REPORT TITLE:
Hawaii Health Systems


DESCRIPTION:
Creates an endowment fund for the Hawaii health systems
corporation; makes appropriation to the fund from the tobacco
settlement moneys.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           1566
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   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.  The legislature finds that the Hawaii Health
 
 2 Systems Corporation (HHSC) was created to administer the State's
 
 3 community hospitals and to maintain and enhance the health care
 
 4 services provided to the people of Hawaii.  HHSC was designed to
 
 5 be a public benefit corporation to operate autonomously, freeing
 
 6 the facilities from unwarranted oversight.  Although great
 
 7 strides have been made to make the corporation self-sufficient,
 
 8 HHSC must still operate within the state system for collective
 
 9 bargaining, capital improvement funding, issuance of revenue
 
10 bonds, and annual legislative support for direct patient care
 
11 services.  
 
12      The legislature further finds that the recent tobacco
 
13 litigation settlement moneys provides the State with a unique
 
14 opportunity to fund and expand important public health services.
 
15 By investing a portion of the tobacco settlement moneys in the
 
16 HHSC, the HHSC can be assisted to become financially independent
 
17 from the State in the long run, fulfilling the original intent of
 
18 the legislature in creating the HHSC.  The moneys will also help
 
19 HHSC to maintain important health care services through its
 
20 community-based hospital facilities.
 

 
Page 2                                                     
                                     S.B. NO.           1566
                                                        
                                                        

 
 1      The purpose of this Act is to create an endowment fund for
 
 2 HHSC and to appropriate a portion of funds from tobacco
 
 3 litigation settlement moneys to the HHSC.
 
 4      SECTION 2.  Chapter 323F, Hawaii Revised Statutes, is
 
 5 amended by adding a new section to be appropriately designated
 
 6 and to read as follows:
 
 7      "�323F-    Endowment fund.  (a)  There is created a Hawaii
 
 8 health systems corporation endowment fund to be administered by
 
 9 the corporation.  The purpose of the fund shall be to provide
 
10 moneys for the corporation to enhance and maintain important
 
11 health care services through its community hospitals.
 
12      (b)  A portion of all moneys received by the State after
 
13 December 1, 1998, and for twenty-five years thereafter, in an
 
14 amount to be determined by the governor from any settlement or
 
15 award in any litigation that the State is a party to, shall be
 
16 deposited into the Hawaii health systems corporation endowment
 
17 fund; provided that the moneys are not first allocated by the
 
18 State to public health services.
 
19      (c)  The board of directors shall report to the legislature
 
20 no later than twenty days before the convening of each regular
 
21 session on the activities and balance of the Hawaii health
 
22 systems corporation endowment fund."
 
23      SECTION 3.  There is appropriated out of the general
 
24 revenues of the State of Hawaii, the sum $2,000,000, or so much
 

 
Page 3                                                     
                                     S.B. NO.           1566
                                                        
                                                        

 
 1 thereof as may be necessary for fiscal year 1999-2000, from a
 
 2 portion of the moneys received as a result of tobacco litigation
 
 3 settlements, to be deposited into the Hawaii health systems
 
 4 endowment fund as start-up moneys for the purpose of this Act.
 
 5 Further appropriations for the endowment fund shall be determined
 
 6 in accordance with section 323F-   .
 
 7      SECTION 4.  The sum appropriated shall be expended by the
 
 8 Hawaii health system corporation.
 
 9      SECTION 5.  This Act shall take effect upon it approval.
 
10 
 
11                           INTRODUCED BY:  _______________________