STAND. COM. REP. NO. 765

Honolulu, Hawaii

RE:    S.B. No. 952

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 952, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO KAHUKU HOSPITAL,"

begs leave to report as follows:

     The purpose of this measure is to enable Kahuku Hospital to remain in operation and continue to serve the residents and visitors of the north shore of Oahu.

     Specifically, this measure authorizes the Hawaii Health Systems Corporation to acquire Kahuku Hospital.  Under this measure:

(1)  None of the liabilities of Kahuku Hospital will become liabilities of the Hawaii Health Systems Corporation;

(2)  The Hawaii Health Systems Corporation, at its discretion, may retain any or all medical and nonmedical employees of Kahuku Hospital and may adjust the levels of services provided by Kahuku hospital; and

(3)  Kahuku hospital shall be exempt from the public agency meetings and records law, the concessions on public property law, and the law requiring tax clearances for contractors.

This measure also makes appropriation of an unspecified amount.

     Your Committee received comments in support of this measure from the Oahu Regional CEO of the Hawaii Health Systems Corporation, Healthcare Association of Hawaii, UPW, Hawaii Reserves, Inc., and twenty-nine individuals.  The Department of Health and the Office of Information Practices offered comments.

     Your Committee finds that this measure will enable Kahuku Hospital to continue its operations; preserve its hospital license; retain its certificate of need and critical access hospital designation; reorganize; and settle its debts.

     Upon further consideration, your Committee has amended this measure by:

(1)  Adding a subsection (f) to the new section 323F‑   , Hawaii Revised Statutes, to exempt the purchases of goods and services by, or on behalf of, Kahuku hospital (chapter 103D, Hawaii Revised Statutes);

(2)  Clarifying that Kahuku Hospital is exempt from only part I of chapter 92, Hawaii Revised Statutes, relating to meetings, and not from the entire chapter; and

(3)  Making technical nonsubstantive amendments for the purposes of clarity and style.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 952, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 952, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair