STAND. COM. REP. NO.824

Honolulu, Hawaii

, 2003

RE: S.B. No. 1676

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1676 entitled:

"A BILL FOR AN ACT RELATING TO HEALTH,"

begs leave to report as follows:

The purpose of this measure is to remedy the conflict of interest situation created by the Department of Health licensing its own contracted providers.

Specifically, this bill transfers the Department of Health's Office of Health Care Assurance, which carries out licensing functions, to the State Health Planning and Development Agency (SHPDA). This bill also renames SHPDA the Hawaii Health Performance Agency. This move has been recommended by the Auditor in the Auditor's Report No. 02-06.

Your Committee agrees with the Auditor that conflicts of interest do arise under the current circumstances. This measure establishes the necessary separation by transferring the duties of the Office of Health Care Assurance to the State Health Planning and Development Agency, an administratively attached but operationally independent agency, thus, ensuring that residential care facilities are properly and effectively monitored and regulated. More important, this measure removes the appearance of any conflict of interest.

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. 1676 and recommends that it pass Third Reading.

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

____________________________

BRIAN T. TANIGUCHI, Chair