STAND. COM. REP. NO. 602-22

Honolulu, Hawaii

, 2022

RE: H.B. No. 1893

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1893, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE OAHU REGIONAL HEALTH CARE SYSTEM,"

begs leave to report as follows:

The purpose of this measure is to transfer the Daniel K. Akaka State Veterans Home to the Oahu Regional Health Care System so that when the Oahu Regional Health Care System is transferred from the Hawaii Health Systems Corporation to the Department of Health, pursuant to Act 212, Session Laws of Hawaii 2021, the Daniel K. Akaka State Veterans Home will become part of the Department of Health.

Your Committee received testimony in support of this measure from the Department of Accounting and General Services, Department of Defense, State Office of Veterans Services, and three individuals. Your Committee received comments on this measure from the Department of Health; Department of Budget and Finance; Office of Information Practices; Hawaii Health Systems Corporation, Board of Directors; Hawaii Health Systems Corporation, Oahu Region; and Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO.

Your Committee finds that the Daniel K. Akaka State Veterans Home is currently under construction in Kapolei with an expected completion date of spring 2023. State veterans homes are facilities that provide long-term care for veterans, their spouses, and gold-star parents. Additionally, state veterans homes are funded primarily through the United States Department of Veterans Affairs and Medicare or Medicaid funds.

Your Committee further finds that the Department of Defense lacks the medical expertise for continued operational oversight of the long-term care facility. Furthermore, the Department of Defense, unlike the Hawaii Health Systems Corporation, lacks the statutory authority to create 501(c)(3) tax-exempt structures to assist in the administration of the long-term care facility.

Your Committee finds that, pursuant to Act 212, Session Laws of Hawaii 2021 (Act 212), the Oahu Regional Health Care System facilities will be transferred to the Department of Health by December 31, 2022. This measure will transfer the Daniel K. Akaka State Veterans Home to the Oahu Regional Health Care System with the intent that it transfer to the Department of Health once the Oahu Regional Health Care System facilities are transferred pursuant to Act 212.

Should this measure continue through the legislative process, your Committee respectfully requests that further consideration be given to whether the employees of the Daniel K. Akaka State Veterans Home should be exempt from civil service.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1893, H.D. 1, and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

AARON LING JOHANSON, Chair