Bill Text: HI SB3128 | 2024 | Regular Session | Amended
Bill Title: Relating To Act 212, Session Laws Of Hawaii 2021.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2024-04-25 - Conference committee meeting to reconvene on 04-26-24 3:10PM; Conference Room 329. [SB3128 Detail]
Download: Hawaii-2024-SB3128-Amended.html
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THE SENATE |
S.B. NO. |
3128 |
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THIRTY-SECOND LEGISLATURE, 2024 |
S.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO ACT 212, SESSION LAWS OF HAWAII 2021.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Act 212, Session Laws of Hawaii 2021, as amended by section 2 of Act 150, Session Laws of Hawaii 2022, is amended as follows:
1. By amending sections 2 and 3 to read:
"SECTION
2. [Section
323F-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read
as follows:
"(b) The corporate organization shall be divided
into four regional systems, as follows:
(1) The
Kauai regional health care system;
(2) The
Maui regional health care system;
(3) The
east Hawaii regional health care system, comprising the Puna district, north
Hilo district, south Hilo district, Hamakua district, and Kau district; and
(4) The
west Hawaii regional health care system, 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, and IV, respectively."] Repealed.
SECTION
3. [Section
323F-3, Hawaii Revised Statutes, is amended to read as follows:
"§323F-3
Corporation board. (a) The corporation shall be governed by a
fifteen-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 four 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) 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, and on the
island of Kauai 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; and the initial member
from the island of Kauai shall be appointed to serve a term of two 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.
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 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.
2. By amending sections 6 through 10 to read:
"SECTION
6. [(a) The budget of the Oahu regional health care
system shall be transferred from the Hawaii health systems corporation to the
department of health; provided that:
(1) The Oahu regional health care
system's budget codes and all related allocated funds of the Oahu region shall
be reflected in the state budget and all other related tables;
(2) The organizational structure of the
Oahu regional health care system shall remain unchanged, unless modified and
approved by the working group established pursuant to section 9 of this Act,
and as approved by the conditions established in this part or as required by
law; and
(3) During the
transition period, all] All
requests for operational funds necessary for the Oahu regional health care
system to maintain its operations at Leahi hospital and Maluhia shall be made
by the Oahu regional health care system and shall be submitted with budget
requests made by the Hawaii health systems corporation; provided further that,
when appropriated, funding for the Oahu regional health care system shall be
designated under HTH 215, the program ID assigned to the Oahu regional health
care system.
[(b) The transfer of positions and respective class specifications of
the Oahu region from the Hawaii health systems corporation's personnel system
to the department of health, as set forth in the transition documents submitted
by the working group established pursuant to section 9 of this Act no later
than twenty days prior to the convening of the regular sessions of 2022 and
2025, shall be completed no later than December 31, 2025; provided that:
(1) All employees of the Oahu region who
are employed as of December 31, 2025, shall be transferred to the department of health
before the transition of the Oahu regional health care system into the
department of health is complete;
(2) All employees of the Oahu region who
occupy civil service positions shall be transferred to the department of health
by this Act and retain their civil service status, whether permanent or
temporary, and shall maintain their respective functions as reflected in their
current position descriptions during the transition period; provided that any
changes determined necessary by the working group established pursuant to
section 9 of this Act shall follow standard union consultation process prior to
implementation;
(3) 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 employment laws;
(4) The personnel structure of the Oahu regional
health care system shall remain unchanged, unless modified and approved by the
working group and as approved by the conditions established pursuant to this
Act;
(5) Any employee who, prior to this Act,
is exempt from civil service or collective bargaining and is transferred as a
consequence of this Act shall be transferred without loss of salary and shall
not suffer any loss of prior service credit, contractual rights, vacation or
sick leave credits previously earned, or other employee benefits or privileges,
and, except in the instance of discipline, shall be entitled to remain employed
in the employee's current position for a period of no less than one year after
the transition of the Oahu regional health care system into the department of
health is complete;
(6) The wages, hours, and other
conditions of employment shall be negotiated or consulted, as applicable, with
the respective exclusive representative of the affected employees, in
accordance with chapter 89, Hawaii Revised Statutes; and
(7) The rights, benefits, and privileges
currently enjoyed by employees, including those rights, benefits, and
privileges under chapters 76, 78, 87A, 88, and 89, Hawaii Revised Statutes,
shall not be impaired or diminished as a result of these employees being
transitioned to the department of health pursuant to this Act. The transition to the department of health
shall not result in any break in service for the affected employees. The rights, benefits, and privileges
currently enjoyed by employees shall be maintained under their existing
collective bargaining or other agreements and any successor agreement.]
SECTION
7. [(a) The Oahu regional board shall, through the
Oahu regional board chair, facilitate the transition of the Oahu region into
the department of health as part of the working group established pursuant to
section 9 of this Act and effectuate the assignment of all contracts and
agreements in which the Oahu region is a party to the department of health.
(b) Notwithstanding any law to the contrary, the
terms of the following members of the board of directors of the Hawaii health
systems corporation shall expire on December 31, 2025:
(1) The regional chief executive officer
of the Oahu regional health care system; and
(2) The two board members residing on
the island of Oahu appointed pursuant to section 323F-3(b)(7), Hawaii Revised
Statutes.] Repealed.
SECTION
8. [(a) During the transition planning period
commencing on July 1, 2021, to and including the completion of the transition
of the Oahu regional health care system into the department of health no later
than December 31, 2025, the Oahu regional system board may:
(1) Develop and implement its own
policies, procedures, and rules necessary or appropriate to plan, operate,
manage, and control its facilities without regard to chapter 91, Hawaii Revised
Statutes;
(2) Enter into and perform any contract,
lease, cooperative agreement, partnership, or other transaction whatsoever that
may be necessary or appropriate in the performance of its purposes and
responsibilities, and on any terms the regional system board may deem
appropriate with either:
(A) Any agency or instrumentality of the
United States, or with any state, territory, possession, or 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;
(3) Conduct activities and enter into
business relationships the regional system board deems necessary or
appropriate, including but not limited to:
(A) Creating nonprofit corporations,
including but not limited to charitable fundraising foundations, to be
controlled wholly by the 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 agreements, with any
public or private entity; provided that any corporation, venture, or
relationship entered into under this subsection shall further the public
interest;
(4) Execute, in accordance with all
applicable bylaws, rules, and laws, all instruments necessary or appropriate in
the exercise of any powers of the regional system board;
(5) Make and alter regional system board
bylaws and rules for its organization and management without regard to chapter
91, Hawaii Revised Statutes;
(6) Enter into any contract or agreement
whatsoever, not inconsistent with the laws of the State, execute all
instruments, and do all things necessary or appropriate in the exercise of the
powers granted under chapter 323F, Hawaii Revised Statutes, including securing
the payment of bonds; provided that contracts or agreements executed by the
regional system board shall only encumber the regional subaccounts of the
regional system board;
(7) Own, purchase, lease, exchange, or
otherwise acquire property, whether real, personal, or mixed, tangible or
intangible, and any interest therein, in the name of the regional system board;
provided that the regional system board shall be subject to the requirements of
section 323F-3.5, Hawaii Revised Statutes;
(8) Contract for and accept any gifts,
grants, and loans of funds or 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, in compliance, subject to chapter 323F, Hawaii Revised
Statutes, with the terms and conditions thereof; provided that the regional
system board shall be responsible for contracting for and accepting any gifts,
grants, loans, property, or other aid if intended to exclusively benefit the
Oahu region public health facilities and operations;
(9) Provide health and medical services
to 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 regional system board or otherwise; provided that the
regional system board shall be responsible for conducting the activities under
this paragraph solely within the Oahu regional system;
(10) Approve medical staff bylaws, rules,
and medical staff appointments and reappointments for all public health
facilities of the 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
regional system board, and adopting and implementing reasonable rules, without
regard to chapter 91, Hawaii Revised Statutes, for the credentialing and peer
review of all persons and health professionals within the facility; provided that
the regional system board shall be the governing body responsible for all
medical staff organization, peer review, and credentialing activities to the
extent allowed by law;
(11) Enter into any agreement with the
State, including but not limited to contracts for the provision of goods,
services, and facilities for the support of the regional system board's
programs, and contracting for the provision of services to or on behalf of the
State;
(12) Develop 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
board shall enjoy the exemptions under section 103‑53(e) and chapter
103D, Hawaii Revised Statutes;
(13) Authorize, establish, and abolish
positions; and
(14) Employ or retain any attorney, by
contract or otherwise, for the purpose of representing the regional system
board in any litigation, rendering legal counsel, or drafting legal documents
for the regional system board.
(b) During the transition period commencing on
July 1, 2021, to and including the completion of the transition of the Oahu
regional health care system into the department of health no later than
December 31, 2025, the Oahu regional system board shall continue to
enjoy the same sovereign immunity available to the State.
(c) During the transition period commencing on
July 1, 2021, to and including the completion of the transition of the Oahu
regional health care system into the department of health no later than
December 31, 2025, the Oahu regional system board shall be exempt from
chapters 36, 37, 38, 40, 41D, 103D, 103F, part I of chapter 92, and section
102-2, Hawaii Revised Statutes.] Repealed.
SECTION
9. [(a) There is established a working group of the
Oahu regional health care system and department of health to develop, evaluate,
and implement any additional steps necessary to complete the transition of the
Oahu regional health care system into the department of health.
(b) The working group shall consist of the
following members:
(1) The director of health or the
director's designee, who shall serve as co-chair and who, along with the chair
of the Oahu regional system board or the chair's designee, shall have final
authority over transfer activities to be implemented by the working group;
(2) The chair of the Oahu regional
system board or the chair's designee, who shall serve as co‑chair and
who, along with the director of health or the director's designee, shall have
final authority over transfer activities to be implemented by the working
group;
(3) The chief executive officer of the
Oahu regional health care system or the chief executive officer's designee;
(4) One or more department of health
staff members as deemed necessary by the director of health or the director's
designee; and
(5) One or more Oahu regional health
care system staff members as deemed necessary by the chief executive officer of
the Oahu regional health care system or the chief executive officer's designee.
(c) In addition, the working group shall include
the following members who shall serve in a consultative capacity:
(1) One representative from the
behavioral health administration of the department of health;
(2) One representative from the
department of human resources development;
(3) One representative from the department
of accounting and general services;
(4) One representative from the
department of the attorney general;
(5) One representative from the
department of budget and finance;
(6) One representative from the office of
planning;
(7) The chair of the Hawaii health
systems corporation board or the chair's designee;
(8) One representative from the Hawaii
health systems corporation human resources department;
(9) One representative from the Hawaii
health systems corporation finance department;
(10) One representative from the state
procurement office;
(11) One representative from the Hawaii
Government Employees Association, who shall be invited to participate;
(12) One representative from the United
Public Workers, who shall be invited to participate;
(13) Community representatives as
recommended and invited by the co-chairs; and
(14) Others as recommended and invited by
the co-chairs.
(d) In carrying out its purpose, the working
group shall develop a comprehensive business plan and transfer framework to
govern and manage the additional steps necessary to complete the transfer of
the Oahu region into the department of health.
The comprehensive business plan and transfer framework shall include but
not be limited to the following:
(1) Preparation of a five-year pro forma
operating plan and budget for the continuing operations of Leahi hospital and
Maluhia;
(2) Preparation of a ten-year pro forma
capital improvement plan and budget for the continuing operations of Leahi
hospital and Maluhia;
(3) Identification and preparation of proposed
legislation to address any matters not covered by this Act that may be
necessary to complete the transfer of the Oahu regional health care system into
the department of health;
(4) Identification of all real property,
appropriations, records, equipment, machines, files, supplies, contracts,
books, papers, documents, maps, and other property made, used, acquired, or
held by the Oahu regional health care system to effectuate the transfer of the
same to the department of health;
(5) Identification of all debts and
other liabilities that will remain with the Hawaii health systems corporation
and the remaining debts and liabilities to be transferred to the department of
health;
(6) Identification of all contractual
arrangements and obligations of the Oahu regional health care system, including
but not limited to those related to personal service contracts, vendor
contracts, and capital improvement projects;
(7) Development and implementation of
any and all policies and procedures necessary to ensure that the facilities
within the Oahu regional health care system remain compliant with all federal,
state, and local laws and regulations; and
(8) Development and implementation of
procedures to extricate the Oahu regional health care system from system-wide
services secured or provided by the Hawaii health systems corporation or enable
the Oahu region to continue to utilize those services on a temporary or
permanent basis through interagency agreement.
(e) Members of the working group shall serve
without compensation but shall be reimbursed for reasonable expenses necessary
for the performance of their duties, including travel expenses. No member of the working group shall be
subject to chapter 84, Hawaii Revised Statutes, solely because of the member's
participation in the working group.
(f) The working group shall submit reports to the
legislature no later than twenty days prior to the convening of the regular
sessions of 2022 and 2025 that shall include the five-year pro forma operating
and budget plan, ten-year pro forma capital improvement plan, proposed
legislation to address any matters not covered by this Act that may be
necessary to complete the transfer of the Oahu regional health care system into
the department of health, and a timeline of major milestones necessary to
effectuate the transfer of personnel, assets, liabilities, and contracts
needed to complete the transfer pursuant to this Act. The reports shall also document the
completion of the transfer and dissolution of the Oahu regional health care
system.
(g) The working group shall be dissolved on
December 31, 2025,
or upon completion of the transition of the Oahu regional health care system
into the department of health, whichever is first.
(h) The working group may hold executive sessions
in compliance with the procedures set out in section 92-4, Hawaii Revised
Statutes, to discuss individually identifiable information that could affect
patient privacy or information that could identify prospective bidders.] Repealed."
3. By amending section 14 to read:
"SECTION
14. This Act shall take effect on July
1, 2021[; provided that part II of this Act shall take effect on December
31, 2025]."
PART II
SECTION 3. Section 323F-7.6, Hawaii Revised Statutes, is amended to read as follows:
"§323F-7.6 Transition of Hawaii health systems regional system or health facility to a new entity. (a) Notwithstanding any other law to the contrary, including but not limited to section 27-1 and chapter 171, any of the regional systems or individual facilities of the Hawaii health systems corporation is hereby authorized to transition into a new legal entity in any form recognized under the laws of the State, including but not limited to:
(1) A nonprofit corporation;
(2) A for-profit corporation;
(3) A municipal facility;
(4) A public benefit corporation;
[(5) A division or branch under a state
executive department;] or
[(6)] (5)
Any two or more of the entities in paragraphs (1) through [(5).]
(4).
A
transition shall occur through the sale, lease, or transfer of all or
substantially all of the assets of the facility or regional system, except for
real property, which shall only be transferred by lease[; provided that
under a transfer that is effectuated pursuant to paragraph (5), real property
shall transfer in its then-existing state, whether in lease, fee, or otherwise,
to the department of land and natural resources]. Any transition shall comply with chapter 323D.
(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; [provided that under a transfer that is effectuated
pursuant to subsection (a)(5), real property shall transfer in its
then-existing state, whether in lease, fee, or otherwise, to the department of
land and natural resources;]
(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 4. Chapter 321, part XLVI, Hawaii Revised Statutes, is repealed.
PART III
SECTION 5. The Oahu regional health care system and the department of health shall enter into an agreement regarding Oahu regional health care system taking care of low acuity patients in the department of health's custody by the end of 2024.
SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 7. This Act shall take effect on December 31, 2050.
Report Title:
HHSC; DOH; Oahu Regional Health Care System; Transfer; Repeal; Low Acuity Patients; Agreement
Description:
Repeals the requirement to transfer the Oahu Regional Health Care System from the Hawaii Health Systems Corporation to the Department of Health. Repeals certain changes to the Hawaii Revised Statutes that were made by Act 212, SLH 2021. Requires the Oahu Regional Health Care System to enter into an agreement with the Department of Health regarding Oahu Regional Health Care System taking care of low acuity patients in the Department's custody by the end of 2024. Effective 12/31/2050. (SD2)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
