STAND. COM. REP. NO.  513

Honolulu, Hawaii

                , 2013

RE:   H.B. No. 1484

      H.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1484, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII HEALTH SYSTEMS CORPORATION,"

begs leave to report as follows:

The purpose of this measure is to affirm the State's commitment to provide high-quality health care for the people of the State.

Specifically, the bill amends the structure and composition of the Hawaii Health Systems Corporation to increase flexibility for the Corporation and improve accountability and sustainability within the system.

     Among other things, this measure:

     (1)  Delineates the duties and powers of the Hawaii Health Systems Corporation and the regional system boards;

     (2)  Makes regional chief executive officers nonvoting members of the Hawaii Health Systems Corporation board of directors;

     (3)  Provides that the Hawaii Health Systems Corporation is the sole employer with collective bargaining negotiating authority;

     (4)  Establishes a separate personnel system for employees hired after July 1, 2014, and separate collective bargaining units for Hawaii Health Systems Corporation employees; and

     (5)  Repeals regional and executive public health facility management advisory committees.

The Hawaii State AFL-CIO and several private individuals testified in opposition to this measure.  The Hawaii Health Systems Corporation submitted comments.

     Your Committee has very grave concerns about moving this bill forward given the level of opposition to this measure.  However, your Committee would like to afford the Chair of the Committee on Health time to work with the interested parties to see if they can come to a mutual agreement on this measure.

     Your Committee has amended this measure by changing the effective date to July 1, 2112, to facilitate further discussion on the measure.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1484, H.D. 1, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as H.B. No. 1484, H.D. 2.

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

____________________________

ANGUS L.K. McKELVEY, Chair