HB1893 SD1

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 the United States Department of Veterans Affairs and medicare or medicaid funds.

The legislature further finds that the Daniel K. Akaka state veterans home is currently being constructed by the department of defense and the department of accounting and general services. However, management, operation, and staffing of the Daniel K. Akaka state veterans home should be placed under a state agency able to manage a long-term care facility.

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.

PART II

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 Oahu regional health care system 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 Oahu regional health care system and the Daniel K. Akaka state veterans home shall be managed by the Oahu regional health care system.

(b) None of the liabilities of Daniel K. Akaka state veterans home in existence at the time the Daniel K. Akaka state veterans home is assimilated into the Oahu regional health care system shall become liabilities of the Oahu regional health care system.

(c) The Oahu regional health care system, at its discretion, may retain any or all medical and nonmedical employees of Daniel K. Akaka state veterans home.

(d) The Oahu regional health care system, 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 III

SECTION 3. 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 the transfer of the Oahu regional health care system into the department is completed pursuant to Act 212, Session Laws of Hawaii 2021, all rights, privileges, and obligations previously held by the Oahu regional health care system in relation to the Daniel K. Akaka state veterans home shall continue to be held 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 determining 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."

PART IV

SECTION 4. In codifying the new sections added by section 3 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 5. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2060.

HOUSE OF REPRESENTATIVES	H.B. NO.	1893
THIRTY-FIRST LEGISLATURE, 2022		H.D. 1
STATE OF HAWAII		S.D. 1