76 and 89, to work directly for the chief executive officer and the corporate board.
(b) The corporation board or its designee may discharge its exempt personnel with or without cause; provided that removal without cause shall not prejudice any contract rights of personnel.
[The discharge of the chief executive
officer shall require a majority vote of the entire membership of the
corporation board.]
(c) The corporation's chief executive
officer or the chief executive officer's designee may appoint, exempt from
chapters 76 and 89, hospital administrators, assistant administrators,
directors of nursing, medical directors, and staff physicians, to facilitate
the management of facilities within the corporation[; provided that
directors of nursing appointed before July 1, 1998, may maintain their civil
service status as provided in chapter 76 by so communicating in writing to the
chief executive officer by October 31, 1998. Hospital administrators and
assistant administrators appointed before July 1, 1983, may maintain their
permanent civil service status as provided in chapter 76.
(d) Hiring, firing, compensation
packages, and other personnel actions with respect to employees not covered by
chapter 76 and 89 shall be governed by policies and guidelines established by
the corporation, except as otherwise provided in this chapter.
(e) Upon the establishment of a regional
system board, the authority to appoint regional hospital administrators,
assistant administrators, directors of nursing, medical directors, and staff
physicians under subsection (c) shall be superseded by section 323F-8.5 for
that regional system. No incumbent personnel shall lose a position without
specific action taken by the regional system board]."
SECTION 11. Section 323F-9, Hawaii Revised Statutes, is amended to read as follows:
"§323F-9 Hiring of attorneys. The corporation [and regional system
boards] may employ or retain any attorney, by contract or otherwise, for
the purpose of representing the corporation [or regional system boards]
in any litigation, rendering legal counsel, or drafting legal documents for the
corporation [or regional system boards]."
SECTION 12. Section 323F-10, Hawaii Revised Statutes, is amended to read as follows:
"§323F-10
Regional public health facility management advisory committees. (a) [On
the transfer date, there] There shall be established within the
corporation for each region, a public health facility management advisory
committee to consist of nine members initially to be appointed by the chief
executive officer of the corporation with the advice of the hospital
administrators of the facilities in the affected regions. The members shall
serve for a term of four years; provided that upon the initial appointment of
the members, two shall be appointed for a term of one year, two for a term of
two years, two for a term of three years, and three for a term of four years.
Following the initial appointments by the chief executive officer of the corporation board, any vacancies on a regional committee shall be filled by a simple majority vote of the members of the executive committee from a list of qualified nominees submitted by the regional committee in which the vacancy occurred. If a regional committee vacancy remains unfilled for more than thirty days, that vacancy may be filled by the chief executive officer of the corporation.
Each regional management advisory committee shall include medical and health care providers, consumers, and knowledgeable individuals in other appropriate areas such as business and law; provided that at least one member shall be a physician with active medical staff privileges at one of the region's public health facilities. At least three members of the committee shall be consumers.
The management advisory committee for the East Hawaii region shall have three members who reside in the Ka‘u district, three members who reside in the Hamakua/North Hilo districts, and three members who reside in the South Hilo/Puna districts. The management advisory committee for the West Hawaii region shall have not less than three members who reside in the North Kohala/South Kohala districts.
Each
regional committee shall select its own chairperson and vice chairperson and
shall adopt rules governing the terms for removal of its chairperson from the
executive management advisory committee. [In the event of] If a
regional committee [voting] votes to remove its chairperson who
concurrently sits on the corporation board, that vote shall be unanimous. [In
the event of] If a regional committee [voting] votes
to remove its physician member from the corporation board, that vote shall also
be unanimous. Each regional committee may also adopt other rules as it may
consider necessary for the conduct of its business.
The members of the regional committees shall serve without compensation, but shall be reimbursed for traveling expenses incurred in the performance of their duties. The corporation shall provide for the necessary expenses of the committees; provided that no expenses may be incurred without prior authorization by the chief executive officer.
(b) Each regional committee shall sit in an advisory capacity to the chief executive officer on matters concerning the formulation of regional operational and capital improvement budgets, and the planning, construction, improvement, maintenance, and operation of public health facilities within its respective jurisdiction and shall sit in an advisory capacity to the governor on matters concerning the nominees for positions on the corporation board. Nothing in this section shall be construed as precluding or preventing the committees from coordinating their efforts and activities with the facility administrators within their counties.
(c) Each regional committee may prepare a report for inclusion with the corporation's annual report and audit, which shall include but not be limited to comments and analyses on the corporation's regional operational and capital improvement budgets for its respective region.
[(d)
Upon the establishment of a regional system board for a regional system
pursuant to section 323F-3.5, this section shall no longer apply to that
regional system.]"
SECTION 13. Section 323F-10.5, Hawaii Revised Statutes, is amended to read as follows:
"§323F-10.5
Executive public health facility management advisory committee; establishment.
(a) There is established within the corporation an executive public health
facility management advisory committee to consist of the chairpersons of each
of the five regional public health facility management advisory committees.
The executive committee [shall], through its chairperson, shall represent
the interests of all regional committees on the corporation board.
(b) The executive committee shall select its own chairperson to serve on the corporation board and shall adopt rules governing the terms of office and removal from the corporation board. The executive committee shall also adopt rules governing the terms of office for each of the five regional committee chairpersons. The executive committee may also adopt other rules as it may consider necessary for the conduct of its business.
(c) The members of the executive committee shall serve without compensation, but shall be reimbursed for reasonable expenses incurred in the performance of their duties.
[(d)
Upon the establishment of a regional system board for a regional system
pursuant to section 323F-3.5, this section shall no longer apply to that
regional system.]"
SECTION 14. Section 323F-11, Hawaii Revised Statutes, is amended to read as follows:
"§323F-11 Executive branch;
noninterference. Notwithstanding
any other law to the contrary, the governor and executive branch agencies shall
limit their responsibilities to that of review and oversight when the
corporation [or regional system board] receives general funds from the
State to subsidize the operating budgets of deficit facilities. The governor
and executive branch agencies shall not interfere with the systemic change,
capacity building, advocacy, budget, personnel, system plan development, or
plan implementation activities of the corporation [or any regional system
board]. The governor and executive branch agencies shall not interfere
with the ability of the corporation [or regional system board] to
function as a multiple facility public hospital system delivering health care
services to the residents of the State."
SECTION 15. Section 323F-21, Hawaii Revised Statutes, is amended to read as follows:
"§323F-21
Fiscal provisions. (a) There is created in the state treasury a special
fund to be known as the health systems special fund, into which shall be
deposited all fees, proceeds, reimbursements, and the like owed to or received
by the corporation[, any regional system board,] and its facilities,
except as herein provided. [There shall be established within the special
fund regional subaccounts for each regional system board upon its
establishment.] The special fund [and the regional subaccounts]
shall be used solely to fulfill the purposes outlined in this chapter.
The
corporation [and each regional system board] may establish and maintain,
within the health systems special fund [or any regional subaccount], any
[other] accounts that [may be] are necessary [and
appropriate] to carry out its purposes and responsibilities.
[The
corporation and any regional system board may deposit moneys into trustee
accounts for the purposes of securing or issuing bonds.]
The
corporation [and regional system boards] may provide reasonable reserves
for any of the following purposes:
(1) Insurance deductibles;
(2) The improvement, replacement, or expansion of their facilities or services;
(3) The securing of the corporation's [or
regional system boards'] bonds, notes, or other instruments of
indebtedness; or
(4) Any other purpose the corporation [or
the regional system boards deem] deems necessary [or appropriate]
in the performance of their purposes and responsibilities.
(b)
The corporation board [and regional system boards] shall [collaboratively]
develop budgetary guidelines and annual operating and capital budgets for each
facility, taking into account anticipated surpluses from or subsidies to the
facilities pursuant to the annual guidelines described in this section,
accumulated corporation and regional reserves and accounts, subsidies, if any,
that are determined to be needed from the general fund, and other sources of
corporation-wide and regional income as may be identified. [Two-year
budgets will be approved for regional system boards, in alignment with State of
Hawaii biennium budgeting. The corporate board shall not alter the two-year budget
of a regional system except:
(1) Where state general funding is
reduced;
(2) An emergency exists; or
(3) There is a renegotiated budget
approved by a regional system board].
The corporation [and regional
system boards] shall [collaboratively] develop budgetary guidelines [and
negotiate with each facility], and may allocate to each facility
reasonable corporation administrative costs, including funds determined by the
corporation [or any regional system board] to be needed from or provided
to each facility to:
(1) Repay corporation [or regional system
board] debts;
(2) Provide subsidies to any facility determined to be unable to fund from within that facility's programs and services deemed essential to community needs; and
(3) Maintain appropriate reserves.
(c)
The corporation [and regional system boards] shall [collaboratively]
develop annual corporation operating and capital budgets, taking into account
anticipated surpluses from or subsidies to the facilities pursuant to the
annual guidelines described in this section, accumulated corporation [and
regional system board] reserves and accounts, subsidies, if any, that are
determined to be needed from the general fund, and other sources of
corporation-wide [and regional system board] income as may be
identified.
[(d)
Beginning with the first of the legislative biennium budget years following the
establishment of a regional system board, and for each biennium period
thereafter, the corporation shall call together all the regional systems
through representatives selected by each regional system board, and the chairs
of the facility management advisory committees, if any, to determine which
services and functions should be provided by the corporation for the next
biennium budget period, consistent with this chapter. As part of the biennium
budgeting process, the corporation board and the representatives of each
regional system, working through the corporation board regional
representatives, shall agree upon an allocation methodology for funding the agreed
upon and statutorily created corporate services and functions.
(e)] (d) The corporation may share in any facility's surplus
and may offset any facility's deficits as provided herein. [Any regional
system board shall share in the surplus of any facility within the regional
system and shall offset any facility deficits within its regional system.
Operating surpluses of the regional system board shall be reinvested in the
operations of that regional system in any prudent manner; provided that upon request,
and subject to authorization by the regional system board, the regional system
board may share its surplus or resources with a facility outside of the
regional system to benefit the corporation-wide system of health care.]
Obligations undertaken by a facility shall be paid only from funds of that
facility, unless the corporation board[, the regional system board managing
the facility, or an] or its authorized agent explicitly agrees to
guarantee the obligation. [Loans and other transfers may be made between
regional systems upon approval of the affected regional system boards to assist
in the cash flow and operations of the public health facilities.]
[(f)] (e) In accordance with each annual facility budget, and
subject to policies established by the corporation board [and by each
regional system board,] each facility of the corporation [and regional
system board, respectively,] shall:
(1) Bill and collect for its services;
(2) Maintain bank accounts; and
(3) Pay for needed personnel, supplies, equipment, and other operational and capital expenditures.
[(g)] (f) The corporation [and each regional system board],
subject to policies established by the corporation [and each regional system
board, respectively], may elect to manage its own capital improvement
project and funds, either directly or indirectly by contract; provided that
annual reports of the project moneys are provided to the governor and
legislature.
[(h)] (g) The corporation board [and regional system boards]
may hold public informational meetings on [their] its budgets.
Representatives of any county government, state government, or any other person
having an interest in the budget, shall have the right to be heard at the
meetings."
SECTION 16. Section 323F-22, Hawaii Revised Statutes, is amended to read as follows:
"§323F-22
Annual audit and report; disclosure of revenue projections[; internal
performance audit]. (a) The corporation shall engage a
certified public accountant to conduct an annual audit of its financial affairs,
books, and records in accordance with generally accepted accounting
principles. [The corporation, in consultation with a regional system board,
may permit or require a regional system board to retain an audit firm to
conduct an independent audit of the regional system. Each regional system
board shall submit the results of the annual audit to the corporation board
within one hundred twenty days after the close of the regional system board's
fiscal year.] The corporation shall submit to the governor and the
legislature, within one hundred fifty days after the close of the corporation's
fiscal year, a report that shall include the audited financial report for that
fiscal year for the corporation [and each regional system board].
(b)
In addition to the submittal of the audit required under subsection (a), the
corporation[, in cooperation with the regional system boards,] shall
submit a report to the legislature at least twenty days prior to the convening
of each regular session that shall include but not be limited to:
(1) The projected revenues for each health care facility;
(2) A list of all proposed capital improvement projects planned for implementation during the following fiscal year; and
(3) All reports submitted by regional public health facility management advisory committees pursuant to section 323F-10(c).
(c)
The regional [system boards] public health facility management
advisory committee shall prepare a report for inclusion with the
corporation's annual report and audit.
(d)
There shall be an annual internal audit of the management and operations of the
corporation [and regions]. The corporation[, in cooperation with the
regional system boards,] shall submit a report to the legislature at least
twenty days prior to the convening of each regular session on the results of
the annual internal audit of the management and operations of the corporation [and
regions]."
SECTION 17. Section 323F-23, Hawaii Revised Statutes, is amended to read as follows:
"§323F-23
Exemption from taxation. The corporation [and each regional system
board] shall be exempt from paying any:
(1) Assessments levied by any county; and
(2) State taxes of any kind."
SECTION 18. Section 323F-24, Hawaii Revised Statutes, is amended to read as follows:
"§323F-24 Budget oversight. The corporation's [and each regional
system board's] operating and capital improvement budgets shall not be
subject to review or approval by the governor or any state agency, except where
state general funds or capital improvement moneys are requested. If general
funds or capital improvement moneys are requested, then the corporation [or
any regional system board] shall include, with its request, the proposed
budget for which the funds or moneys are to be included. The corporation [and
regional system boards, once operational,] shall [collaboratively]
submit [their] its budgets annually to the legislature for review
and approval at least twenty days prior to the convening of the regular
legislative session[, beginning with the budgets for the 2010-2011 biennium
fiscal years]."
SECTION 19. Section 323F-25, Hawaii Revised Statutes, is amended to read as follows:
"[[]§323F-25[] Regional
system board; community] Community hospitals;
community health centers; collaboration. Each [regional system board
and each] community hospital under the jurisdiction of the corporation
shall collaborate with community health centers within their respective
geographic jurisdictions to maximize funding from the state and federal
governments to:
(1) Maximize reimbursement for health care services provided;
(2) Acquire funds for capital investment;
(3) Provide expanded hours of service; and
(4) Ensure the provision of the appropriate level of care to the community served by each community health center."
SECTION 20. Section 323F-31, Hawaii Revised Statutes, is amended to read as follows:
"§323F-31 Maintenance of services. (a) Prior to implementation, the corporation shall notify the legislature of any planned substantial expansion, reduction, or elimination of direct patient care services.
[(a)] (b) No [planned]
substantial reduction or elimination of direct patient care services at any
facility shall be undertaken [unless all of the following requirements are
met:
(1) An initial determination is made by
the regional chief executive officer as to critical and emergency services
which shall not be subject to reduction or elimination pursuant to this
section;
(2) The plan of the facility to
substantially reduce or eliminate any direct patient care services at the
health facility shall first be presented to the regional system board for its
approval;
(3) Subsequent to the requisite regional
system board approval, the regional chief executive officer shall present the
plan to the community in which the facility is located, at a community
informational meeting, in order to obtain community input on the plan; and
(4) Provided that if the regional system
board approves the plan, the plan as approved by the regional system board
shall be submitted to the corporation board for ratification.] by the corporation without the approval of the legislature.
[(b)
After the community informational meeting, but at least twenty days prior to
the implementation of the plan approved by the regional system board, the
regional system board shall give notice of implementation of the plan to the
governor, senate president, and the speaker of the house of representatives.
(c)
The decision of the regional system board shall be the final decision with
respect to the plan. Implementation of the plan shall commence and continue,
provided that no legislation is enacted that:
(1) Requires the reinstatement and
continuation of the direct patient care services that are subject to reduction
or elimination under the plan; and
(2) Includes an appropriation of
additional moneys sufficient to adequately fund the mandated reinstatement and
continuation of the subject direct patient care services.]
(c) The legislature shall maintain review and oversight authority over the provision of direct patient care services provided at each facility and may intervene to counter or restrict any substantial reduction or elimination of patient care services."
SECTION 21. Section 323F-3.5, Hawaii Revised Statutes, is repealed.
["§323F-3.5 Regional system boards. (a) There is hereby established a
regional system board of directors to govern each of the five regional systems
specified in section 323F‑2, no later than January 1, 2008. The regional
system boards of directors shall carry out the duties and responsibilities as
set forth in this chapter and as further delegated by the corporation.
(b)
Upon its establishment, a regional system board shall assume custodial care of
all financial assets, real property, including land, structures, and fixtures,
or other physical assets, such as personal property, including furnishings,
equipment, and inventory, of the corporation within its regional system. No
sale or encumbrance of any such real property or such other financial assets,
physical assets of the corporation shall be permitted without the mutual
consent of the Hawaii health systems corporation board and the appropriate
regional system board. No additional debts or liabilities or superior debts
shall be added by the corporation to any regional system board that would
negatively impact the holders of bond notes. Each regional system board shall
be liable for any liabilities arising from financial assets, real or personal
property in its custodial care.
(c)
Each regional system shall be governed by a regional system board of directors
to consist of not less than seven members and not more than fifteen members, as
determined by the regional system board after the initial regional system board
is established.
(1) Each
regional system board shall initially consist of twelve members to be appointed
by the governor under section 26-34 or as provided in this section, as follows:
(A) Four
members shall be appointed by the governor within thirty days of receipt of a
qualified list of candidates as follows:
(i) Two
members shall be chosen from a list of four individuals submitted by the
speaker of the house of representatives within fifteen days of July 1, 2007;
provided that this list shall not include physicians; and
(ii) Two
members shall be chosen from a list of four individuals submitted by the
president of the senate within fifteen days of July 1, 2007; provided that this
list shall not include physicians;
(B) Four
members shall be appointed by the governor within thirty days from a list of eight
individuals nominated by the regional public health facility management
advisory committee within fifteen days of July 1, 2007. These individuals may
be medical and health care providers and professionals, consumers, and
knowledgeable individuals in other appropriate areas such as business, finance,
and law; provided that these individuals shall not be physicians currently in
active practice;
(C) Three
physicians shall be appointed by the governor within thirty days from a list
submitted within fifteen days of July 1, 2007, of six physicians nominated by a
majority vote of the medical staff of the public health facilities in the
regional system present at a duly noticed meeting from a list of qualified
candidates submitted by the medical executive committees in the regional
system; and
(D) The
corporation board chairperson or chairperson's designee shall serve as an ex
officio, nonvoting member of each regional system board;
(2) One
member of each regional system board nominated by the speaker of the house of
representatives, the president of the senate, and medical executive committees
in a regional system shall be appointed for a term of two years;
(3) One
member of each initial regional system board nominated by the regional public
health facility management advisory committee for the regional system shall be
appointed for a term of two years;
(4) The
remaining members of each initial regional system board and all members
appointed thereafter shall be appointed for terms of three years; and
(5) New
regional system board members appointed to any regional system board after the
initial regional system board shall be selected by a two-thirds affirmative
vote of the existing regional system board members.
Except
for the ex officio members of each regional system board, all other members of
a regional system board shall be residents of the region. Each regional system
board shall elect its own chair.
(d)
Each regional system board shall:
(1) Be
responsible for local governance, operations, and administration of the
delivery of services in its respective regional system as set forth in this
chapter and as further delegated by the corporation;
(2) Include
medical and health care providers and professionals, consumers, and
knowledgeable individuals in other appropriate areas, such as business,
finance, and law; provided that no more than three members of the regional
system board shall be physicians;
(3) Be
as balanced and representative of the community stakeholders as possible; and
(4) Have the powers, duties, and responsibilities that are specific to
the regional system board as provided in this chapter.
(e)
Any member of a regional system board may be removed for cause by the governor
or for cause by vote of a two-thirds majority of the regional system board's
voting members then in office. For purposes of this section, "cause"
shall include without limitation:
(1) Malfeasance
in office;
(2) Persistent
failure to attend regularly called meetings;
(3) Sentencing
for conviction of a felony, to the extent allowed by section 831-3.1; or
(4) Any
other cause that may render a member incapable of discharging or unfit to
discharge the duties required under this chapter."]
SECTION 22. Section 323F-4.5, Hawaii Revised Statutes, is repealed.
["[§323F-4.5] Captive insurance board. (a) There is established a ten-member
captive insurance board that shall carry out the corporation's duties and
responsibilities relating to the establishment of any captive insurance company
pursuant to section [323F-7(c)(20)] and the operation thereof.
(b)
Eight members of the captive insurance board shall be appointed by the governor
as follows:
(1) Three
members from a list of five persons submitted by the president of the senate;
provided that at least one of these members shall have experience in the
insurance industry and financial matters;
(2) Three
members from a list of five persons submitted by the speaker of the house of
representatives; provided that at least one of these members shall have
experience in the insurance industry and financial matters; and
(3) Two
members, one of whom shall be the chief executive officer or chief financial
officer of an insurer licensed to do business in the State and shall serve as a
nonvoting member.
The
director of health or the director's designee and the insurance commissioner or
the commissioner's designee shall serve as ex officio, nonvoting members.
Any
vacancy shall be filled in the same manner provided for the original
appointments. The captive insurance board shall elect its own chair from among
its members.
(c)
The selection, appointment, and confirmation of any appointed nominee shall be
based on ensuring that captive insurance board members have diverse and
beneficial perspectives and experiences and that they include, to the extent
possible, representatives of the insurance and/or finance sectors. Members of
the captive insurance board shall serve without compensation but may be
reimbursed for actual expenses, including travel expenses incurred in the performance
of their duties.
(d)
Any appointed member of the captive insurance board may be removed for cause by
the governor or for cause by vote of a two-thirds majority of the captive
insurance board members then in office. For purposes of this section, cause
shall include without limitation:
(1) Malfeasance
in office;
(2) Failure
to attend regularly called meetings;
(3) Sentencing
for conviction of a felony, to the extent allowed by section 831-2; or
(4) Any
other cause that may render a member incapable or unfit to discharge the duties
required under this chapter.
Filing
nomination papers for elective office, appointment to elective office, or
conviction of a felony consistent with section 831-3.1, shall automatically and
immediately disqualify a board member from office.
(e)
No member of the captive insurance board shall be an employee or vendor of the
corporation, or an immediate family member thereof. For purposes of this
subsection, "immediate family member" means a corporation board
employee's or vendor's spouse, child, parent, grandparent, or any related
individual who resides in the same household of the employee or vendor.]"
SECTION 23. Section 323F-7.5, Hawaii Revised Statutes, is repealed.
["[§323F-7.5] Regional system boards; delegated authority.
If the Hawaii health systems corporation board is unable to act on important
transactions in as timely a manner as the chairperson of the corporation board
deems reasonable, the chairperson of the corporation board may further delegate
authority to the regional system boards to take action on specific matters."]
SECTION 24. Section 323F-8.5, Hawaii Revised Statutes, is repealed.
["§323F-8.5
Regional chief executive officer; exempt position. (a) Upon
establishment, a regional system board may appoint a regional chief executive
officer whose salary shall be set by the corresponding regional system board
and may discharge a regional chief executive officer; provided that the
position shall be exempt from chapter 76 and section 26-35(a)(4). Each
regional chief executive officer may also appoint, as necessary, other
personnel, exempt from chapters 76 and 89, to work directly for the regional
chief executive officer for the regional system and for the corresponding
regional system board.
(b) Any regional system
board or its designee may discharge its exempt personnel with or without cause;
provided that removal without cause shall not prejudice any contract rights of
personnel.
(c) Each regional chief
executive officer or their designees may appoint, exempt from chapters 76 and
89, hospital administrators, assistant administrators, directors of nursing,
medical directors, and staff physicians, to facilitate the management of
facilities within the regional system.
(d) Hiring, firing,
compensation packages, and other personnel actions with respect to employees
not covered by chapters 76 and 89 shall be governed by policies adopted by each
regional system board. These policies and guidelines shall be consistent with
policies and guidelines adopted by the corporation board after consultation
with the regional system boards."]
SECTION 25. The auditor shall conduct a comprehensive financial and management audit of the Hawaii health systems corporation, including an analysis of information technology operations, procurement practices, contract administration, cash collections, accounts receivable, and personnel management.
SECTION 26. The auditor shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2016.
SECTION 27. All rights, powers, functions, and duties of the Hawaii health systems corporation regional system boards are transferred to the Hawaii health systems corporation.
All employees who occupy civil service positions and whose functions are transferred to the Hawaii health systems corporation by this Act shall retain their civil service status, whether permanent or temporary. Employees shall be transferred without loss of salary, seniority (except as prescribed by applicable collective bargaining agreements), retention points, prior service credit, any vacation and sick leave credits previously earned, and other rights, benefits, and privileges, in accordance with state personnel laws and this Act; provided that the employees possess the minimum qualifications and public employment requirements for the class or position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.
Any employee who, prior to this Act, is exempt from civil service and is transferred as a consequence of this Act may retain the employee's exempt status, but shall not be appointed to a civil service position as a consequence of this Act. An exempt employee who is transferred by this Act shall not suffer any loss of prior service credit, vacation or sick leave credits previously earned, or other employee benefits or privileges as a consequence of this Act; provided that the employees possess legal and public employment requirements for the position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable employment and compensation laws. The board of directors of the Hawaii health systems corporation may prescribe the duties and qualifications of these employees and fix their salaries without regard to chapter 76, Hawaii Revised Statutes.
SECTION 28. All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the Hawaii health systems corporation regional system boards relating to the functions transferred to the Hawaii health systems corporation shall be transferred with the functions to which they relate.
SECTION 29. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 30. This Act shall take effect on July 1, 2015.
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Report Title:
HHSC; Regional System Boards
Description:
Repeals the regional system boards of the HHSC. Increases the size of the HHSC board and changes its composition.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
