STAND. COM. REP. NO. 165-04

Honolulu, Hawaii

, 2004

RE: H.B. No. 2040

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committees on Health and Labor and Public Employment, to which was referred H.B. No. 2040 entitled:

"A BILL FOR AN ACT RELATING TO THE STATE VETERANS' HOME,"

beg leave to report as follows:

The purpose of this bill is to support the operation of the State Veterans' Home in Hilo by requiring that its day-to-day operation be contracted to a private entity and by establishing a veterans' home account and gift account in the state treasury.

Specifically, this bill requires the Hawaii Health Systems Corporation to contract with a private entity to administer, manage, and operate the State Veterans' Home with non-government personnel and staff. The private entity would also be exempt from the procurement code for the purchase of supplies and items for resale, such as food, gift items, souvenirs, and other similar items, and for contracting for services relating to the gift shop and vending machines. The Hawaii Health Systems Corporation is also required to set guidelines for admission to the facility and facility charges. The private entity, however, is granted the power to actually set fees, set up accounts, and perform other operational duties.

The bill also creates the veterans' home account and gift account for veterans' homes within the state treasury. Both are to be administered by the chief executive officer of the Hawaii Health Systems Corporation. The home account is to be used for operations, programs or services, solicitation of other revenue sources, and public informational programs. The bill also sets guidelines for use of moneys in the gift account.

The bill further prescribes detailed criteria for admission to the State Veterans' Home. In addition, the bill requires all applicants for admission to apply for all federal and state benefits for which they may be eligible and requires the chief executive officer of the Hawaii Health Systems Corporation to apply for federal grants and other sources of money available for establishing a state veterans' home. Finally, the bill requires a contract to be signed with the private entity no later than six months prior to the date the State Veterans' Home begins operation.

The Office of Veterans Services of the Department of Defense and a few concerned individuals testified in support of this measure. The Hawaii Government Employees Association and the Hawaii Health Systems Corporation submitted testimony in opposition. Several individuals submitted comments. In addition, the Auditor provided a number of accountability options for consideration.

Your Committees find that legislatively mandating the operation of the State Veterans' Home by a private entity is premature at this time and unnecessary for the following reasons:

(1) There are too many issues and unknown cost considerations; and

(2) The Hawaii Health Systems Corporation, Hilo Medical Center, and members of the community have not yet been given an opportunity to conclude their discussions on the issues concerning the State Veterans' Home.

Upon further consideration, your Committees have amended this measure by:

(1) Deleting all provisions in the bill other than the establishment of the veterans' home account and the veterans' gift account;

(2) Adding a provision to require that the two accounts comply with reporting requirements for non-general fund information pursuant to section 37-47, Hawaii Revised Statutes; and

(3) Making several technical nonsubstantive amendments to clarify the nature of the accounts.

As affirmed by the records of votes of the members of your Committees on Health and Labor and Public Employment that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2040, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2040, H.D. 1, and be referred to the Committee on Public Safety and Military Affairs.

Respectfully submitted on behalf of the members of the Committees on Health and Labor and Public Employment,

 

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MARCUS R. OSHIRO, Chair

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DENNIS A. ARAKAKI, Chair