HOUSE OF REPRESENTATIVES |
H.B. NO. |
1893 |
THIRTY-FIRST LEGISLATURE, 2022 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO THE oahu regional health care system.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
PART I
SECTION 1. The legislature finds that the Daniel K.
Akaka state veterans home is currently under construction 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. State veterans homes
are funded primarily through veterans affairs and medicare or medicaid funds.
The purpose of this Act 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.
SECTION 2. (a) No later than December 31, 2022, or a date determined
by the governor, the Daniel K. Akaka state veterans home on Oahu shall be
assimilated into the Oahu regional health care system in a manner and to an
extent that may be negotiated between the Hawaii health systems corporation and
the department of defense. After
assimilation, the physical assets and the ground lease of Daniel K. Akaka state
veterans home shall become the property of the Hawaii health systems corporation
and the Daniel K. Akaka state veterans home shall be operated by the Hawaii
health systems corporation.
(b) None
of the liabilities of Daniel K. Akaka state veterans home shall become liabilities of the
corporation.
(c) The
Hawaii health systems corporation, at its discretion, may retain any or all medical
and nonmedical employees of Daniel K. Akaka state veterans home.
(d) The
corporation, without regard to sections 321-B and 323F—31, Hawaii Revised Statutes,
may adjust the levels of services provided by Daniel K. Akaka state veterans
home.
(e) The
Daniel K. Akaka state veterans home shall be exempt from chapter 102 and
section 103—53, Hawaii Revised Statutes, and its board of directors, if any, shall
be exempt from part I of chapter 92, Hawaii Revised Statutes.
(f) The
purchase of goods and services by or on behalf of the Daniel K. Akaka state veterans
home shall be exempt from chapters 103D and 103F, Hawaii Revised Statutes.
(g) Employees of the Daniel K. Akaka state veterans
home shall be exempt from
chapters 76, 87A, 88, and 89, Hawaii Revised Statutes, and shall not be
considered employees of the State.
PART II
SECTION 3. Act 212, Session Laws of Hawaii 2021, is amended as follows:
1. By amending section 6 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; [and]
(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[.];
(3) During the transition period, 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; and
(4) After assimilation of the Daniel K. Akaka veterans home into Oahu regional health care system, but before transfer of the Oahu regional health care system, all requests for operational funds necessary for the Daniel K. Akaka veterans home 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 a transition document 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 session of 2022, shall be completed no later than December
31, [2022,] 2023; provided that:
(1) All employees of the
Oahu region who are employed as of December 31, [2022,] 2023, 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."
2. By amending subsection (b) of section 7 to read:
"(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, [2022:] 2023:
(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."
3. By amending section 8 to read:
"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, [2022,] 2023, 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, [2022,]
2023, 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, [2022,]
2023, 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."
4. By amending section 9 to read:
"SECTION 9. (a) There
is established a working group of the Oahu regional health care system [and],
department of health, and the department of defense 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 adjutant general or the adjutant general's designee;
[(2)] (3) 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)] (4) The chief executive
officer of the Oahu regional health care system or the chief executive officer's
designee;
[(4)] (5) One or more department of health staff members
as deemed necessary by the director of health or the director's designee; and
[(5)] (6) 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
five-year proposed operating plan and budget for the operations of the Daniel K.
Akaka veterans home;
[(2)] (3) Preparation of a ten-year pro forma capital
improvement plan and budget for the continuing operations of Leahi hospital and
Maluhia;
(4) Preparation of a
ten-year proposed capital improvement plan and budget for the operations of the
Daniel K. Akaka veterans home;
[(3)] (5)
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)] (6) 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)] (7) 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)] (8) 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)] (9) 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)] (10) 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 a report to the
legislature no later than twenty days prior to the convening of the regular [session]
sessions of 2022 and 2023 that shall include the five-year pro forma
operating and budget [plan,] plans, ten-year pro forma capital improvement
[plan,] plans, 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 report shall also
document the completion of the transfer and dissolution of the Oahu regional health
care system.
(h) The working group shall be exempt from chapter 92, Hawaii Revised Statutes."
5. 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, [2022.] 2023."
SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2022-2023 for the creation of a comprehensive business plan and transfer framework for the transfer of the Oahu regional health care system and its current facilities, Leahi hospital and Maluhia, and future facility, the Daniel K. Akaka veterans home, to the department of health.
The sum appropriated shall be expended by the department of health for the purposes of this Act.
PART III
SECTION 5. Chapter 321, Hawaii Revised Statutes, is amended by adding two new sections to part I to be appropriately designated and to read as follows:
"§321-A Daniel K. Akaka state veterans home; department
authority. After acquisition of
the Daniel K. Akaka state veterans home by the department, the department may:
(1) Conduct
long-term care for veterans, their spouses and gold-star parents at the Daniel K.
Akaka state veterans home;
(2) Pay rent to the
Hawaii housing finance and development corporation for the use of the Daniel K.
Akaka state veterans home property pursuant to an existing lease;
(3) Use moneys from
the Department of Veterans Affairs established pursuant to An Act to Provide
Aid to State and Territorial Homes for Disabled Soldiers and Sailors of the
United States, approved August 27, 1888, or under any other Act or Acts of Congress
for the benefit of the state veterans homes and other sources to fund the
department's operations at the state veterans homes;
(4) Without regard
to chapter 91, develop and implement its own policies, procedures, and rules
necessary or appropriate to plan, operate, manage, and control the Daniel K.
Akaka state veterans home;
(5) Enter into and
perform any contract, lease, cooperative agreement, partnership, or other
transaction that may be necessary or appropriate in the performance of its
purposes and responsibilities, and on terms the department may deem appropriate
with any:
(A) Agency
or instrumentality of the United States;
(B) State,
territory, possession, or subdivision thereof; or
(C) 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;
(6) Conduct
activities and enter into business relationships that the department deems
necessary or appropriate, including:
(A) Creating
nonprofit corporations, including nonprofit corporations for charitable
fundraising, to be controlled wholly by the department or jointly with another entity;
and
(B) 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 section shall further the
public interest;
(7) Make and alter
facility bylaws and rules for the organization and management of the Daniel K.
Akaka state veterans home without regard to chapter 91;
(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, and in compliance with the terms and
conditions thereof;
(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 Daniel K. Akaka state veterans home or otherwise; and
(10) Approve medical
staff bylaws, rules, and medical staff appointments and reappointments for the
Daniel K. Akaka state veterans home, including to determine the conditions
under which a health professional may be extended the privilege of practicing
within the Daniel K. Akaka state veterans home, as determined by the department
or facility management, and adopting and implementing reasonable rules, without
regard to chapter 91, for the credentialing and peer review of all persons and
health professionals within the facility; provided that the department or
facility management shall be the governing body responsible for all medical staff
organization, peer review, and credentialing activities to the extent allowed
by law.
§321-B Reduction or elimination of direct patient
care services. (a) No planned substantial reduction or
elimination of direct patient care services at the Daniel K. Akaka state
veterans home shall be undertaken unless all of the following requirements are met:
(1) An initial
determination is made by the department as to critical and emergency services,
which shall not be subject to reduction or elimination pursuant to this
section;
(2) The plan of the
facility to substantially reduce or eliminate any direct patient care services
at the Daniel K. Akaka state veterans home shall first be presented to the
director of health for approval;
(3) Subsequent to
the requisite director approval, the department shall present the plan to the
community in which the facility is located at a community informational meeting,
in order to obtain community input on the plan; and
(4) After the community
informational meeting, but at least twenty days prior to the implementation of
the approved plan, the director shall give notice of the implementation of the
plan to the governor, president of the senate, and speaker of the house of
representatives.
(b) Upon meeting the requirements of subsection
(a), the approved plan shall be implemented unless legislation has been enacted
that:
(1) Requires the
reinstatement and continuation of direct patient care services that are subject
to reduction or elimination under the plan; and
(2) Includes an appropriation of additional moneys sufficient to adequately fund the mandated reinstatement and continuation of the direct patient care services that are subject to reduction or elimination under the plan."
SECTION 6. In codifying the new sections added by section 5 of this Act and referenced in section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 8. Act shall take effect on July 1, 2022.
INTRODUCED
BY: |
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Report Title:
HHSC; DOH; Daniel K. Akaka State Veterans Home; Transition
Description:
Requires the transfer of the Daniel K. Akaka state veterans home to the Hawaii Health Systems Corporation and then to the Department of Health as part of the Oahu Regional Health Care System. Extends the date of the transfer of the Oahu Regional Health Care System to the Department of Health by 1 year.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.