STAND. COM. REP. NO. 1174

Honolulu, Hawaii

RE: H.B. No. 1282

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committees on Health and Commerce and Consumer Protection, to which was referred H.B. No. 1282, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE TRANSITION OF THE OAHU REGIONAL HEALTH CARE SYSTEM FROM THE HAWAII HEALTH SYSTEMS CORPORATION INTO THE DEPARTMENT OF HEALTH,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Commence the transfer of the Oahu Regional Health Care System in its entirety from the Hawaii Health Systems Corporation to the Department of Health, beginning with the transfer of the Oahu Regional Health Care System's budget;

(2) Enable the Oahu Regional Health Care System, Department of Health, Hawaii Health Systems Corporation, and other state agencies to implement the processes and transactions required to effectuate the completion of the transition;

(3) Require the Department of Health to consult with the University of Hawaii regarding services provided at Leahi Hospital and Maluhia, and allow University of Hawaii students to rotate through those facilities for training purposes;

(4) Authorize the Department of Health to pay rent to the University of Hawaii for the use of the Leahi Hospital property at a rate and on terms to be negotiated between the Department of Health and the University of Hawaii;

(5) Clarify the rights, powers, and exemptions held by the Oahu Regional Health Care System during the transition period and the rights, powers, and exemptions held by the Inpatient Services Division of the Department of Health following completion of the transfer of the Oahu Regional Health Care System;

(6) Appropriate monies from the mental health and substance abuse special fund to expand and operate programs at Leahi Hospital and Maluhia; and

(7) Authorize the issuance of general obligation bonds and appropriate the proceeds of the bonds for improvements at Leahi Hospital and Maluhia.

Your Committees received testimony in support of this measure from the Department of Health, Hawaii Health Systems Corporation, University of Hawai‘i System, and The Queen's Health System. Your Committees received comments on this measure from the Department of the Attorney General, State Procurement Office, and Hawaii Government Employees Association.

Your Committees recognize the testimony of the Hawaii Government Employees Association, that the measure, as written, would not accomplish one of its purposes to ensure that employees exempt from civil service maintain their position for at least one year after the transition. Therefore, your Committees have amended this measure by:

(1) Ensuring that employees who are exempt from civil service maintain their positions for at least one year after the transition, subject to certain conditions;

(2) Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

As affirmed by the records of votes of the members of your Committees on Health and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1282, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1282, H.D. 2, S.D. 1, and be referred to your Committees on Judiciary and Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Health and Commerce and Consumer Protection,

________________________________ ROSALYN H. BAKER, Chair

________________________________ JARRETT KEOHOKALOLE, Chair