REPORT TITLE:
HI Health Systems Corp.


DESCRIPTION:
Exempts the Hawaii health systems corporation from certain civil
service requirements for 5 years until 6/30/2005.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1898
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


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



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

 1      SECTION 1.  Chapter 89, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "89-     Collective bargaining and Hawaii health systems
 
 5 corporation:  scope of negotiations.  (a)  Notwithstanding any
 
 6 other law to the contrary, in any collective bargaining
 
 7 concerning employees of the Hawaii health systems corporation,
 
 8 the employer and the exclusive representative may negotiate in
 
 9 good faith with respect to wages, perquisites, benefits,
 
10 incentives, hours of work, leaves of absence, training programs,
 
11 the number of incremental and longevity steps and movement
 
12 between steps within the salary range, the amounts of
 
13 contributions to the Hawaii public employees health fund to the
 
14 extent allowed under subsection 89-9(e), and other terms and
 
15 conditions of employment that are embodied in a written agreement
 
16 between the employer and the exclusive representative.
 
17      (b)  Excluded from the scope of negotiations are matters of
 
18 classification and reclassification of employees, or matters
 
19 which could interfere with the rights of the employer to:
 
20      (1)  Direct employees;
 

 
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 1      (2)  Determine qualifications, standards of work, the nature
 
 2           and contents of examinations, to hire, promote,
 
 3           transfer, assign, and retain employees in positions and
 
 4           to suspend, demote, discharge, or take other
 
 5           disciplinary action against employees for proper cause;
 
 6      (3)  Relieve an employee from duties because of lack of work
 
 7           or other legitimate reason;
 
 8      (4)  Maintain efficiency of operations;
 
 9      (5)  Determine methods, means, and personnel by which the
 
10           employer's operations are to be conducted; and
 
11      (6)  Take such action as may be necessary to carry out the
 
12           mission of the employer;
 
13 provided that the employer and the exclusive representative may
 
14 negotiate procedures governing the promotion and transfer of
 
15 employees to positions within a bargaining unit, procedures
 
16 governing the suspension, demotion, discharge, or other
 
17 disciplinary actions taken against employees, and procedures
 
18 governing the layoff of employees; provided further that
 
19 violations of the negotiated procedures may be subject of a
 
20 grievance process agreed to by the employer and the exclusive
 
21 representative."
 
22      SECTION 2.  Chapter 323F, Hawaii Revised Statutes, is
 
23 amended by adding two new sections to be appropriately designated
 

 
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 1 and to read as follows:
 
 2      "323F-     Personnel system; exemptions; negotiated
 
 3 agreements.  (a)  The corporation shall develop a corporation-
 
 4 wide personnel system that is not subject to chapters 76, 77, 78,
 
 5 79, 80, 81, and 82.
 
 6      (b)  The wages, perquisites, benefits, incentives, hours of
 
 7 work, leaves of absence, and other conditions of employment for
 
 8 the employees of the corporation not inconsistent with the scope
 
 9 of negotiations in section 89-    shall be specified in the terms
 
10 of collective bargaining agreements reached between the
 
11 corporation and the appropriate bargaining units for bargaining
 
12 units       .
 
13      (c)  The negotiated agreements for Hawaii health systems
 
14 corporation employees shall be included as a subagreement in the
 
15 collective bargaining agreements for units (1), (2), (3), (4),
 
16 (9), (10), and (13).
 
17      323F-     Appeals.  Appeals from suspensions, dismissals,
 
18 and demotions not covered by collective bargaining may be
 
19 appealed by any person, employee, or the exclusive bargaining
 
20 unit representative to the Hawaii health systems corporation
 
21 personnel appeals board.  The board shall be composed of three
 
22 members, one from the department of human resources development,
 
23 one representative of the Hawaii health systems corporation, and
 

 
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 1 one appropriate exclusive bargaining unit representative.
 
 2 Section 26-34 shall not apply to the members of the Hawaii health
 
 3 systems corporation personnel appeals board.  The board shall sit
 
 4 as an appellate body on matters within the jurisdiction of the
 
 5 Hawaii health systems corporation."
 
 6      SECTION 3.  Section 77-1, Hawaii Revised Statutes, is
 
 7 amended by amending the definitions of "chief executive officer",
 
 8 "department", "director", and "fiscal officer" to read as
 
 9 follows:
 
10      "Chief executive officer" means the governor in the case of
 
11 the State, the chief justice of the supreme court in the case of
 
12 the judiciary, [the chief executive officer in the case of the
 
13 Hawaii health systems corporation,] the mayor in the case of the
 
14 city and county of Honolulu or the counties of Hawaii, Maui, and
 
15 Kauai.
 
16      "Department" includes the judicial branch, [the Hawaii
 
17 health systems corporation,] and any department, board,
 
18 commission, or agency of the State or any of its political
 
19 subdivisions.
 
20      "Director" means the director of human resources development
 
21 in the case of the State, the administrative director of the
 
22 courts in the case of the judiciary, [the chief executive officer
 
23 in the case of the Hawaii health systems corporation,] the
 

 
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 1 director of civil service in the case of the city and county of
 
 2 Honolulu, or the respective personnel directors in the case of
 
 3 the counties of Hawaii, Maui, and Kauai.
 
 4      "Fiscal officer" means the director of finance in the case
 
 5 of the State, the administrative director of the courts in the
 
 6 case of the judiciary, [the chief executive officer in the case
 
 7 of the Hawaii health systems corporation,] the director of
 
 8 finance in the case of the city and county of Honolulu and the
 
 9 counties of Hawaii, Maui, and Kauai."
 
10      SECTION 4.  Section 77-2.5, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "77-2.5  Applicability of chapter to the judiciary [and the
 
13 Hawaii health systems corporation].  All of the provisions of
 
14 this chapter apply with equal force to the judiciary [and the
 
15 Hawaii health systems corporation] as to the State."
 
16      SECTION 5.  Section 78-51, Hawaii Revised Statutes, is
 
17 amended to read as follows:
 
18      "78-51  Applicability of chapter to the judiciary [and the
 
19 Hawaii health systems corporation].  All of the provisions of
 
20 this chapter apply with equal force to the judiciary [and the
 
21 Hawaii health systems corporation] as to the State.  The powers
 
22 and duties assigned in this chapter shall, with respect to the
 
23 judiciary, be assigned to the chief justice of the supreme court
 

 
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 1 in the place and stead of the governor or chief executive officer
 
 2 for the State, and to the administrative director of the courts
 
 3 in the place and stead of the director of human resources
 
 4 development.  [The powers and duties assigned in this chapter,
 
 5 with respect to the Hawaii health systems corporation, shall be
 
 6 assigned to the chief executive officer of the Hawaii health
 
 7 systems corporation in the place and stead of the governor or
 
 8 chief executive officer for the State, and to the Hawaii health
 
 9 systems chief executive officer's designee in the place and stead
 
10 of the director of human resources development.]"
 
11      SECTION 6.  Section 79-31, Hawaii Revised Statutes, is
 
12 amended to read as follows:
 
13      "79-31  Judiciary [and the Hawaii health systems
 
14 corporation]; powers and duties.  All of the powers and duties
 
15 assigned in this chapter to the governor or the director of human
 
16 resources development, with respect to the judiciary, shall be
 
17 assigned to the chief justice of the supreme court or the
 
18 administrative director of the courts[, and with respect to the
 
19 Hawaii health systems corporation, shall be assigned to the chief
 
20 executive officer of the Hawaii health systems corporation or
 
21 designee]."
 
22      SECTION 7.  Section 80-21, Hawaii Revised Statutes, is
 
23 amended to read as follows:
 

 
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 1      "80-21  Judiciary [and the Hawaii health systems
 
 2 corporation]; powers and duties.  All of the powers and duties
 
 3 assigned in this chapter to the governor or the department or
 
 4 director of human resources development, with respect to the
 
 5 judiciary, shall be assigned to the chief justice of the supreme
 
 6 court or the administrative director of the courts[, and with
 
 7 respect to the Hawaii health systems corporation, shall be
 
 8 assigned to the chief executive officer of the Hawaii health
 
 9 systems corporation or designee]."
 
10      SECTION 8.  Section 81-21, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "81-21  Judiciary [and the Hawaii health systems
 
13 corporation]; powers and duties.  All of the powers and duties
 
14 assigned in this chapter to the governor or the director of human
 
15 resources development, with respect to the judiciary, shall be
 
16 exercised by the chief justice of the supreme court or the
 
17 administrative director of the courts[, and with respect to the
 
18 Hawaii health systems corporation, shall be assigned to the chief
 
19 executive officer of the Hawaii health systems corporation or
 
20 designee]."
 
21      SECTION 9.  Section 82-6, Hawaii Revised Statutes, is
 
22 amended to read as follows:
 
23      "82-6  Judiciary [and the Hawaii health systems
 

 


 

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 1 corporation]; powers and duties.  All of the powers and duties
 
 2 assigned in this chapter to the governor or the director of human
 
 3 resources development, with respect to the judiciary, shall be
 
 4 assigned to the chief justice of the supreme court or the
 
 5 administrative director of the courts[, and with respect to the
 
 6 Hawaii health systems corporation, shall be assigned to the chief
 
 7 executive officer of the Hawaii health systems corporation or a
 
 8 designee]."
 
 9      SECTION 10.  Section 83-4, Hawaii Revised Statutes, is
 
10 amended to read as follows:
 
11      "83-4 Judiciary [and the Hawaii health systems
 
12 corporation]; powers and duties.  All of the powers and duties
 
13 assigned in this chapter to the governor or the director of human
 
14 resources development, with respect to the judiciary, shall be
 
15 exercised by the chief justice of the supreme court or the
 
16 administrative director of the courts[, and with respect to the
 
17 Hawaii health systems corporation, shall be assigned to the chief
 
18 executive officer of the Hawaii health systems corporation or
 
19 designee]."
 
20      SECTION 11.  Section 89-2, Hawaii Revised Statutes, is
 
21 amended by amending the definitions of "employer" or "public
 
22 employer" to read as follows:
 
23      ""Employer" or "public employer" means the governor in the
 

 
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 1 case of the State, the respective mayors in the case of the city
 
 2 and county of Honolulu and the counties of Hawaii, Maui, and
 
 3 Kauai, the board of education in the case of the department of
 
 4 education, and the board of regents in the case of the University
 
 5 of Hawaii, the board of directors of the Hawaii health systems
 
 6 corporation in the case of the Hawaii health systems corporation,
 
 7 and any individual who represents one of these employers or acts
 
 8 in their interest in dealing with public employees.  In the case
 
 9 of the judiciary, the governor shall be the employer for the
 
10 purposes of this chapter."
 
11      SECTION 12.  Section 323F-7, Hawaii Revised Statutes, is
 
12 amended by amending subsection (a) to read as follows:
 
13      "(a)  Notwithstanding any other law to the contrary, the
 
14 corporation shall have and exercise the following duties and
 
15 powers:
 
16      (1)  Developing its own policies, procedures, and rules
 
17           necessary or appropriate to plan, operate, manage, and
 
18           control the system of public health facilities and
 
19           services without regard to chapter 91;
 
20      (2)  Evaluating the need for health facilities and services;
 
21      (3)  Entering into and performing any contracts, leases,
 
22           cooperative agreements, or other transactions
 
23           whatsoever that may be necessary or appropriate in the
 

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

 
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 1                other cooperative arrangements, with any public or
 
 2                private entity; provided that any corporation,
 
 3                venture, or relationship entered into under this
 
 4                section furthers the public interest; provided
 
 5                further that this paragraph shall not be construed
 
 6                to authorize the corporation to abrogate any
 
 7                responsibility or obligation under paragraph (15);
 
 8      (5)  Participating in and developing prepaid health care
 
 9           service and insurance programs and other alternative
 
10           health care delivery programs, including programs
 
11           involving the acceptance of capitated payments or
 
12           premiums that include the assumption of financial and
 
13           actuarial risk;
 
14      (6)  Executing, in accordance with all applicable bylaws,
 
15           rules, and laws, all instruments necessary or
 
16           appropriate in the exercise of any of the corporation's
 
17           powers;
 
18      (7)  Preparing and executing all corporation budgets,
 
19           policies, and procedures;
 
20      (8)  Setting rates and charges for all services provided by
 
21           the corporation without regard to 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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 1     (10)] (9)  Developing the corporation's capital and strategic
 
 2           plans;
 
 3    [(11)] (10)  Suing and being sued; provided that the
 
 4           corporation shall enjoy the same sovereign immunity
 
 5           available to the State;
 
 6    [(12)] (11)  Making and altering corporation board bylaws for
 
 7           its organization and management without regard to
 
 8           chapter 91;
 
 9    [(13)] (12)  Adopting rules, without regard to chapter 91,
 
10           governing the exercise of its powers and the
 
11           fulfillment of its purpose under this chapter;
 
12    [(14)] (13)  Entering into any contract or agreement
 
13           whatsoever, not inconsistent with this chapter or the
 
14           laws of this State, and authorizing the corporation
 
15           chief executive officer to enter into all contracts,
 
16           execute all instruments, and do all things necessary or
 
17           appropriate in the exercise of the powers granted in
 
18           this chapter, including securing the payment of bonds;
 
19    [(15)] (14)  Issuing revenue bonds subject to the approval of
 
20           the legislature; provided that all revenue bonds shall
 
21           be issued pursuant to part III, chapter 39;
 
22    [(16)] (15)  Reimbursing the state general fund for debt
 
23           service on general obligation bonds or reimbursable
 

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

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

 
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 1    [(25)] (24)  Approving medical staff bylaws, rules, and
 
 2           medical staff appointments and reappointments for all
 
 3           public health facilities, including without limitation,
 
 4           determining the conditions under which a health
 
 5           professional may be extended the privilege of
 
 6           practicing within a health facility, and adopting and
 
 7           implementing reasonable rules, without regard to
 
 8           chapter 91, for the credentialing and peer review of
 
 9           all persons and health professionals within the
 
10           facility;
 
11    [(26)] (25) (A)  Investing any funds not required for
 
12                immediate disbursement in property or in
 
13                securities that meet the standard for investments
 
14                established in chapter 88 as provided by the
 
15                corporation board; provided the investment assists
 
16                the corporation in carrying out its public
 
17                purposes; selling from time to time securities
 
18                thus purchased and held, and depositing any
 
19                securities in any bank or financial institution
 
20                within or without the State.  Any funds deposited
 
21                in a banking institution or in any depository
 
22                authorized in this section shall be secured in a
 
23                manner and subject to terms and conditions as the
 

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

 
 
 
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 1    [(27)] (26)  Entering into any agreement with the State
 
 2           including but not limited to contracts for the
 
 3           provision of goods, services, and facilities in support
 
 4           of the corporation's programs, and contracting for the
 
 5           provision of services to or on behalf of the State;
 
 6    [(28)] (27)  Having a seal and altering the same at pleasure;
 
 7    [(29)] (28)  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)] (29)  Developing internal policies and procedures for
 
14           the procurement of goods and services, consistent with
 
15           the goals of public accountability and public
 
16           procurement practices, but not subject to chapter 103D.
 
17           However, where possible, the corporation is encouraged
 
18           to use the provisions of chapter 103D; provided that
 
19           the use of one or more provisions of chapter 103D shall
 
20           not constitute a waiver of the exemption from chapter
 
21           103D and shall not subject the corporation to any other
 
22           provision of chapter 103D;
 
23    [(31)] (30)  Authorizing and establishing positions;
 

 
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 1    [(32)] (31)  Calling upon the attorney general for such legal
 
 2           services as the corporation may require; and
 
 3    [(33)] (32)  Having and exercising all rights and powers
 
 4           necessary or incidental to or implied from the specific
 
 5           powers granted in this chapter, which specific powers
 
 6           shall not be considered as a limitation upon any power
 
 7           necessary or appropriate to carry out the purposes and
 
 8           intent of this chapter.
 
 9      (b)  The corporation shall not be subject to chapters 36 to
 
10 38, 40, and 41D, except as otherwise provided in this chapter.
 
11      (c)  The duties and powers granted to the corporation may
 
12 not be used to enter into contractual or business relationships
 
13 which have the practical effect of allowing or are intended to
 
14 allow the private sector counterparts to replace existing
 
15 employee positions or responsibilities within the corporation or
 
16 its facilities; provided the corporation shall be allowed to
 
17 enter into such relationships to the extent and for the purposes
 
18 that the division of community hospitals could have done under
 
19 collective bargaining contracts which were in effect for the
 
20 1995-1996 fiscal year."
 
21      SECTION 13.  Section 323F-8, Hawaii Revised Statutes, is
 
22 amended by amending subsection (c) to read as follows:
 
23      "(c)  The corporation's chief executive officer or the chief
 

 
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 1 executive officer's designee may appoint, exempt from
 
 2 chapters 76, 77, and 89, hospital administrators, assistant
 
 3 administrators, directors of nursing, medical directors, and
 
 4 staff physicians, to facilitate the management of facilities
 
 5 within the corporation[; provided that directors of nursing
 
 6 appointed before July 1, 1998, may maintain their civil service
 
 7 status as provided in chapters 76 and 77, by so communicating in
 
 8 writing to the chief executive officer by October 31, 1998.
 
 9 Hospital administrators and assistant administrators appointed
 
10 before July 1, 1983, may maintain their permanent civil service
 
11 status as provided in chapters 76 and 77]."
 
12      SECTION 14.  All existing terms and conditions in collective
 
13 bargaining agreements applicable to the employees of the Hawaii
 
14 health systems corporation shall remain in effect until
 
15 collective bargaining agreements have been reached between the
 
16 corporation and appropriate bargaining units.
 
17      SECTION 15.  Statutory material to be repealed is bracketed.
 
18 New statutory material is underscored.
 
19      SECTION 16.  This Act shall take effect upon its approval;
 
20 provided that on June 30, 2005, sections 1 and 2 of this Act
 
21 shall be repealed, and sections 77-1, 77-2.5, 78-51, 79-31,
 
22 80-21, 81-21, 82-6, 83-4, 89-2, 323F-7, and 323F-8, Hawaii
 
23 Revised Statutes, are reenacted in the form in which they read on
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 the day before the approval of this Act.
 
 2 
 
 3                              INTRODUCED BY:______________________