REPORT TITLE:
Maui Regional Hlth Sys. Corp.


DESCRIPTION:
Creates Maui regional health systems corporation as a public
corporation and transfers Kula Hospital, Lanai Community
Hospital, and Maui Memorial Hospital and their assets and
liabilities from the Hawaii health systems corporation and
returns them after 5 years.  Effective 7/1/2000.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           2344
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT
RELATING TO THE MAUI REGIONAL HEALTH SYSTEMS CORPORATION.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The legislature finds that certain neighbor
 
 2 island health facilities of the Hawaii health systems
 
 3 corporation, particularly Kula Hospital, Lanai Community
 
 4 Hospital, and Maui Memorial Hospital, have not benefitted from
 
 5 the flexibility and autonomy granted to the corporation in 1996.
 
 6 For these and other neighbor island health facilities to compete
 
 7 and remain viable, the legislature finds that it is necessary to
 
 8 grant separate autonomy for neighbor island health facilities and
 
 9 community hospitals.
 
10      The purpose of this Act is to create a Maui regional health
 
11 systems corporation to own and operate the Kula Hospital, Lanai
 
12 Community Hospital, and Maui Memorial Hospital.  This corporation
 
13 will have same rights, powers, functions, and duties of the
 
14 Hawaii health systems corporation.  It is the intention of this
 
15 Act that the Kula Hospital, the Lanai Community Hospital, and the
 
16 Maui Memorial Hospital be transferred from the Hawaii health
 
17 systems corporation to the Maui regional health systems
 
18 corporation for a period of five years from July 1, 2000 to
 
19 June 30, 2005, in order to test the viability of a more focused
 
20 autonomous structure as embodied by the Maui regional health
 

 
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 1 systems corporation.
 
 2      Nothing in this Act other than the provisions for
 
 3 legislative oversight over the budget and activities of the
 
 4 corporation shall be construed as a restriction or limitation
 
 5 upon any other powers that the Maui regional health systems
 
 6 corporation might otherwise have under any other law of this
 
 7 State.  This Act is cumulative to any such powers.  This Act
 
 8 shall be construed to provide a complete, additional, and
 
 9 alternative method for doing the things authorized in other laws
 
10 and shall be regarded as supplemental and additional to powers
 
11 conferred by other laws.  It is also the intent of the
 
12 legislature that all of the activities and services of the Hawaii
 
13 health systems corporation be continued without interruption by
 
14 the Maui regional health systems corporation during the
 
15 implementation of this Act.
 
16                              Part I
 
17      SECTION 2.  The Hawaii Revised Statutes is amended by adding
 
18 a new chapter to be appropriately designated and to read as
 
19 follows:
 
20                             "CHAPTER
 
21             MAUI REGIONAL HEALTH SYSTEMS CORPORATION
 
22                    PART I.  GENERAL PROVISIONS
 
23      §   -1  Definitions.  As used in this chapter, unless the
 

 
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                                     S.B. NO.           2344
                                                        
                                                        

 
 1 context otherwise requires:
 
 2      "Corporation" means the body corporate and politic known as
 
 3 the Maui regional health systems corporation.
 
 4      "Corporation board" means the board of directors of the
 
 5 corporation.
 
 6      "Consumer" means any individual who may utilize a Maui
 
 7 regional health systems facility for health services and is not a
 
 8 provider.
 
 9      "Health systems assets" means all property or rights in
 
10 property, real, personal and mixed, tangible or intangible,
 
11 existing on June 30, 1998, used by or accruing to the Hawaii
 
12 health systems corporation in the normal course of its
 
13 operations.
 
14      "Health systems liabilities" means, without limitation, all
 
15 debts or other obligations, contingent or certain, owing on
 
16 June 30, 1998, by the Hawaii health systems corporation in the
 
17 normal course of its operations.
 
18      "Maui health facility" means only Kula Hospital, Lanai
 
19 Community Hospital, and Maui Memorial Hospital.
 
20      "Provider" means any supplier of medical or health care
 
21 goods and services of the type provided at a Maui regional health
 
22 systems facility.
 
23      §   -2  Maui regional health systems corporation; transfer
 

 


 

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                                     S.B. NO.           2344
                                                        
                                                        

 
 1 of health systems assets and health systems liabilities.  (a)
 
 2 There is established the Maui regional health systems
 
 3 corporation, which shall be a public body corporate and politic
 
 4 and an instrumentality and agency of the State.  The corporation
 
 5 shall be placed within the department of health for the
 
 6 administrative purposes specified in section 26-35(6) only.
 
 7      (b)  The corporate organization shall consist of only the
 
 8 Maui health facilities, namely, Kula Hospital, Lanai Community
 
 9 Hospital, and Maui Memorial Hospital.
 
10      (c)  On July 1, 2000, all health systems assets and health
 
11 systems liabilities of the Hawaii health systems corporation,
 
12 with respect only to Kula Hospital, Lanai Community Hospital, and
 
13 Maui Memorial Hospital shall be transferred to the Maui regional
 
14 health systems corporation.
 
15      §   -3  Corporation board.(a)  The corporation shall be
 
16 governed by a nine-member board of directors which shall carry
 
17 out the duties and responsibilities of the corporation.
 
18      (b)  Corporation board members shall be appointed by the
 
19 governor, subject to confirmation by the senate pursuant to
 
20 section 26-34, from lists of nominees selected by the Maui public
 
21 health facility management advisory committee.  Corporation board
 
22 members shall include medical and health care providers,
 
23 consumers, and knowledgeable individuals in other appropriate
 

 
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 1 areas such as business and law; provided that:
 
 2      (1)  At least one member shall be a physician with active
 
 3           medical staff privileges at one of the Maui health
 
 4           facilities;
 
 5      (2)  At least three members shall be consumers; and
 
 6      (3)  One member shall be the director of health or the
 
 7           director's designee, who shall serve as an ex officio,
 
 8           voting member.
 
 9      Members shall serve for a term of three years; provided that
 
10 of the members initially appointed, except for the director of
 
11 health, two members shall serve for one year and three members
 
12 shall serve for two years.  Any vacancy shall be filled in the
 
13 same manner provided for the original appointments.  The
 
14 corporation board shall elect its own chair from among its
 
15 members.
 
16      (c)  Members shall serve without compensation but may be
 
17 reimbursed for actual expenses, including travel expenses
 
18 incurred in the performance of their duties.
 
19      (d)  Any member of the corporation board may be removed for
 
20 cause by the governor or for cause by vote of a two-thirds
 
21 majority of the board's members then in office.  For purposes of
 
22 this section, cause shall include without limitation:
 
23      (1)  Malfeasance in office;
 

 
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                                     S.B. NO.           2344
                                                        
                                                        

 
 1      (2)  Failure to attend regularly called meetings;
 
 2      (3)  Sentencing for conviction of a felony, to the extent
 
 3           allowed by section 831-2; or
 
 4      (4)  Any other cause that may render a member incapable or
 
 5           unfit to discharge the duties required under this
 
 6           chapter.
 
 7 Filing nomination papers for elective office or appointment to
 
 8 elective office, or conviction of a felony consistent with
 
 9 section 831-3.1, shall automatically and immediately disqualify a
 
10 corporation board member from office.
 
11      §   -4  Corporation board meetings.  (a)  The corporation
 
12 board shall meet no fewer than four times a year.  All meetings
 
13 of the corporation board shall be subject to chapter 92, except
 
14 that in addition to matters exempted pursuant to law, the
 
15 corporation board may elect to hold an executive meeting for the
 
16 consideration of any matters set forth in section     -6.
 
17      (b)  All business of the corporation board shall be
 
18 conducted at a regular or special meeting at which a quorum is
 
19 present, consisting of at least a majority of the directors then
 
20 in office.  Any action of the corporation board shall require the
 
21 affirmative vote of a majority of those present and voting at the
 
22 meeting; except that a vote of two-thirds of the members of the
 
23 corporation board then in office shall be required for any of the
 

 
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                                     S.B. NO.           2344
                                                        
                                                        

 
 1 following actions:
 
 2      (1)  Removal by the corporation board of one of its members;
 
 3      (2)  Amendment by the corporation board of its bylaws;
 
 4      (3)  Hiring or removing the chief executive officer of the
 
 5           corporation; and
 
 6      (4)  Any other actions as provided by the corporation
 
 7           bylaws.
 
 8      §   -5  Disclosure of interests.  All corporation board
 
 9 members and employees of the corporation shall be subject to
 
10 chapter 84.
 
11      §   -6  Records.  The corporation shall be subject to the
 
12 requirements of chapter 92F, except that the following categories
 
13 of government records shall not be required to be disclosed:
 
14      (1)  Applications for credentials or staff privileges at any
 
15           of the corporation's medical facilities, records from
 
16           peer review proceedings, and medical records; and
 
17      (2)  Marketing strategies, strategic plans, evaluations,
 
18           assessments, negotiations, or rates and charges, the
 
19           disclosure of which would raise the cost of procurement
 
20           or give a manifestly unfair advantage to any competitor
 
21           or to any person or entity seeking to do business or
 
22           proposing to enter into an agreement with the
 
23           corporation or any of its facilities.
 

 
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                                     S.B. NO.           2344
                                                        
                                                        

 
 1      Any person denied access to these government records shall
 
 2 have available the remedies specified in sections 92F-15 and
 
 3 92F-15.5.  Government records protected from disclosure by this
 
 4 section shall be subject to the interagency disclosure provisions
 
 5 of section 92F-19.  Section 624-25.5 shall apply to this part
 
 6 notwithstanding anything to the contrary contained in this
 
 7 section.
 
 8      §   -7  Duties and powers of the corporation.(a)
 
 9 Notwithstanding any other law to the contrary, the corporation
 
10 shall have and exercise the following duties and powers:
 
11      (1)  Developing its own policies, procedures, and rules
 
12           necessary or appropriate to plan, operate, manage, and
 
13           control the system of public Maui health facilities and
 
14           services without regard to chapter 91;
 
15      (2)  Evaluating the need for Maui health facilities and
 
16           services;
 
17      (3)  Entering into and performing any contracts, leases,
 
18           cooperative agreements, or other transactions
 
19           whatsoever that may be necessary or appropriate in the
 
20           performance of its purposes and responsibilities, and
 
21           on terms it may deem appropriate, with either:
 
22           (A)  Any agency or instrumentality of the United
 
23                States, or with any state, territory, or
 

 
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                                     S.B. NO.           2344
                                                        
                                                        

 
 1                possession, or with any subdivision thereof; or
 
 2           (B)  Any person, firm, association, or corporation,
 
 3                whether operated on a for profit or not for profit
 
 4                basis;
 
 5           provided that the transaction furthers the public
 
 6           interest;
 
 7      (4)  Conducting activities and entering into business
 
 8           relationships as the corporation board deems necessary
 
 9           or appropriate, including but not limited to:
 
10           (A)  Creating nonprofit corporations, including
 
11                charitable fund-raising foundations, to be
 
12                controlled wholly by the corporation or jointly
 
13                with others;
 
14           (B)  Establishing, subscribing to, and owning stock in
 
15                business corporations individually or jointly with
 
16                others; and
 
17           (C)  Entering into partnerships and other joint venture
 
18                arrangements, or participating in alliances,
 
19                purchasing consortia, health insurance pools, or
 
20                other cooperative arrangements, with any public or
 
21                private entity; provided that:
 
22                (i)  Any corporation, venture, or relationship
 
23                     entered into under this section furthers the
 

 
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                                     S.B. NO.           2344
                                                        
                                                        

 
 1                     public interest; and
 
 2               (ii)  This paragraph shall not be construed to
 
 3                     authorize the corporation to abrogate any
 
 4                     responsibility or obligation under paragraph
 
 5                     (15);
 
 6      (5)  Participating in and developing prepaid health care
 
 7           service and insurance programs and other alternative
 
 8           health care delivery programs for the Maui health
 
 9           facilities, including programs involving the acceptance
 
10           of capitated payments or premiums that include the
 
11           assumption of financial and actuarial risk;
 
12      (6)  Executing, in accordance with all applicable bylaws,
 
13           rules, and laws, all instruments necessary or
 
14           appropriate in the exercise of any of the corporation's
 
15           powers;
 
16      (7)  Preparing and executing all corporation budgets,
 
17           policies, and procedures;
 
18      (8)  Setting rates and charges for all services provided by
 
19           the corporation through the Maui health facilities
 
20           without regard to the public notice and public hearing
 
21           requirements of chapter 91;
 
22      (9)  Developing a corporation-wide hospital personnel system
 
23           that is subject to chapters 76, 77, and 89;
 

 
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                                     S.B. NO.           2344
                                                        
                                                        

 
 1     (10)  Developing the corporation's capital and strategic
 
 2           plans;
 
 3     (11)  Suing and being sued; provided that the corporation
 
 4           shall enjoy the same sovereign immunity available to
 
 5           the State;
 
 6     (12)  Making and altering corporation board bylaws for its
 
 7           organization and management without regard to the
 
 8           public notice and public hearing requirements of
 
 9           chapter 91;
 
10     (13)  Adopting rules, without regard to the public notice and
 
11           public hearing requirements of chapter 91, governing
 
12           the exercise of its powers and the fulfillment of its
 
13           purpose under this chapter;
 
14     (14)  Entering into any contract or agreement whatsoever, not
 
15           inconsistent with this chapter or the laws of this
 
16           State, and authorizing the corporation chief executive
 
17           officer to enter into all contracts, execute all
 
18           instruments, and do all things necessary or appropriate
 
19           in the exercise of the powers granted in this chapter,
 
20           including securing the payment of bonds;
 
21     (15)  Issuing revenue bonds subject to the approval of the
 
22           legislature; provided that all revenue bonds shall be
 
23           issued pursuant to part III, chapter 39;
 

 
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                                     S.B. NO.           2344
                                                        
                                                        

 
 1     (16)  Reimbursing the state general fund for debt service on
 
 2           general obligation bonds or reimbursable general
 
 3           obligation bonds issued by the State for the purposes
 
 4           of the corporation;
 
 5     (17)  Pledging or assigning all or any part of the receipts
 
 6           and revenues of the corporation for purposes of meeting
 
 7           bond or health systems liabilities;
 
 8     (18)  Owning, purchasing, leasing, exchanging, or otherwise
 
 9           acquiring property, whether real, personal or mixed,
 
10           tangible or intangible, and of any interest therein, in
 
11           the name of the corporation, which property is not
 
12           owned or controlled by the State, but is owned or
 
13           controlled by the corporation;
 
14     (19)  Maintaining, improving, pledging, mortgaging, selling,
 
15           or otherwise holding or disposing of property, whether
 
16           real, personal or mixed, tangible or intangible, and of
 
17           any interest therein, at any time and manner, in
 
18           furtherance of the purposes and mission of the
 
19           corporation; provided that the corporation legally
 
20           holds or controls the property in its own name; and
 
21           provided further that the corporation shall not sell,
 
22           assign, lease, hypothecate, mortgage, pledge, give, or
 
23           dispose of a substantial portion of its property of any
 

 
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                                     S.B. NO.           2344
                                                        
                                                        

 
 1           nature;
 
 2     (20)  Purchasing insurance and creating captive insurers in
 
 3           any arrangement deemed in the best interest of the
 
 4           corporation, including but not limited to funding and
 
 5           payment of deductibles and purchase of reinsurance;
 
 6     (21)  Acquiring by condemnation, pursuant to chapter 101, any
 
 7           real property required by the corporation to carry out
 
 8           the powers granted by this chapter;
 
 9     (22)  Depositing any moneys of the corporation in any banking
 
10           institution within or without the State, and
 
11           appointing, for the purpose of making deposits, one or
 
12           more persons to act as custodians of the moneys of the
 
13           corporation;
 
14     (23)  Contracting for and accepting any gifts, grants, and
 
15           loans of funds, property, or any other aid in any form
 
16           from the federal government, the State, any state
 
17           agency, or any other source, or any combination
 
18           thereof, and complying, subject to this chapter, with
 
19           the terms and conditions thereof;
 
20     (24)  Providing health and medical services for the public in
 
21           the county of Maui and on Lanai directly or by
 
22           agreement or lease with any person, firm, private or
 
23           public corporation or association through or in the
 

 
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                                     S.B. NO.           2344
                                                        
                                                        

 
 1           Maui health facilities or otherwise;
 
 2     (25)  Approving medical staff bylaws, rules, and medical
 
 3           staff appointments and reappointments for all Maui
 
 4           health facilities, including without limitation,
 
 5           determining the conditions under which a health
 
 6           professional may be extended the privilege of
 
 7           practicing within a Maui health facility, and adopting
 
 8           and implementing reasonable rules, without regard to
 
 9           the public notice and public hearing requirements of
 
10           chapter 91, for the credentialing and peer review of
 
11           all persons and health professionals within the
 
12           facility;
 
13     (26)  (A)  Investing any funds not required for immediate
 
14                disbursement in property or in securities that
 
15                meet the standard for investments established in
 
16                chapter 88 as provided by the corporation board;
 
17                provided the investment assists the corporation in
 
18                carrying out its public purposes; selling from
 
19                time to time securities thus purchased and held,
 
20                and depositing any securities in any bank or
 
21                financial institution within or without the State.
 
22                Any funds deposited in a banking institution or in
 
23                any depository authorized in this section shall be
 

 
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                                     S.B. NO.           2344
                                                        
                                                        

 
 1                secured in a manner and subject to terms and
 
 2                conditions as the corporation board may determine,
 
 3                with or without payment of any interest on the
 
 4                deposit, including, without limitation, time
 
 5                deposits evidenced by certificates of deposit.
 
 6                Any bank or financial institution incorporated
 
 7                under the laws of this State may act as depository
 
 8                of any funds of the corporation and may issue
 
 9                indemnity bonds or may pledge securities as may be
 
10                required by the corporation board.
 
11           (B)  Notwithstanding subparagraph (A), contracting with
 
12                the holders of any of its notes or bonds as to the
 
13                custody, collection, securing, investment, and
 
14                payment of any moneys of the corporation and of
 
15                any moneys held in trust or otherwise for the
 
16                payment of notes or bonds and carrying out the
 
17                contract.  Moneys held in trust or otherwise for
 
18                the payment of notes or bonds or in any way to
 
19                secure notes or bonds, and deposits of such
 
20                moneys, may be secured in the same manner as
 
21                moneys of the corporation, and all banks and trust
 
22                companies are authorized to give security for the
 
23                deposits;
 

 
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                                     S.B. NO.           2344
                                                        
                                                        

 
 1     (27)  Entering into any agreement with the State, including
 
 2           contracts for the provision of goods, services, and
 
 3           facilities in support of the corporation's programs,
 
 4           and contracting for the provision of services to or on
 
 5           behalf of the State;
 
 6     (28)  Having a seal and altering the same at pleasure;
 
 7     (29)  Waiving, by means that the corporation deems
 
 8           appropriate, the exemption from federal income taxation
 
 9           of interest on the corporation's bonds, notes, or other
 
10           obligations provided by the Internal Revenue Code of
 
11           1986, as amended, or any other federal statute
 
12           providing a similar exemption;
 
13     (30)  Developing internal policies and procedures for the
 
14           procurement of goods and services, consistent with the
 
15           goals of public accountability and public procurement
 
16           practices, but not subject to chapter 103D.  However,
 
17           where possible, the corporation is encouraged to use
 
18           the provisions of chapter 103D; provided that the use
 
19           of one or more provisions of chapter 103D shall not
 
20           constitute a waiver of the exemption of chapter 103D
 
21           and shall not subject the corporation to any other
 
22           provision of chapter 103D;
 
23     (31)  Calling upon the attorney general for any legal
 

 
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                                     S.B. NO.           2344
                                                        
                                                        

 
 1           services that the corporation may require; and
 
 2     (32)  Having and exercising all rights and powers necessary
 
 3           or incidental to or implied from the specific powers
 
 4           granted in this chapter, which specific powers shall
 
 5           not be considered as a limitation upon any power
 
 6           necessary or appropriate to carry out the purposes and
 
 7           intent of this chapter.
 
 8      (b)  The corporation shall not be subject to chapters 36 to
 
 9 38, 40, and 41D, except as otherwise provided in this chapter.
 
10      §   -8  Chief executive officer; exempt positions.(a)  The
 
11 corporation board may appoint, exempt from chapters 76 and 77 and
 
12 section 26-35(4), a chief executive officer of the corporation
 
13 whose salary shall be set by the corporation board.  The chief
 
14 executive officer may also appoint up to five other personnel,
 
15 exempt from chapters 76, 77, and 89, to work directly for the
 
16 chief executive officer and the corporate board.
 
17      (b)  The corporation board or its designee may discharge its
 
18 exempt personnel with or without cause; provided that removal
 
19 without cause shall not prejudice any contract rights of
 
20 personnel.
 
21      §   -9  Hiring of attorneys.  The corporation may employ or
 
22 retain any attorney, by contract or otherwise, for the purpose of
 
23 representing the corporation in any litigation, rendering legal
 

 
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                                     S.B. NO.           2344
                                                        
                                                        

 
 1 counsel to the corporation, or drafting legal documents for the
 
 2 corporation.
 
 3      §   -10  Maui public health facility management advisory
 
 4 committee.(a)  There shall be established within the
 
 5 corporation, a public health facility management advisory
 
 6 committee to consist of nine members to be appointed by the chief
 
 7 executive officer of the corporation with the advice of the
 
 8 hospital administrators of the Maui health facilities.  Members
 
 9 shall serve for a term of three years.  The management advisory
 
10 committee shall include medical and health care providers,
 
11 consumers, and knowledgeable individuals in other appropriate
 
12 areas such as business and law; provided that at least one member
 
13 shall be a physician with active medical staff privileges at one
 
14 of the region's public health facilities.  At least three members
 
15 of the committee shall be consumers.  The committee shall select
 
16 its own chairperson and vice chairperson and may adopt rules that
 
17 it may consider necessary for the conduct of its business.
 
18      (b)  Members of the committee shall serve without
 
19 compensation, but may be reimbursed for traveling expenses
 
20 incurred in the performance of their duties.  The corporation
 
21 shall provide for the necessary expenses of the committees;
 
22 provided that no expenses may be incurred without prior
 
23 authorization by the chief executive officer.
 

 
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                                     S.B. NO.           2344
                                                        
                                                        

 
 1      (c)  The committee shall advise the chief executive officer
 
 2 on matters concerning the formulation of operational and capital
 
 3 improvement budgets, and the planning, construction, improvement,
 
 4 maintenance, and operation of the Maui health facilities.  The
 
 5 committee shall select nominees for appointment to the
 
 6 corporation board by the governor pursuant to section    -3.
 
 7 Nothing in this section shall be construed as precluding or
 
 8 preventing the committee from coordinating its efforts and
 
 9 activities with the facility administrators in the Maui regional
 
10 health systems corporation.
 
11      (d)  The committee may prepare a report for inclusion with
 
12 the corporation's annual report and audit which shall include,
 
13 but not be limited to, comments and analyses on the corporation's
 
14 operational and capital improvement budgets.
 
15      §   -11  Executive branch; noninterference.  Notwithstanding
 
16 any other law to the contrary, the governor and executive branch
 
17 agencies shall limit their responsibilities to that of review and
 
18 oversight when the corporation receives general funds from the
 
19 State to subsidize the operating budgets of deficit facilities.
 
20 The governor and executive branch agencies shall not interfere
 
21 with the systemic change, capacity building, advocacy, budget,
 
22 personnel, system plan development, or plan implementation
 
23 activities of the corporation.  The governor and executive branch
 

 
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                                     S.B. NO.           2344
                                                        
                                                        

 
 1 agencies shall not interfere with the ability of the corporation
 
 2 to function as a multiple facility, public hospital system,
 
 3 delivering health care services to the residents of Maui and
 
 4 Lanai.
 
 5                   PART II.  BUDGET AND FINANCE
 
 6      §   -21  Fiscal provisions.  (a)  There is created in the
 
 7 state treasury a special fund to be known as the Maui regional
 
 8 health systems special fund into which shall be deposited all
 
 9 fees, proceeds, reimbursements, and the like owed to or received
 
10 by the corporation and its facilities, except as herein provided.
 
11 The special fund shall be used solely to fulfill the purposes
 
12 outlined in this chapter.
 
13      The corporation may establish and maintain within its
 
14 special fund, accounts that may be necessary and appropriate to
 
15 carry out its purposes and responsibilities.
 
16      The corporation may provide reasonable reserves for any of
 
17 the following purposes:
 
18      (1)  Insurance deductibles;
 
19      (2)  The improvement, replacement, or expansion of its
 
20           facilities or services;
 
21      (3)  The securing of the corporation's bonds, notes, or
 
22           other instruments of indebtedness; or
 
23      (4)  Any other purpose it deems necessary or appropriate in
 

 
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                                     S.B. NO.           2344
                                                        
                                                        

 
 1           the performance of its purposes and responsibilities.
 
 2      (b)  The corporation board shall develop annual operating
 
 3 and capital budgets for each Maui health facility.  The
 
 4 corporation shall develop budgetary guidelines, and may allocate
 
 5 to each facility reasonable corporation administrative costs,
 
 6 including funds determined by the corporation to be needed from
 
 7 or provided to each facility to:
 
 8      (1)  Repay corporation debts;
 
 9      (2)  Provide subsidies to any facility determined to be
 
10           unable to fund from within that facility's programs and
 
11           services deemed essential to community needs; and
 
12      (3)  Maintain appropriate reserves.
 
13      (c)  The corporation shall develop annual corporation
 
14 operating and capital budgets, taking into account anticipated
 
15 surpluses from or subsidies to the facilities pursuant to the
 
16 annual guidelines described in this section, accumulated
 
17 corporation reserves and accounts, subsidies, if any, that are
 
18 determined to be needed from the general fund, and other sources
 
19 of corporation-wide income as may be identified.
 
20      (d)  The corporation may share in any facility's surplus and
 
21 may offset any facility's deficits.  Obligations undertaken by a
 
22 facility shall be paid only from funds of that facility, unless
 
23 the corporation board or its authorized agent explicitly agrees
 

 
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                                     S.B. NO.           2344
                                                        
                                                        

 
 1 to guarantee the obligation.
 
 2      (e)  In accordance with each annual facility budget, each
 
 3 facility of the corporation shall:
 
 4      (1)  Bill and collect for its services;
 
 5      (2)  Maintain bank accounts; and
 
 6      (3)  Pay for needed personnel, supplies, equipment, and
 
 7           other operational and capital expenditures.
 
 8      (f)  The corporation may elect to manage its own capital
 
 9 improvement project and funds, either directly or indirectly by
 
10 contract; provided that annual reports of the project moneys are
 
11 provided to the governor and legislature.
 
12      (g)  The corporation board may hold public informational
 
13 meetings on its budget.  Representatives of the Maui county
 
14 government, state government, or any other person having an
 
15 interest in the budget, shall have the right to be heard at the
 
16 meetings.
 
17      §   -22  Annual audit and report; disclosure of revenue
 
18 projections.(a)  The corporation shall engage a certified
 
19 public accountant to conduct an annual audit of its financial
 
20 affairs, books, and records in accordance with generally accepted
 
21 accounting principles.  The corporation shall submit to the
 
22 governor and the legislature within one-hundred-fifty days after
 
23 the close of the corporation's fiscal year, a report that shall
 

 
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 1 include the audited financial report for that fiscal year.
 
 2      (b)  In addition to the submittal of the audit required
 
 3 under subsection (a), the corporation shall submit a report to
 
 4 the legislature at least twenty days prior to the convening of
 
 5 each regular session that shall include:
 
 6      (1)  The projected revenues for each Maui health facility;
 
 7      (2)  A list of all proposed capital improvement projects
 
 8           planned for implementation during the following fiscal
 
 9           year; and
 
10      (3)  All reports submitted by the Maui public health
 
11           facility management advisory committee pursuant to
 
12           section    -10(d).
 
13      §   -23  Exemption from taxation.  The corporation shall not
 
14 be required to pay assessments levied by any county, nor shall
 
15 the corporation be required to pay state taxes of any kind.
 
16      §   -24  Budget oversight.  The corporation's operating and
 
17 capital improvement budgets shall not be subject to review or
 
18 approval by the governor or any state agency, except where state
 
19 general funds or capital improvement moneys are requested.  If
 
20 general funds or capital improvement moneys are requested, then
 
21 the corporation shall include with its request, the proposed
 
22 budget for which the funds or moneys are to be included.  The
 
23 corporation shall submit its budgets annually to the legislature
 

 
Page 24                                                    
                                     S.B. NO.           2344
                                                        
                                                        

 
 1 for review and approval at least twenty days prior to the
 
 2 convening of the regular legislative session, beginning with the
 
 3 budgets for the 2001-2002 fiscal years.
 
 4                    PART III.  OTHER PROVISIONS
 
 5      §   -31  Maintenance of services.  (a)  The corporation
 
 6 shall notify the legislature of any planned substantial reduction
 
 7 or elimination of direct patient care services.
 
 8      (b)  No substantial reduction or elimination of direct
 
 9 patient care services at any Maui health facility shall be
 
10 undertaken by the corporation without the approval of the
 
11 legislature.
 
12      (c)  The legislature shall maintain review and oversight
 
13 authority over the provision of direct patient care services
 
14 provided at each Maui health facility and may intervene to
 
15 counter or restrict any substantial reduction or elimination of
 
16 patient care services."
 
17      SECTION 3.  Chapter 76, Hawaii Revised Statutes, is amended
 
18 by adding three new sections to be appropriately designated and
 
19 to read as follows:
 
20      "§76-     Employees of the Maui regional health systems
 
21 corporation.  It is the intent of the legislature that the
 
22 personnel of the Maui regional health systems corporation shall
 
23 constitute a separately administered part of the system of
 

 
Page 25                                                    
                                     S.B. NO.           2344
                                                        
                                                        

 
 1 personnel administration established by this chapter and chapter
 
 2 77, unless specifically exempted by this chapter or any other
 
 3 law; provided that:
 
 4      (1)  The Maui regional health systems corporation shall have
 
 5           a status coequal with the executive branch of the State
 
 6           and with the several counties for purposes of:
 
 7           (A)  Developing a position classification plan;
 
 8           (B)  Formulating personnel rules; and
 
 9           (C)  Administering the Maui regional health systems
 
10                corporation personnel system, including
 
11                classification, reclassification, allocation, and
 
12                reallocation of a particular position; the
 
13                publication of a vacancy announcement; the
 
14                examination of applicants; and the preparation of
 
15                eligible lists;
 
16      (2)  In the development of a position classification plan,
 
17           the formulation of personnel rules and regulations, and
 
18           the administration of the Maui regional health systems
 
19           corporation personnel system, the corporation chief
 
20           executive officer or designee shall consult with the
 
21           director of human resources development;
 
22      (3)  Any action of the corporation chief executive officer
 
23           or designee including:
 

 
Page 26                                                    
                                     S.B. NO.           2344
                                                        
                                                        

 
 1           (A)  The classification, reclassification, allocation,
 
 2                and reallocation of a particular position;
 
 3           (B)  The publication of a vacancy announcement;
 
 4           (C)  The examination of applicants;
 
 5           (D)  The preparation of an eligible list; and
 
 6           (E)  Appeals from suspensions, dismissals, and
 
 7                demotions not covered by collective bargaining;
 
 8           may be appealed by any person, employee, or the
 
 9           exclusive bargaining unit representative to the Maui
 
10           regional health systems corporation personnel appeals
 
11           board.  The board shall be composed of three members,
 
12           one representative from the department of human
 
13           resources development, one representative of the Maui
 
14           regional health systems corporation, and one
 
15           appropriate exclusive bargaining unit representative.
 
16           Section 26-34 shall not apply to the members of the
 
17           Maui regional health systems corporation personnel
 
18           appeals board.  The board shall sit as an appellate
 
19           body on matters within the jurisdiction of the Maui
 
20           regional health systems corporation with equal
 
21           authority as the civil service commission established
 
22           by section 26-5; and
 
23      (4)  Nothing in chapters 76 and 77 shall be construed to
 

 
Page 27                                                    
                                     S.B. NO.           2344
                                                        
                                                        

 
 1           require the approval of the governor or any executive
 
 2           agency for the Maui regional health systems corporation
 
 3           to establish such positions in the corporation as may
 
 4           be authorized and funded by the legislature.
 
 5      §76-     Maui regional health systems corporation; powers
 
 6 and duties.  All of the powers and duties assigned in parts I,
 
 7 IV, and V to the governor or the director of human resources
 
 8 development, with respect to the Maui regional health systems
 
 9 corporation, shall be assigned to the Maui regional health
 
10 systems corporation chief executive officer or designee.
 
11      §76-     Civil service for the Maui regional health systems
 
12 corporation.  (a)  There shall be a civil service system for the
 
13 Maui regional health systems corporation.  Except as otherwise
 
14 specifically provided in this section, all of the provisions of
 
15 part II shall apply to the Maui regional health systems
 
16 corporation.
 
17      (b)  All of the powers and duties assigned to the director
 
18 of human resources development in part II, with respect to the
 
19 Maui regional health systems corporation, shall be exercised by
 
20 the Maui regional health systems corporation chief executive
 
21 officer's designee.
 
22      (c)  When applying part II to the Maui regional health
 
23 systems corporation:
 

 
Page 28                                                    
                                     S.B. NO.           2344
                                                        
                                                        

 
 1      "Department" means the Maui regional health systems
 
 2 corporation;
 
 3      "Director" means the corporation chief executive officer's
 
 4 designee;
 
 5      "Governor" means the corporation chief executive officer;
 
 6 and
 
 7      "State" means the Maui regional health systems corporation."
 
 8      SECTION 4.  Section 28-8.3, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      1.   By amending subsection (a) to read:
 
11      "(a)  No department of the State other than the attorney
 
12 general may employ or retain any attorney, by contract or
 
13 otherwise, for the purpose of representing the State or the
 
14 department in any litigation, rendering legal counsel to the
 
15 department, or drafting legal documents for the department;
 
16 provided that the foregoing provision shall not apply to the
 
17 employment or retention of attorneys:
 
18      (1)  By the public utilities commission, the labor and
 
19           industrial relations appeals board, and the Hawaii
 
20           labor relations board;
 
21      (2)  By any court or judicial or legislative office of the
 
22           State;
 
23      (3)  By the legislative reference bureau;
 

 
Page 29                                                    
                                     S.B. NO.           2344
                                                        
                                                        

 
 1      (4)  By any compilation commission that may be constituted
 
 2           from time to time;
 
 3      (5)  By the real estate commission for any action involving
 
 4           the real estate recovery fund;
 
 5      (6)  By the contractors license board for any action
 
 6           involving the contractors recovery fund;
 
 7      (7)  By the trustees for any action involving the travel
 
 8           agency recovery fund;
 
 9      (8)  By the office of Hawaiian affairs;
 
10      (9)  By the department of commerce and consumer affairs for
 
11           the enforcement of violations of chapters 480 and 485;
 
12     (10)  As grand jury counsel;
 
13     (11)  By the Hawaiian home lands trust individual claims
 
14           review panel;
 
15     (12)  By the Hawaii health systems corporation or any of its
 
16           facilities;
 
17     (13)  By the auditor;
 
18     (14)  By the office of ombudsman;
 
19     (15)  By the insurance division;
 
20     (16)  By the University of Hawaii; [or]
 
21     (17)  By the Maui regional health systems corporation or any
 
22           of its facilities; or
 
23    [(17)] (18)  By a department, in the event the attorney
 

 
Page 30                                                    
                                     S.B. NO.           2344
                                                        
                                                        

 
 1           general, for reasons deemed by the attorney general
 
 2           good and sufficient, declines, to employ or retain an
 
 3           attorney for a department; provided that the governor
 
 4           thereupon waives the provision of this section."
 
 5      2.   By amending subsection (c) to read:
 
 6      "(c)  Every attorney employed by any department on a full-
 
 7 time basis, except an attorney employed by the public utilities
 
 8 commission, the labor and industrial relations appeals board, the
 
 9 Hawaii labor relations board, the office of Hawaiian affairs, the
 
10 Hawaii health systems corporation, the department of commerce and
 
11 consumer affairs in prosecution of consumer complaints, insurance
 
12 division, the Maui regional health systems corporation, the
 
13 University of Hawaii, the Hawaiian home lands trust individual
 
14 claims review panel, or as grand jury counsel, shall be a deputy
 
15 attorney general."
 
16      SECTION 5.  Section 37-74, Hawaii Revised Statutes, is
 
17 amended by amending subsection (d) to read as follows:
 
18      "(d)  No appropriation transfers or changes between programs
 
19 or agencies shall be made without legislative authorization;
 
20 provided that:
 
21      (1)  Authorized transfers or changes, when made, shall be
 
22           reported to the legislature;
 
23      (2)  Except with respect to appropriations to fund financing
 

 
Page 31                                                    
                                     S.B. NO.           2344
                                                        
                                                        

 
 1           agreements under chapter 37D, the:
 
 2           (A)  University of Hawaii shall have the flexibility to
 
 3                transfer appropriated funds and positions for the
 
 4                operating cost category among programs, among cost
 
 5                elements in a program, and between quarters, as
 
 6                applicable; and [the]
 
 7           (B)  Hawaii health systems corporation and the Maui
 
 8                regional health systems corporation shall have the
 
 9                flexibility to transfer special fund
 
10                appropriations among their respective community
 
11                hospitals facilities as applicable; provided that
 
12                the Hawaii health systems corporation and the Maui
 
13                regional health systems corporation shall maintain
 
14                the integrity and services of each individual
 
15                facility within their own respective jurisdictions
 
16                and shall not transfer appropriations out of any
 
17                facility that would result in a reduction of
 
18                services offered by the facility, with due regard
 
19                for statutory requirements, changing conditions,
 
20                the needs of the programs, and the effective
 
21                utilization of resources; and
 
22      (3)  The university shall account for each transfer
 
23           implemented under this subsection in quarterly reports
 

 
Page 32                                                    
                                     S.B. NO.           2344
                                                        
                                                        

 
 1           to the governor and annual reports at the end of each
 
 2           fiscal year to the legislature and the governor, which
 
 3           shall be prepared in the form and manner prescribed by
 
 4           the governor and shall include information on the
 
 5           sources and uses of the transfer."
 
 6      SECTION 6.  Section 76-3, Hawaii Revised Statutes, is
 
 7 amended to read as follows:
 
 8      "§76-3 Uniform administration.  It is the intent of the
 
 9 legislature that the system of personnel administration
 
10 established by this chapter and chapter 77 shall be as uniformly
 
11 administered as is practicable.  In order to promote such
 
12 uniformity, the several commissioners and directors of the state
 
13 department of human resources development and of the county
 
14 departments of civil service [and], the administrative director
 
15 of the courts, [and] the Hawaii health systems corporation chief
 
16 executive officer's designee, and the Maui regional health
 
17 systems corporation chief executive officer's designee shall meet
 
18 at least once each year at the call of the director of human
 
19 resources development of the State."
 
20      SECTION 7.  Section 76-4, Hawaii Revised Statutes, is
 
21 amended to read as follows:
 
22      "§76-4 Agreements of state, county departments, judiciary,
 
23 [and] the Hawaii health systems corporation[.], and the Maui
 

 


 

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                                     S.B. NO.           2344
                                                        
                                                        

 
 1 regional health systems corporation.  The state department of
 
 2 human resources development, the judiciary, the several
 
 3 departments of civil service of the counties, [and] the Hawaii
 
 4 health systems corporation, and the Maui regional health systems
 
 5 corporation, may enter into agreements for the joint
 
 6 administration of matters that may be practicable and consistent
 
 7 with this chapter and chapter 77, including the conducting of
 
 8 examinations and other procedures for the establishment and use
 
 9 of eligible lists, reciprocity in the use of eligible lists, and
 
10 the conducting of salary studies.  All eligible lists established
 
11 or used under the agreements shall be as fully effective as those
 
12 established or used separately."
 
13      SECTION 8.  Section 76-5, Hawaii Revised Statutes, is
 
14 amended to read as follows:
 
15      "§76-5 Furnishing of services and facilities.  Subject to
 
16 the rules of the state department of human resources development,
 
17 the director of human resources development may enter into
 
18 agreements with the judiciary, any county, [and] the Hawaii
 
19 health systems corporation, and the Maui regional health systems
 
20 corporation to furnish services and facilities of the state
 
21 department to the judiciary, any county, [and] the Hawaii health
 
22 systems corporation, and the Maui regional health systems
 
23 corporation in the administration of civil service including
 

 
Page 34                                                    
                                     S.B. NO.           2344
                                                        
                                                        

 
 1 position classification in the judiciary, any county, [and] the
 
 2 Hawaii health systems corporation[.], and the Maui regional
 
 3 health systems corporation.  The agreements may provide for the
 
 4 reimbursement to the State of the reasonable value of the
 
 5 services and facilities furnished, as determined by the director.
 
 6 The judiciary, all counties, [and] the Hawaii health systems
 
 7 corporation, and the Maui regional health systems corporation are
 
 8 authorized to enter into the agreements."
 
 9      SECTION 9.  Section 76-5.5, Hawaii Revised Statutes, is
 
10 amended to read as follows:
 
11      "§76-5.5  Recruitment flexibility for the counties, the
 
12 judiciary, [and] the Hawaii health systems corporation[.], and
 
13 the Maui regional health systems corporation.  Notwithstanding
 
14 section 76-23, or any other provision to the contrary, the
 
15 directors of the county departments of civil service, the
 
16 administrative director of the courts, [and] the Hawaii health
 
17 systems corporation chief executive officer's designee, and the
 
18 Maui regional health systems corporation chief executive
 
19 officer's designee may determine, establish, and maintain the
 
20 manner in which positions shall be filled in accordance with
 
21 section 78-1 and the following standards:
 
22      (1)  Equal opportunity for all regardless of race, sex, age,
 
23           religion, color, ancestry, physical handicap, or
 

 
Page 35                                                    
                                     S.B. NO.           2344
                                                        
                                                        

 
 1           politics;
 
 2      (2)  First consideration for competent employees already
 
 3           within public service; and
 
 4      (3)  Impartial selection of the ablest person through
 
 5           competitive means which are fair, objective, and
 
 6           practical."
 
 7      SECTION 10.  Section 77-1, Hawaii Revised Statutes, is
 
 8 amended by amending the definitions of "chief executive officer",
 
 9 "department", "director", and "fiscal officer", to read as
 
10 follows:
 
11      ""Chief executive officer" means the governor in the case of
 
12 the State, the chief justice of the supreme court in the case of
 
13 the judiciary, the respective chief executive [officer] officers
 
14 in the case of the Hawaii health systems corporation[,] and the
 
15 Maui regional health systems corporation, or the mayor in the
 
16 case of the city and county of Honolulu or the counties of
 
17 Hawaii, Maui, and Kauai.
 
18      "Department" includes the judicial branch, the Hawaii health
 
19 systems corporation, the Maui regional health systems
 
20 corporation, and any department, board, commission, or agency of
 
21 the State or any of its political subdivisions.
 
22      "Director" means the director of human resources development
 
23 in the case of the State, the administrative director of the
 

 
Page 36                                                    
                                     S.B. NO.           2344
                                                        
                                                        

 
 1 courts in the case of the judiciary, the respective chief
 
 2 executive [officer] officers in the case of the Hawaii health
 
 3 systems corporation[,] and the Maui regional health systems
 
 4 corporation. the director of civil service in the case of the
 
 5 city and county of Honolulu, or the respective personnel
 
 6 directors in the case of the counties of Hawaii, Maui, and Kauai.
 
 7      "Fiscal officer" means the director of finance in the case
 
 8 of the State, the administrative director of the courts in the
 
 9 case of the judiciary, the respective chief executive [officer]
 
10 officers in the case of the Hawaii health systems corporation[,]
 
11 and the Maui regional health systems corporation. or the director
 
12 of finance in the case of the city and county of Honolulu and the
 
13 counties of Hawaii, Maui, and Kauai."
 
14      SECTION 11.  Section 77-2.5, Hawaii Revised Statutes, is
 
15 amended to read as follows:
 
16      "§77-2.5  Applicability of chapter to the judiciary [and],
 
17 the Hawaii health systems corporation[.], and the Maui regional
 
18 health systems corporation.  All of the provisions of this
 
19 chapter apply with equal force to the judiciary [and], the Hawaii
 
20 health systems corporation, and the Maui regional health systems
 
21 corporation as to the State."
 
22      SECTION 12.  Section 77-13, Hawaii Revised Statutes, is
 
23 amended by amending subsection (d) to read as follows:
 

 
Page 37                                                    
                                     S.B. NO.           2344
                                                        
                                                        

 
 1      "(d)  Salary ranges SC-1, SC-2, and SC-3 shall be utilized
 
 2 in the following manner:
 
 3      (1)  Salary ranges SC-1, SC-2, and SC-3 may be utilized by
 
 4           the State, the judiciary, counties, [and] the Hawaii
 
 5           health systems corporation, and the Maui regional
 
 6           health systems corporation for physician and
 
 7           psychiatrist positions;
 
 8      (2)  No position shall be classified and paid in salary
 
 9           ranges SC-1, SC-2, and SC-3 unless specifically
 
10           recommended by the director of human resources
 
11           development and approved by the governor, recommended
 
12           by the administrative director of the courts and
 
13           approved by the chief justice, [or] recommended by the
 
14           personnel director of a county and approved by the
 
15           council and mayor, or recommended by the respective
 
16           chief executive officer's designees of the Hawaii
 
17           health systems corporation [chief executive officer's
 
18           designee] and the Maui regional health systems
 
19           corporation and approved by the respective chief
 
20           executive [officer;] officers;
 
21      (3)  There shall be at any given period not more than
 
22           sixteen positions classified and paid in salary ranges
 
23           SC-1, SC-2, and SC-3 by the State, not more than two
 

 
Page 38                                                    
                                     S.B. NO.           2344
                                                        
                                                        

 
 1           positions classified and paid in salary ranges SC-1,
 
 2           SC-2, and SC-3 by the judiciary, and not more than
 
 3           eight positions classified and paid in salary ranges
 
 4           SC-1, SC-2, and SC-3 by any county.  Psychiatrist and
 
 5           physician positions shall be excluded from the above-
 
 6           mentioned totals; and
 
 7      (4)  The director of human resources development, the
 
 8           administrative director of the courts, and the
 
 9           personnel directors of each county shall report
 
10           annually to the legislature as to the manner in which
 
11           the positions assigned to salary ranges SC-1, SC-2, and
 
12           SC-3 are being used."
 
13      SECTION 13.  Section 77-13.1, Hawaii Revised Statutes, is
 
14 amended to read as follows:
 
15      "§77-13.1  Compensation plan for managerial white-collar
 
16 positions.(a)  The chief executives of the State and counties,
 
17 the chief justice of the supreme court, [and] the Hawaii health
 
18 systems corporation chief executive officer, and the Maui
 
19 regional health systems corporation chief executive officer shall
 
20 determine which white-collar positions under this chapter are
 
21 managerial; provided that no position shall be designated as
 
22 managerial unless or until the employee occupying such position
 
23 has been excluded from coverage under chapter 89.
 

 
Page 39                                                    
                                     S.B. NO.           2344
                                                        
                                                        

 
 1      (b)  The salary structure for managerial white-collar
 
 2 positions covered under this chapter shall be comprised of such
 
 3 number of salary ranges with each range consisting of such number
 
 4 of steps as the chief executives of the State and counties, the
 
 5 chief justice of the supreme court, [and] the Hawaii health
 
 6 systems corporation, and the Maui regional health systems
 
 7 corporation deem appropriate under the provisions set forth in
 
 8 chapter 89C.
 
 9      (c)  The salary schedule applicable to employees in
 
10 managerial white-collar positions shall be subject to chapter
 
11 89C."
 
12      SECTION 14.  Section 78-51, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "§78-51  Applicability of chapter to the judiciary [and],
 
15 the Hawaii health systems corporation[.], and the Maui regional
 
16 health systems corporation.  All of the provisions of this
 
17 chapter apply with equal force to the judiciary [and], the Hawaii
 
18 health systems corporation, and the Maui regional health systems
 
19 corporation as to the State.  The powers and duties assigned in
 
20 this chapter shall, with respect to the judiciary, be assigned to
 
21 the chief justice of the supreme court in the place and stead of
 
22 the governor or chief executive officer for the State, and to the
 
23 administrative director of the courts in the place and stead of
 

 
Page 40                                                    
                                     S.B. NO.           2344
                                                        
                                                        

 
 1 the director of human resources development.  The powers and
 
 2 duties assigned in this chapter, with respect to the Hawaii
 
 3 health systems corporation, shall be assigned to the chief
 
 4 executive officer of the Hawaii health systems corporation in the
 
 5 place and stead of the governor or chief executive officer for
 
 6 the State, and to the Hawaii health systems chief executive
 
 7 officer's designee in the place and stead of the director of
 
 8 human resource development.  The powers and duties assigned in
 
 9 this chapter, with respect to the Maui regional health systems
 
10 corporation, shall be assigned to the chief executive officer of
 
11 the Maui regional health systems corporation in the place and
 
12 stead of the governor or chief executive officer for the State,
 
13 and to the Maui regional health systems chief executive officer's
 
14 designee in the place and stead of the director of human resource
 
15 development."
 
16      SECTION 15.  Section 79-31, Hawaii Revised Statutes, is
 
17 amended to read as follows:
 
18      "§79-31  Judiciary [and], the Hawaii health systems
 
19 corporation[;], and the Maui regional health systems corporation;
 
20 powers and duties.  All of the powers and duties assigned in this
 
21 chapter to the governor or the director of human resources
 
22 development, with respect to the judiciary, shall be assigned to
 
23 the chief justice of the supreme court or the administrative
 

 
Page 41                                                    
                                     S.B. NO.           2344
                                                        
                                                        

 
 1 director of the courts, and with respect to the Hawaii health
 
 2 systems corporation[,] and the Maui regional health systems
 
 3 corporation, shall be assigned to the respective chief executive
 
 4 [officer] officers or designees of the Hawaii health systems
 
 5 corporation [or designee.] and the Maui regional health systems
 
 6 corporation."
 
 7      SECTION 16.  Section 80-21, Hawaii Revised Statutes, is
 
 8 amended to read as follows:
 
 9      "§80-21  Judiciary [and], the Hawaii health systems
 
10 corporation[;], and the Maui regional health systems corporation;
 
11 powers and duties.  All of the powers and duties assigned in this
 
12 chapter to the governor or the department or director of human
 
13 resources development, with respect to the judiciary, shall be
 
14 assigned to the chief justice of the supreme court or the
 
15 administrative director of the courts, and with respect to the
 
16 Hawaii health systems corporation[,] and the Maui regional health
 
17 systems corporation, shall be assigned to the respective chief
 
18 executive [officer] officers or designees of the Hawaii health
 
19 systems corporation [or designee.] and the Maui regional health
 
20 systems corporation."
 
21      SECTION 17.  Section 81-21, Hawaii Revised Statutes, is
 
22 amended to read as follows:
 
23      "§81-21  Judiciary [and], the Hawaii health systems
 

 


 

Page 42                                                    
                                     S.B. NO.           2344
                                                        
                                                        

 
 1 corporation[;], and the Maui regional health systems corporation;
 
 2 powers and duties.  All of the powers and duties assigned in this
 
 3 chapter to the governor or the director of human resources
 
 4 development, with respect to the judiciary, shall be exercised by
 
 5 the chief justice of the supreme court or the administrative
 
 6 director of the courts, and with respect to the Hawaii health
 
 7 systems corporation[,] and the Maui regional health systems
 
 8 corporation, shall be assigned to the respective chief executive
 
 9 [officer] officers or designees of the Hawaii health systems
 
10 corporation [or designee.] and the Maui regional health systems
 
11 corporation."
 
12      SECTION 18.  Section 83-4, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "§83-4 Judiciary [and], the Hawaii health systems
 
15 corporation[;], and the Maui regional health systems corporation;
 
16 powers and duties.  All of the powers and duties assigned in this
 
17 chapter to the governor or the director of human resources
 
18 development, with respect to the judiciary, shall be exercised by
 
19 the chief justice of the supreme court or the administrative
 
20 director of the courts, and with respect to the Hawaii health
 
21 systems corporation[,] and the Maui regional health systems
 
22 corporation, shall be assigned to the respective chief executive
 
23 [officer] officers or designees of the Hawaii health systems
 

 
Page 43                                                    
                                     S.B. NO.           2344
                                                        
                                                        

 
 1 corporation [or designee.] and the Maui regional health systems
 
 2 corporation."
 
 3      SECTION 19.  It is the intent of this Act that all rights,
 
 4 powers, functions, assets, and operations of the Hawaii health
 
 5 systems corporation, with respect only to Kula Hospital, Lanai
 
 6 Community Hospital, and Maui Memorial Hospital, including the
 
 7 facilities themselves, be conveyed to the Maui regional health
 
 8 systems corporation, such that all of the activities and services
 
 9 of Kula Hospital, Lanai Community Hospital, and Maui Memorial
 
10 Hospital be continued without interruption by the Maui regional
 
11 health systems corporation.  This Act shall be construed with
 
12 this intent.
 
13      All rights, powers, functions, and duties of the Hawaii
 
14 health systems corporation, with respect only to Kula Hospital,
 
15 Lanai Community Hospital, and Maui Memorial Hospital, are
 
16 transferred to the Maui regional health systems corporation on
 
17 July 1, 2000.
 
18      The assets, including but not limited to hospital funds
 
19 relating to Kula Hospital, Lanai Community Hospital, and Maui
 
20 Memorial Hospital, and the facilities themselves, shall be
 
21 conveyed to the Maui regional health systems corporation in its
 
22 own name by the Hawaii health systems corporation on July 1,
 
23 2000.
 

 
Page 44                                                    
                                     S.B. NO.           2344
                                                        
                                                        

 
 1      Effective on July 1, 2000, and thereafter, the Maui regional
 
 2 health systems corporation shall assume the responsibility of the
 
 3 Hawaii health systems corporation, with respect only to Kula
 
 4 Hospital, Lanai Community Hospital, and Maui Memorial Hospital,
 
 5 for all contracts, agreements, and leases for commodities,
 
 6 services, property, and supplies utilized by the Hawaii health
 
 7 systems corporation, all of which shall be transferred to the
 
 8 Maui regional health systems corporation including real property
 
 9 leases.
 
10      All officers and employees whose functions are transferred
 
11 by this Act shall be transferred with their functions and shall
 
12 continue to perform their regular duties upon their transfer,
 
13 subject to the state personnel laws and this Act.
 
14      No officer or employee of the State having tenure shall
 
15 suffer any loss of salary, seniority, prior service credit,
 
16 vacation, sick leave, or other employee benefit or privilege as a
 
17 consequence of this Act, and such officer or employee may be
 
18 transferred or appointed to a civil service position without the
 
19 necessity of examination; provided that the officer or employee
 
20 possesses the minimum qualifications for the position to which
 
21 transferred or appointed; and provided that subsequent changes in
 
22 status may be made pursuant to applicable civil service and
 
23 compensation laws.
 

 
Page 45                                                    
                                     S.B. NO.           2344
                                                        
                                                        

 
 1      An officer or employee of the State who does not have tenure
 
 2 and who may be transferred or appointed to a civil service
 
 3 position as a consequence of this Act, shall become a civil
 
 4 service employee without the loss of salary, seniority, prior
 
 5 service credit, vacation, sick leave, or other employee benefits
 
 6 or privileges and without the necessity of examination; provided
 
 7 that such officer or employee possesses the minimum
 
 8 qualifications for the position to which transferred or
 
 9 appointed.
 
10      If an office or position held by an officer or employee
 
11 having tenure is abolished, the officer or employee shall not
 
12 thereby be separated from public employment, but shall remain in
 
13 the employment of the executive branch of the State with the same
 
14 pay and classification and shall be transferred to some other
 
15 office or position for which the officer or employee is eligible
 
16 under the personnel laws of the State, provided that minimum
 
17 qualifications are met.
 
18      Any officer or employee transferred to the Maui regional
 
19 health systems corporation pursuant to this section who is a
 
20 member of or benefits under any existing pension or retirement
 
21 fund or system shall continue to have all rights, privileges,
 
22 obligations, and status with respect to such fund or system as
 
23 are now prescribed by law, but during the period of employment by
 

 
Page 46                                                    
                                     S.B. NO.           2344
                                                        
                                                        

 
 1 the Maui regional health systems corporation, all contributions
 
 2 to such funds or system to be paid by the employer on account of
 
 3 such officer or employee shall be paid by the Maui regional
 
 4 health systems corporation.
 
 5      SECTION 20.  All appropriations, records, equipment,
 
 6 machines, files, supplies, contracts, books, papers, documents,
 
 7 maps, and other personal property heretofore made, used,
 
 8 acquired, or held by the Hawaii health systems corporation
 
 9 relating to the functions transferred to the Maui regional health
 
10 systems corporation shall be transferred with the functions to
 
11 which they relate.
 
12      SECTION 21.  (a)  The Maui regional health systems
 
13 corporation, in carrying out its duties and responsibilities, may
 
14 enter into appropriate agreements with the Hawaii health systems
 
15 corporation, if necessary, to utilize the Maui health facilities
 
16 and real property under the control of the Hawaii health systems
 
17 corporation prior to July 1, 2000.  Each agreement shall require
 
18 compensation of a nominal amount for the use of any facilities or
 
19 real property.  Until the agreements are finalized, the Maui
 
20 regional health systems corporation shall be entitled to use the
 
21 facilities and real property of the Hawaii health systems
 
22 corporation, with respect only to Kula Hospital, Lanai Community
 
23 Hospital, and Maui Memorial Hospital, for hospital and health
 

 
Page 47                                                    
                                     S.B. NO.           2344
                                                        
                                                        

 
 1 care purposes.
 
 2      (b)  State agencies shall continue to provide to the Maui
 
 3 regional health systems corporation, without charge until
 
 4 December 31, 2000, services that the state agencies provided to
 
 5 the Hawaii health systems corporation until the Maui regional
 
 6 health systems corporation enters into a written contract with
 
 7 the state agencies or chooses to terminate the services.
 
 8      (c)  The Maui regional health systems corporation shall
 
 9 assume and honor all collective bargaining agreements applicable
 
10 to employees of the Hawaii health systems corporation, with
 
11 respect only to Kula Hospital, Lanai Community Hospital, and Maui
 
12 Memorial Hospital, as of July 1, 2000.  Upon expiration of those
 
13 agreements, the Maui regional health systems corporation, as
 
14 appropriate and allowable, may negotiate collective bargaining
 
15 agreements or sub-agreements under chapter 89, Hawaii Revised
 
16 Statutes, to address its needs for efficiency and effectiveness.
 
17      (d)  On July 1, 2000, the Maui regional health systems
 
18 corporation shall assume and honor all responsibilities and
 
19 obligations transferred to it from the Hawaii health systems
 
20 corporation, with respect only to Kula Hospital, Lanai Community
 
21 Hospital, and Maui Memorial Hospital, regarding the imposition of
 
22 rates, rents, fees, and charges for the use of public health
 
23 facilities pursuant to section 323-70, Hawaii Revised Statutes.
 

 
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 1 In no way shall this Act be construed as allowing either the Maui
 
 2 regional health systems corporation or the Hawaii health systems
 
 3 corporation to abrogate these responsibilities and obligations.
 
 4                              Part II
 
 5      SECTION 22.  Section 323F-2, Hawaii Revised Statutes, is
 
 6 amended to read as follows:
 
 7      "[[]§323F-2[]]  Hawaii health systems corporation.  (a)
 
 8 There is established the Hawaii health systems corporation, which
 
 9 shall be a public body corporate and politic and an
 
10 instrumentality and agency of the State.  The corporation shall
 
11 be placed within the department of health for the administrative
 
12 purposes specified in section 26-35(6) only.
 
13      (b)  The corporate organization shall be divided into [five]
 
14 four regions, as follows:
 
15      (1)  The city and county of Honolulu;
 
16      (2)  The county of Kauai;
 
17     [(3)  The county of Maui, except the county of Kalawao;
 
18      (4)] (3)  The eastern section of the county of Hawaii,
 
19           comprising the Puna district, north Hilo district,
 
20           south Hilo district, Hamakua district, and Kau
 
21           district; and
 
22     [(5)] (4)  The western section of the county of Hawaii,
 
23           comprising the north Kohala district, south Kohala
 

 
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 1           district, north Kona district, and south Kona district;
 
 2 and shall be identified as regions I, II, III, and IV[, and V],
 
 3 respectively.
 
 4      (c)  Pursuant to chapter      , Kula Hospital, Lanai
 
 5 Community Hospital, and Maui Memorial Hospital are not health
 
 6 facilities within the corporation and this chapter shall not
 
 7 apply to these three facilities."
 
 8      SECTION 23.  Section 323F-3, Hawaii Revised Statutes, is
 
 9 amended by amending subsections (a) and (b) to read as follows:
 
10      "(a)  The corporation shall be governed by [a thirteen-
 
11 member] an eleven-member board of directors which shall carry out
 
12 the duties and responsibilities of the corporation.
 
13      (b)  [Twelve] Ten members of the corporation board shall be
 
14 appointed by the governor as follows:
 
15      (1)  One member from region I who resides in the city and
 
16           county of Honolulu;
 
17      (2)  One member from region II who resides in the county of
 
18           Kauai;
 
19     [(3)  One member from region III who resides in the county of
 
20           Maui;
 
21      (4)] (3)  One member from region [IV] III who resides in the
 
22           eastern section of the county of Hawaii;
 
23     [(5)] (4)  One member from region [V] IV who resides in the
 

 
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 1           western section of the county of Hawaii;
 
 2     [(6)] (5)  One member from region II who resides in the
 
 3           county of Kauai or [from region III] who resides in the
 
 4           district of Hana [or on the island of Lanai]; provided
 
 5           that in no event shall the member be appointed from the
 
 6           same region for two consecutive terms; and
 
 7     [(7)] (6)  [Six] Five at-large members who reside in the
 
 8           State.
 
 9      The [thirteenth] eleventh member shall be the director of
 
10 health or the director's designee, who shall serve as an ex
 
11 officio, voting member.
 
12      Appointments to the corporation board shall be made by the
 
13 governor, subject to confirmation by the senate pursuant to
 
14 section 26-34.  Prior to the transfer date, the public health
 
15 facility management advisory committees appointed pursuant to
 
16 section 323-66 for each county may recommend names to the
 
17 governor for each position on the corporation board designated
 
18 for a region which corresponds to its county.  After the transfer
 
19 date, the public health facility management advisory committees
 
20 appointed pursuant to section 323F-10 for each region may make
 
21 such recommendations to the governor.  The appointed board
 
22 members shall serve for a term of four years; provided that upon
 
23 the initial appointment of the first ten members:
 

 
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 1      (1)  Two at-large members shall be appointed for a term of
 
 2           two years;
 
 3      (2)  Three at-large members shall be appointed for a term of
 
 4           three years; and
 
 5      (3)  Five regional members shall be appointed for a term of
 
 6           four years.
 
 7 Any vacancy shall be filled in the same manner provided for the
 
 8 original appointments.  The corporation board shall elect its own
 
 9 chair from among its members."
 
10      SECTION 24.  All acts passed prior to or during this Regular
 
11 Session of 2000, whether enacted before or after the passage of
 
12 this Act shall be interpreted to conform to this Act, unless the
 
13 acts specifically provide that this Act is being amended.  In so
 
14 far as this chapter is inconsistent with the provisions of any
 
15 other law, this chapter shall be controlling.
 
16      SECTION 25.  Statutory material to be repealed is bracketed.
 
17 New statutory material is underscored.
 
18      SECTION 26.  This Act shall take effect on July 1, 2000 and
 
19 sections 1, 2, 3, and 19 through 21 shall be repealed on June 30,
 
20 2005; provided that:
 
21      (1)  Section 28-8.3, Hawaii Revised Statutes, as amended in
 
22           section 4, section 37-74, Hawaii Revised Statutes, as
 
23           amended in section 5, sections 76-3, 76-4, 76-5,
 

 
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 1           76-5.5, 77-1, 77-2.5, 77-13, 77-13.1, 78-51, 79-31,
 
 2           80-21, 81-21, and 83-4, Hawaii Revised Statutes, as
 
 3           amended in sections 6 through 18, and sections 323F-2
 
 4           and 323F-3, Hawaii Revised Statutes, as amended by
 
 5           sections 22 and 23 of this Act, shall be reenacted in
 
 6           the form in which they read on June 30, 2000;
 
 7      (2)  The Maui regional health systems corporation shall be
 
 8           dissolved on June 30, 2005;
 
 9      (3)  All health systems assets and health systems
 
10           liabilities of the Maui regional health systems
 
11           corporation that are transferred by this Act, with
 
12           respect to Kula Hospital, Lanai Community Hospital, and
 
13           Maui Memorial Hospital, shall be transferred back to
 
14           the Hawaii health systems corporation on June 30, 2005;
 
15           and
 
16      (4)  All related transfers of rights, powers, functions, and
 
17           duties, officers, appropriations, records, equipment,
 
18           machines, files, supplies, contracts, books, papers,
 
19           documents, maps, and other personal property that are
 

 
 
 
 
 
 
 
 
 
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 1           transferred by this Act shall be transferred back to
 
 2           the Hawaii health systems corporation on June 30, 2005.
 
 3 
 
 4                           INTRODUCED BY:  _______________________