Report Title:
Hospital & Med. Facilities Special Fund; Administrative Penalty; County or Regional Hospital Systems
Description:
Determines how moneys in the hospital and medical facilities special fund are expended. Limits amount to be spent on education. Returns amounts in excess of $ to general fund annually. Requires that fines for violations of the adult residential care home licensing law be deposited to the general fund. Allows establishment of county or regional hospital systems; requires report to 2003 legislature on any systems established; appropriates $49 million to Hawaii Health Systems Corporation to support start-up costs of separate systems. Authorizes issuance of general obligation bonds of $38 million for Maui Memorial Medical Center and $20 million for Hilo Medical Center. (SD1)
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2709 |
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TWENTY-FIRST LEGISLATURE, 2002 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to health.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
Part I.
SECTION 1. The legislature finds that certain neighbor island health facilities of the Hawaii health systems corporation, specifically Kula Hospital, Lanai Community Hospital, and Maui Memorial Hospital, have not benefitted from the flexibility and autonomy granted to the corporation in 1996. Thus, the legislature finds that it is necessary to grant separate autonomy for neighbor island health facilities and community hospitals.
The purpose of this Act is to allow the creation of separate county or regional health systems corporations. These corporations will have same rights, powers, functions, and duties of the Hawaii health systems corporation.
Nothing in this Act other than the provisions for legislative oversight over the budget and activities of the Hawaii Health System corporation shall be construed as a restriction or limitation upon any other powers that a county or regional health systems corporation might otherwise have under any other law of this State. This Act is cumulative to any such powers. This Act shall be construed to provide a complete, additional, and alternative method for doing the things authorized in other laws and shall be regarded as supplemental and additional to powers conferred by other laws. It is also the intent of the legislature that all of the activities and services of the Hawaii health systems corporation be continued without interruption by any county or regional health systems corporation so established by this Act, except to the extent necessary to establish a county or regional health system.
SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:
"CHAPTERCOUNTY OR REGIONAL HEALTH SYSTEMS CORPORATIONPART I. GENERAL PROVISIONS
§ -1 Definitions. As used in this chapter, unless the context otherwise requires:
"Consumer" means any individual who may utilize a county or regional health systems facility for health services and is not a provider.
"Corporation" means the body corporate and politic formed under sections -2 and -3.
"Corporation board" means the board of directors of the corporation.
"Health systems assets" means all property or rights in property, real, personal and mixed, tangible or intangible, existing on June 30, 2002, used by or accruing to the Hawaii health systems corporation in the normal course of its operations.
"Health systems liabilities" means, without limitation, all debts or other obligations, contingent or certain, owing on June 30, 2002, by the Hawaii health systems corporation in the normal course of its operations.
"Health systems facility" means any one of the hospital facilities placed in the corporation.
"Provider" means any supplier of medical or health care goods and services of the type provided at a county or regional health systems facility.
§ -2 County or regional health systems corporation; transfer of health systems assets and health systems liabilities. (a) Each county or more than one county may form a county or regional health systems corporation as provided in this chapter.
(b) The corporate organization shall consist of those health system facilities determined to be appropriate by the county or counties in forming the county or regional health system corporation.
(c) All health systems assets and health systems liabilities of the Hawaii health systems corporation, with respect to any county or regional health system formed by a county or counties shall be transferred to the county or regional health systems corporation not later than months after the formation of the corporation.
§ -3 Corporation board. (a) The corporation shall be governed by a nine-member board of directors, which shall carry out the duties and responsibilities of the corporation.
(b) Corporation board members shall be appointed by the appropriate mayor, subject to confirmation by the appropriate county council, from lists of nominees selected by the respective county public health facility management advisory committee. Corporation board members shall include medical and health care providers, consumers, and knowledgeable individuals in other appropriate areas such as business and law; provided that:
(1) At least one member shall be a physician with active medical staff privileges at one of the health systems facilities; and
(2) At least three members shall be consumers; and
Members shall serve for a term of three years; provided that of the members initially appointed, two members shall serve for one year and three members shall serve for 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.
(c) Members 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 corporation board may be removed for cause by the appropriate mayor 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 corporation board member from office.
§ -4 Corporation board meetings. (a) The corporation board shall meet no fewer than four times a year. All meetings of the corporation board shall be subject to chapter 92, except that in addition to matters exempted pursuant to law, the corporation board may elect to hold an executive meeting for the consideration of any matters set forth in section -6.
(b) All business of the corporation 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. Any action of the corporation 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 members of the corporation board then in office shall be required for any of the following actions:
(1) Removal by the corporation board of one of its members;
(2) Amendment by the corporation board of its bylaws;
(3) Hiring or removing the chief executive officer of the corporation; and
(4) Any other actions as provided by the corporation bylaws.
§ -5 Disclosure of interests. All corporation board members and employees of the corporation shall be subject to chapter 84.
§ -6 Records. The corporation shall be subject to the requirements of chapter 92F, except that the following categories of government records shall not be required to be disclosed:
(1) Applications for credentials or staff privileges at any of the corporation's medical facilities, records from peer review proceedings, and medical records; and
(2) Marketing strategies, strategic plans, evaluations, assessments, negotiations, or rates and charges, the disclosure of which would raise the cost of procurement or give a manifestly unfair advantage to any competitor or to any person or entity seeking to do business or proposing to enter into an agreement with the corporation or any of its facilities.
Any person denied access to these government records shall have available the remedies specified in sections 92F-15 and 92F-15.5. Government records protected from disclosure by this section shall be subject to the interagency disclosure provisions of section 92F-19. Section 624-25.5 shall apply to this part notwithstanding anything to the contrary contained in this section.
§ -7 Duties and powers of the corporation. Notwithstanding any other law to the contrary, the corporation shall have and exercise the following duties and powers:
(1) Developing its own policies, procedures, and rules necessary or appropriate to plan, operate, manage, and control the system of county or regional health facilities and services without regard to chapter 91;
(2) Evaluating the need for county or regional health facilities and services;
(3) Entering into and performing any contracts, leases, cooperative agreements, or other transactions whatsoever that may be necessary or appropriate in the performance of its purposes and responsibilities, and on terms it 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, or corporation, whether operated on a for profit or not for profit basis;
provided that the transaction furthers the public interest;
(4) Conducting activities and entering into business relationships as the corporation board deems necessary or appropriate, including but not limited to:
(A) Creating nonprofit corporations, including charitable fund-raising foundations, to be controlled wholly by the corporation 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:
(i) Any corporation, venture, or relationship entered into under this section furthers the public interest; and
(ii) This paragraph shall not be construed to authorize the corporation to abrogate any responsibility or obligation under paragraph (15);
(5) Participating in and developing prepaid health care service and insurance programs and other alternative health care delivery programs for the county or regional health facilities, including programs involving the acceptance of capitated payments or premiums that include the assumption of financial and actuarial risk;
(6) Executing, in accordance with all applicable bylaws, rules, and laws, all instruments necessary or appropriate in the exercise of any of the corporation's powers;
(7) Preparing and executing all corporation budgets, policies, and procedures;
(8) Setting rates and charges for all services provided by the corporation through the county or regional health facilities without regard to the public notice and public hearing requirements of chapter 91;
(9) Developing a corporation-wide hospital personnel system that is subject to chapters 76 and 89;
(10) Developing the corporation's capital and strategic plans;
(11) Suing and being sued; provided that the corporation shall enjoy the same sovereign immunity available to the State;
(12) Making and altering corporation board bylaws for its organization and management without regard to the public notice and public hearing requirements of chapter 91;
(13) Adopting rules, without regard to the public notice and public hearing requirements of chapter 91, governing the exercise of its 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 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;
(15) Issuing revenue bonds subject to the approval of the appropriate county council;
(16) Reimbursing the appropriate county general fund for debt service on general obligation bonds or reimbursable general obligation bonds issued by the appropriate county for the purposes of the corporation;
(17) Pledging or assigning all or any part of the receipts and revenues of the corporation for purposes of meeting bond or health systems liabilities;
(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 property is not owned or controlled by the State or a county, but is owned or controlled by the corporation;
(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; provided that the corporation legally holds or controls the property in its own name; and provided further that the corporation shall not sell, assign, lease, hypothecate, mortgage, pledge, give, or dispose of a substantial portion of its property of any nature;
(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;
(21) Acquiring by condemnation any real property required by the corporation to carry out the powers granted by this chapter;
(22) Depositing any moneys of the corporation 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;
(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 county agency, or any other source, or any combination thereof, and complying, subject to this chapter, with the terms and conditions thereof;
(24) Providing health and medical services for the public in the various counties directly or by agreement or lease with any person, firm, private or public corporation or association through or in the county or regional health facilities or otherwise;
(25) Approving medical staff bylaws, rules, and medical staff appointments and reappointments for all county or regional health facilities, including without limitation, determining the conditions under which a health professional may be extended the privilege of practicing within a county or regional health facility, and adopting and implementing reasonable rules, without regard to the public notice and public hearing requirements of chapter 91, for the credentialing and peer review of all persons and health professionals within the facility;
(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; provided the investment assists the corporation 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 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 and may issue indemnity bonds or may pledge securities as may be required by the corporation board.
(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 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 moneys, may be secured in the same manner as moneys of the corporation, and all banks and trust companies are authorized to give security for the deposits;
(27) Entering into any agreement with a county, including contracts for the provision of goods, services, and facilities in support of the corporation's programs, and contracting for the provision of services to or on behalf of appropriate county;
(28) Having a seal and altering the same at pleasure;
(29) Waiving, by means that the corporation deems appropriate, the exemption from federal income taxation of interest on the corporation's 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, but not subject to chapter 103D. However, where possible, the corporation is encouraged to use the provisions of chapter 103D; provided that the use of one or more provisions of chapter 103D shall not constitute a waiver of the exemption from chapter 103D and shall not subject the corporation to any other provision of chapter 103D;
(31) Calling upon a corporation counsel or county attorney for any legal services that the corporation may require; and
(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.
§ -8 Chief executive officer; exempt positions. (a) The corporation board may appoint, exempt from civil service, a chief executive officer of the corporation whose salary shall be set by the corporation board. The chief executive officer may also appoint up to five 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.
§ -9 Hiring of attorneys. The corporation may employ or retain any attorney, by contract or otherwise, for the purpose of representing the corporation in any litigation, rendering legal counsel to the corporation, or drafting legal documents for the corporation.
§ -10 County or regional public health facility management advisory committee. (a) There shall be established within the corporation, a public health facility management advisory committee to consist of nine members to be appointed by the chief executive officer of the corporation with the advice of the hospital administrators of the county or regional health facilities. Members shall serve for a term of three years. The 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 committee shall select its own chairperson and vice chairperson and may adopt rules that it may consider necessary for the conduct of its business.
(b) Members of the committee shall serve without compensation, but may 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.
(c) The committee shall advise the chief executive officer on matters concerning the formulation of operational and capital improvement budgets, and the planning, construction, improvement, maintenance, and operation of the county or regional health facilities. The committee shall select nominees for appointment to the corporation board by the governor pursuant to section -3. Nothing in this section shall be construed as precluding or preventing the committee from coordinating its efforts and activities with the facility administrators in the county or regional health systems corporation.
(d) The 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 operational and capital improvement budgets.
PART II. BUDGET AND FINANCE
§ -21 Fiscal provisions. (a) The county or regional health system may create a special fund into which shall be deposited all general revenues appropriated by a county to support the county or regional health systems corporations. The special fund shall be used solely to fulfill the purposes outlined in this chapter.
The corporation may establish and maintain within its special fund, accounts that may be necessary and appropriate to carry out its purposes and responsibilities.
The corporation may provide reasonable reserves for any of the following purposes:
(1) Insurance deductibles;
(2) The improvement, replacement, or expansion of its facilities or services;
(3) The securing of the corporation's bonds, notes, or other instruments of indebtedness; or
(4) Any other purpose it deems necessary or appropriate in the performance of its purposes and responsibilities.
(b) The corporation board shall develop annual operating and capital budgets for each county or regional health facility. The corporation shall develop budgetary guidelines, and may allocate to each facility reasonable corporation administrative costs, including funds determined by the corporation to be needed from or provided to each facility to:
(1) Repay corporation 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 shall 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 reserves and accounts, subsidies, if any, that are determined to be needed from the general fund, and other sources of corporation-wide income as may be identified.
(d) The corporation may share in any facility's surplus and may offset any facility's deficits. Obligations undertaken by a facility shall be paid only from funds of that facility, unless the corporation board or its authorized agent explicitly agrees to guarantee the obligation.
(e) In accordance with each annual facility budget, each facility of the corporation 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.
(f) The corporation 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 appropriate mayor and council.
(g) The corporation board may hold public informational meetings on its budget. Representatives of a county government or any other person having an interest in the budget shall have the right to be heard at the meetings.
§ -22 Annual audit and report; disclosure of revenue projections. (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 shall submit to the appropriate mayor and council 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.
(b) In addition to the submittal of the audit required under subsection (a), the corporation shall submit a report to the appropriate council each year that shall include:
(1) The projected revenues for each county or regional health facility;
(2) A list of all proposed capital improvement projects planned for implementation during the following fiscal year; and
(3) All reports submitted by the county or regional public health facility management advisory committee pursuant to section -10(d).
§ -23 Exemption from taxation. The corporation shall not be required to pay assessments levied by any county, nor shall the corporation be required to pay state taxes of any kind.
§ -24 Budget oversight. The corporation's operating and capital improvement budgets shall not be subject to review or approval by the appropriate mayor or any county agency, except where county general funds or capital improvement moneys are requested. If general funds or capital improvement moneys are requested, then the corporation shall include with its request, the proposed budget for which the funds or moneys are to be included. The corporation shall submit its budgets annually to the appropriate council for review and approval beginning with the budget for fiscal year .
PART III. OTHER PROVISIONS
§ -31 Maintenance of services. (a) The corporation shall notify the appropriate county council of any planned substantial reduction or elimination of direct patient care services.
(b) No substantial reduction or elimination of direct patient care services at any county or regional health facility shall be undertaken by the corporation without the approval of the appropriate council.
(c) The appropriate council shall maintain review and oversight authority over the provision of direct patient care services provided at each county or regional health facility and may intervene to counter or restrict any substantial reduction or elimination of patient care services."
SECTION 3. Chapter 46, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:
"§46- Employees of the county or regional health systems corporation. It is the intent of the legislature that the personnel of the county or regional health systems corporation shall constitute a separately administered part of the system of personnel administration established by this chapter or ordinance, unless specifically exempted by this chapter or any other law; provided that:
(1) The county or regional health systems corporation shall have a status coequal with the executive branch of the appropriate county for purposes of:
(A) Developing a position classification plan;
(B) Formulating personnel rules; and
(C) Administering the county or regional health systems corporation personnel system, including classification, reclassification, allocation, and reallocation of a particular position; the publication of a vacancy announcement; the examination of applicants; and the preparation of eligible lists;
(2) In the development of a position classification plan, the formulation of personnel rules, and the administration of the county or regional health systems corporation personnel system, the corporation chief executive officer or designee shall consult with the appropriate county director of human resources development;
(3) Any action of the corporation chief executive officer or designee including:
(A) The classification, reclassification, allocation, and reallocation of a particular position;
(B) The publication of a vacancy announcement;
(C) The examination of applicants;
(D) The preparation of an eligible list; and
(E) Appeals from suspensions, dismissals, and demotions not covered by collective bargaining;
may be appealed by any person, employee, or the exclusive bargaining unit representative to the county or regional health systems corporation personnel appeals board. The board shall be composed of three members, one representative from the county department of human resources development, one representative of the county or regional health systems corporation, and one appropriate exclusive bargaining unit representative. The board shall sit as an appellate body on matters within the jurisdiction of the county or regional health systems corporation with equal authority as a county civil service commission; and
(4) Nothing in this chapter or ordinance shall be construed to require the approval of the appropriate mayor or any county executive agency for the county or regional health systems corporation to establish such positions in the corporation as may be authorized and funded by the council.
§46- Civil service for the county or regional health systems corporation. (a) There shall be a civil service system for the county or regional health systems corporation.
(b) All of the powers and duties assigned to the county director of human resources development, with respect to the county or regional health systems corporation, shall be exercised by the county or regional health systems corporation chief executive officer's designee."
SECTION 4. It is the intent of this Act that all rights, powers, functions, assets, and operations of the Hawaii health systems corporation, with respect only to any hospital, including the facilities themselves, be conveyed to a county or regional health systems corporation established pursuant to chapter , Hawaii Revised Statutes, such that all of the activities and services of the hospital be continued without interruption by the county or regional health systems corporation. This Act shall be construed with this intent.
Pursuant to section -2(c) of section 2 of this Act:
(1) All rights, powers, functions, and duties of the Hawaii health systems corporation, with respect to any county hospital, are transferred to the appropriate county or regional health systems corporation.
(2) The assets, including but not limited to hospital funds relating to any county hospital, and the facilities themselves, shall be conveyed to the appropriate county or regional health systems corporation in its own name by the Hawaii health systems corporation.
(3) The county or regional health systems corporation shall assume the responsibility of the Hawaii health systems corporation, any county hospital contracts, agreements, and leases for commodities, services, property, and supplies utilized by the Hawaii health systems corporation, all of which shall be transferred to the appropriate county or regional health systems corporation including real property leases.
(4) All officers and employees whose functions are transferred by this Act shall be transferred with their functions and shall continue to perform their regular duties upon their transfer, subject to the state personnel laws and this Act.
No officer or employee of the State having tenure shall suffer any loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefit or privilege as a consequence of this Act, and such officer or employee may be transferred or appointed to a county civil service position without the necessity of examination; provided that the officer or employee possesses the minimum qualifications for the position to which transferred or appointed; and provided that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.
An officer or employee of the State who does not have tenure and who may be transferred or appointed to a civil service position as a consequence of this Act, shall become a county civil service employee without the loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefits or privileges and without the necessity of examination; provided that such officer or employee possesses the minimum qualifications for the position to which transferred or appointed.
If an office or position held by an officer or employee having tenure is abolished, the officer or employee shall not thereby be separated from public employment, but shall remain in the employment of the executive branch of the State with the same pay and classification and shall be transferred to some other office or position for which the officer or employee is eligible under the personnel laws of the State, provided that minimum qualifications are met.
Any officer or employee transferred to the county or regional health systems corporation pursuant to this section who is a member of or benefits under any existing pension or retirement fund or system shall continue to have all rights, privileges, obligations, and status with respect to such fund or system as are now prescribed by law, but during the period of employment by the county or regional health systems corporation, all contributions to such funds or system to be paid by the employer on account of such officer or employee shall be paid by the county or regional health systems corporation.
(5) 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 relating to the functions transferred to a county or regional health systems corporation shall be transferred with the functions to which they relate.
SECTION 5. (a) The county or regional health systems corporation, in carrying out its duties and responsibilities, may enter into appropriate agreements with the Hawaii health systems corporation, if necessary, to utilize county health facilities and real property under the control of the Hawaii health systems corporation. Each agreement shall require compensation of a nominal amount for the use of any facilities or real property. Until the agreements are finalized, the county or regional health systems corporation shall be entitled to use the facilities and real property of the Hawaii health systems corporation, with respect to any county hospital, for hospital and health care purposes.
(b) State agencies shall continue to provide to the county or regional health systems corporation, without charge, until the county or regional health systems corporation enters into a written contract with county agencies or chooses to terminate the services, services that the state agencies provided to the Hawaii health systems corporation.
(c) The county or regional health systems corporation shall assume and honor all collective bargaining agreements applicable to employees of the Hawaii health systems corporation, with respect to any county hospital. Upon expiration of those agreements, the county or regional health systems corporation, as appropriate and allowable, may negotiate collective bargaining agreements or sub-agreements under chapter 89, Hawaii Revised Statutes, to address its needs for efficiency and effectiveness.
(d) The county or regional health systems corporation shall assume and honor all responsibilities and obligations transferred to it from the Hawaii health systems corporation, with respect to any county hospital, regarding the imposition of rates, rents, fees, and charges for the use of public health facilities pursuant to section 323-70, Hawaii Revised Statutes. In no way shall this Act be construed as allowing either the county or regional health systems corporation or the Hawaii health systems corporation to abrogate these responsibilities and obligations.
SECTION 6. The Hawaii health systems corporation shall report to the legislature no later than twenty days prior to the convening of the regular session of 2003 on the establishment of any county or regional health systems corporations.
Part II.
SECTION 7. 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(6) only.
(b) The corporate organization shall be divided into five regions, as follows:
(1) The city and county of Honolulu;
(2) The county of Kauai;
(3) The county of Maui, except the county of Kalawao;
(4) The 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 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 regions I, II, III, IV and V, respectively.
(c) Pursuant to chapter , upon the formation of a county or regional health system corporation, any hospital within a county or regional health system corporation shall not be considered a health facility within the corporation and this chapter shall not apply to these county or regional health system facilities."
SECTION 8. All acts passed prior to or during this Regular Session of 2002, whether enacted before or after the passage of this Act shall be interpreted to conform to this Act, unless the acts specifically provide that this Act is being amended. In so far as this chapter is inconsistent with the provisions of any other law, this chapter shall be controlling.
SECTION 9. There is appropriated out of the general revenues of the State of Hawaii the sum of $49,000,000, or so much thereof as may be necessary for fiscal year 2002-2003, for start-up costs of any county or regional health system corporation established pursuant to this Act. The sum appropriated shall be expended by the Hawaii health systems corporation for the purposes of this Act.
Part III.
SECTION 10. Section 321-1.4, Hawaii Revised Statutes, is amended to read as follows:
"[[]§321-1.4[]] Hospital and medical facilities special fund; deposits; expenditures. (a) There is established within the department of health, to be administered by the department of health, the hospital and medical facilities special fund into which shall be deposited all moneys collected under section 321-11.5(b).
(b) Moneys in the special fund shall be expended by the department to assist in offsetting educational program expenses of the department's hospital and medical facilities branch. Moneys in the fund shall be expended by the department for the purpose of enhancing the capacity of hospital and medical facilities programs to:
(1) Improve public outreach efforts and consultations to industries regulated; and
(2) Educate the public, staff, and industries regulated.
Not more than $ of the fund may be utilized during any fiscal year for education.
(c) Any amount in the fund in excess of $ on June 30 of each year shall be deposited into the general fund.
(d) The department of health shall submit a report to the legislature concerning the status of the hospital and medical facilities special fund, including the amount of moneys deposited into and expended from the fund, and the sources of receipts and uses of expenditures, no later than twenty days prior to the convening of each regular session."
SECTION 11. Section 321-15.6, Hawaii Revised Statutes, is amended to read as follows:
"§321-15.6 Adult residential care homes; licensing. (a) All adult residential care homes shall be licensed to ensure the health, safety, and welfare of the individuals placed therein.
(b) The director shall adopt rules regarding adult residential care homes in accordance with chapter 91 which shall be designed to:
(1) Protect the health, safety, and civil rights of persons residing in facilities regulated;
(2) Provide for the licensing of adult residential care homes; provided that the rules shall allow group living in two categories of adult residential care homes as licensed by the department of health:
(A) Type I allowing group living by five or fewer unrelated persons; and
(B) Type II allowing six or more persons including but not limited to the mentally ill, elders, the handicapped, the developmentally disabled, or totally disabled persons who are not related to the home operator or facility staff.
For purposes of this section:
"Mentally ill person" means a mentally ill person as defined under section 334-1.
"Elder" means an elder as defined under sections 201G-1 and 201G-151.
"Handicapped person" means an individual with a physical handicap as defined under section 515-2.
"Developmentally disabled person" means a person with developmental disabilities as defined under section 333F-1.
"Totally disabled person" means a person totally disabled as defined under section 235-1;
(3) Comply with applicable federal laws and regulations of Title XVI of the Social Security Act, as amended; and
(4) Provide penalties for the failure to comply with any rule.
(c) The department may provide for the training of and consultations with operators and staff of any facility licensed under this section, in conjunction with any licensing thereof, and shall adopt rules to ensure that adult residential care home operators shall have the needed skills to provide proper care and supervision in a home environment as required under department rules.
(d) The department shall establish a standard admission policy and procedure which shall require the provision of information that includes the appropriate medical and personal history of the patient as well as the level of care needed by the patient prior to the patient's referral and admission to any adult residential care home facility. The department shall develop appropriate forms and patient summaries for this purpose.
(e) The department shall maintain an inventory of all facilities licensed under this section and shall maintain a current inventory of vacancies therein to facilitate the placement of individuals in such facilities.
(f) The department shall develop and adopt a social model of health care to ensure the health, safety, and welfare of individuals placed in adult residential care homes. The model of care shall be designed to protect the health, safety, civil rights, and rights of choice of the persons to reside in a nursing facility or in home-or community-based care.
(g) Any fines collected by the department for violations of this section shall be deposited into the general fund."
Part IV.
SECTION 12. The director of finance is authorized to issue general obligation bonds in the sum of $38,000,000, or so much thereof as may be necessary, and the same sum, or so much thereof as may be necessary, is appropriated for fiscal year 2002-2003 for the purpose of improvements to Maui Memorial Medical Center.
The sum appropriated shall be expended by the Hawaii health systems corporation for the purposes of this Act.
SECTION 13. The director of finance is authorized to issue general obligation bonds in the sum of $20,000,000, or so much thereof as may be necessary, and the same sum, or so much thereof as may be necessary, is appropriated for fiscal year 2002-2003 for the purpose of improvements to Hilo Medical Center.
The sum appropriated shall be expended by the Hawaii health systems corporation for the purposes of this Act.
Part V.
SECTION 14. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 15. This Act shall take effect on July 1, 2002.