STAND. COM. REP. NO. 1195

Honolulu, Hawaii

RE: S.B. No. 816

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 816, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF HEALTH,"

begs leave to report as follows:

The purpose and intent of this measure is to authorize the issuance of general obligation bonds and appropriate funds for facilities improvements and renovations for the Hawaii Health Systems Corporation.

Prior to a hearing on the measure, a proposed Senate Draft No. 2 (Proposed Draft) was circulated for public review and comment.

The purpose of the Proposed Draft is to delete the contents of the S.D. 1 and replace it with a general fund appropriation of $2,700,000 to the Hawaii Health Systems Corporation to resolve the compensation differential for union members who were affected by the transfer of the use and exclusive management and operations of the Maui Memorial Medical Center, Kula Hospital, and Lanai Community Hospital from the Hawaii Health Systems Corporation to Maui Health System, an affiliate of Kaiser Permanente.

Your Committee received testimony in support of the Proposed Draft from the United Public Workers.

Your Committee received testimony in opposition to the Proposed Draft from the League of Women Voters of Hawaii and one individual.

Your Committee finds that an appropriation for operating expenditures, rather than an authorization for the issuance of general obligation bonds, is better suited to the current needs of the Hawaii Health Systems Corporation with regard to the Maui Health System.

Your Committee has amended this measure by adopting the Proposed Draft and further amending the measure by changing the appropriated amount in the Proposed Draft to $1,706,250.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 816, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 816, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair