STAND. COM. REP. NO. 502-20

Honolulu, Hawaii

, 2020

RE: H.B. No. 2630

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Labor & Public Employment, to which was referred H.B. No. 2630, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE TRANSITION OF THE OAHU REGIONAL HEALTH CARE SYSTEM FROM THE HAWAII HEALTH SYSTEMS CORPORATION INTO THE DEPARTMENT OF HEALTH,"

begs leave to report as follows:

The purpose of this measure is to provide for the transition of the health care facilities of the Oahu Region of the Hawaii Health Systems Corporation to the Department of Health by establishing:

(1) A date of June 30, 2022, for the transition; and

(2) A working group comprised of the Chair and Chief Executive Officer of the Oahu Regional Health Care System, Director of Health, representatives of the Department of Health, representatives of other state departments and agencies, and others.

Your Committee received testimony in support of this measure from the Department of Health, Hawaii Health Systems Corporation Board of Directors, and Oahu Regional Health Care System Board of Directors. Your Committee received comments on this measure from the Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO and United Public Workers, AFSCME, Local 646, AFL-CIO.

Your Committee finds that transition of the Hawaii Health Systems Corporation Oahu Regional Health Care System to the Department of Health will ensure the continued availability of long-term care beds for the State's aging population and facilitate more efficient use of Oahu Regional Health Care System facilities to address the need for additional behavioral health services such as mental health and substance abuse treatment.

Your Committee has amended this measure by:

(1) Increasing the membership of the working group to include:

(A) Additional Department of Health staff as deemed necessary by the Director of Health, or the Director's designee;

(B) One or more Oahu Regional Health Care System staff as deemed necessary by the Chief Executive Officer of the Oahu Regional Health Care System, or the Chief Executive Officer's designee;

(D) One representative of an affected community to be selected by the Director of Health;

(2) Specifying that the Director of Health, or the Director's designee, along with the Chair of the Oahu Regional Health Care System, or the Chair's designee, shall have final authority over transfer activities to be implemented by the working group;

(3) Making the transition plan subject to an additional condition in which the wages, hours, and other conditions of employment shall be negotiated or consulted, as applicable, with the respective exclusive representative of the affected employees in accordance with the Collective Bargaining in Public Employment Law;

(4) Requiring the working group to give written public notice, including a meeting agenda, for each meeting of the working group;

(5) Prohibiting the impairment or diminishment of the rights, benefits, and privileges of Oahu Regional Health Care System employees being transitioned to the Department of Health;

(6) Changing the effective date of part II of the measure to January 1, 2050, to encourage further discussion; and

(7) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

Your Committee notes that the composition of the working group is not solely limited to the individuals specified in the measure.

As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2630, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.B. No. 2630, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

____________________________

AARON LING JOHANSON, Chair