Report Title:

Employees' Retirement System; Hawaii Health Systems Corporation

 

Description:

Defers reimbursement payments to the State by the Hawaii health systems corporation (HHSC) for employer contributions to the employees' retirement system funds for 5 years from 07/01/2009 to 06/30/2014.  Requires HHSC to reimburse the director of finance the total amount deferred no later than an unspecified date.

 

THE SENATE

S.B. NO.

41

TWENTY-FIFTH LEGISLATURE, 2009

 

STATE OF HAWAII

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to the employees' retirement system.

 

 

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

 

Part I

     SECTION 1.  The legislature finds that the Hawaii health systems corporation faces fiscal challenges amounting to a projected deficit of $62,000,000 for fiscal year 2008-2009 in addition to an estimated shortfall of over $35,000,000 in fiscal year 2009-2010.  This situation presents a potential crisis that may seriously affect the delivery of health care to Hawaii's residents by community hospitals statewide, especially health facilities on the neighbor islands.

     The purpose of this Act is to safeguard the delivery of health care through the statewide community hospitals to all Hawaii residents by supporting the operations of the Hawaii health systems corporation by deferring its payments into the employees' retirement system funds for a period of five years while the corporation conducts a major statewide reorganization to improve its operations and delivery of health care.

     SECTION 2.  Section 88-125, Hawaii Revised Statutes, is amended to read as follows:

     "§88-125  Contributions by certain state agencies.  (a)  Each of the departments and agencies hereinafter described [and], the office of Hawaiian affairs, and the Hawaii health systems corporation shall reimburse the State for the respective amounts payable by the State to cover the liability of the State to the various funds of the system on account of the employees in [such] the departments and agencies [and], the trustees of the office of Hawaiian affairs[.], and the employees of the Hawaii health systems corporation.  This provision shall apply to any department or agency of the State [which] that is authorized by law to fix, regulate, and collect rents, rates, fees, or charges of any nature.  [The provisions herein] This subsection shall not apply as to rental units receiving federal subsidies until approval has been obtained from the appropriate federal agency.

     (b)  Whenever any department or agency of the State or the Hawaii health systems corporation receives federal-aid funds [which] that may be expended for the purpose of covering the liability of the State to the various funds of the system, the department or agency or the Hawaii health systems corporation shall set aside a portion of these funds sufficient to cover the amount of the State's liability to the various funds of the system on account of the employees in the department or agency or the Hawaii health systems corporation whose compensation is paid in whole or part from federal funds.

     (c)  The amount payable by each department or agency of the State, [or] the office of Hawaiian affairs, or the Hawaii health systems corporation, covered by this section shall be determined at least quarterly by the department of budget and finance on the basis of the payroll of the employees of the department or agency, [or] trustees of the office of Hawaiian affairs, or the Hawaii health systems corporation who are members of the system in the same manner the allocation of employer contributions is determined in section 88-123.  The comptroller of the State, the office of Hawaiian affairs, the Hawaii health systems corporation, or any department or agency having control of its own funds [shall], upon information furnished by the department of budget and finance, shall issue a check for the proper amount to the director of finance, charging the same to the appropriate fund.  The director of finance shall place all such sums to the credit of the State as part payment of the State's contributions to the various funds of the system.

     (d)  With respect to the Hawaii health systems corporation only, this section shall not be operative between July 1, 2009 and June 30, 2014.  The Hawaii health systems corporation shall reimburse the director of finance for the total amount of contributions deferred between the period July 1, 2009 and June 30, 2014 no later than             ."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

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