Report Title:

State Veterans' Home; Private Management

Description:

Requires Hawaii health systems corporation to contract with private entity to manage day-to-day operation of the state veterans' home in Hilo.

HOUSE OF REPRESENTATIVES

H.B. NO.

2040

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to the state veterans' home.

 

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

SECTION 1. Chapter 323F, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part  .  State veterans' home

323F-A State veterans' home; contract with private entity. (a) The corporation shall provide long-term care services and skilled nursing care to veterans and their spouses in the state veterans' home. The chief executive officer, with the approval of the corporation board, shall enter into an agreement with a non-governmental private entity to administer, manage, and operate the state veterans' home as a self-sustaining facility. The contracted private entity shall:

    1. Be experienced in the operation and staffing of long-term care facilities; and
    2. Hire and maintain the necessary staff and personnel, who shall not be government employees by virtue of their service in this regard, to administer, manage, and operate the state veterans' home.

The corporation shall not engage in the day-to-day operation and management of the state veterans' home; provided that the corporation shall assign not more than one full-time staff to provide oversight and liaison with the management of the contracted private entity.

(b) The corporation shall delegate to the private entity contracted to operate the state veterans' home the power to:

    1. Contract for tangible personal property to be used by the state veterans' home, without regard to chapter 103D, at a price equal to or less than the contractor's current federal supply contract price, if the contractor indicates in writing that the contractor is willing to extend the current federal supply contract pricing, terms, and conditions to the tangible personal property and the purchase order for the items of tangible personal property adequately identifies the federal supply contract on which the contract is based; and
    2. Dispose of surplus property at the state veterans' home by sale to private persons, firms, and corporations, including hospitals and other nursing home facilities.

(c) The private entity contracted to operate the state veterans' home shall be exempt from chapter 103D 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 located in the state veterans' home.

(d) The corporation shall set guidelines for determining eligibility for admission to the state veterans' home, pursuant to section 323F-C, and the monetary charges to be paid by residents. All guidelines shall conform to the federal requirements that must be met to qualify the veterans' home as a nursing home for veterans and to render the home eligible to receive federal financial assistance.

(e) In administering the veterans' home, the private entity contracted to operate and manage the state veterans' home may:

    1. Establish accounts to record the receipt and disbursements from residents to pay for maintenance in the home;
    2. Set charges pursuant to subsection (d);
    3. Develop accounts and procedures pertaining to incompetent residents;
    4. Establish any other accounts that are necessary for the orderly administration of the home; and
    5. Settle any debt owed to the state veterans' home by collecting at least seventy-five per cent of the account balance. If unable to do so, the contracted private entity shall refer the account to the attorney general's office for collection.

(f) The corporation shall adopt rules in accordance with chapter 91 to implement this part.

323F-B Veterans' home account; gift account for veterans' homes. (a) The veterans' home account is hereby established within the state treasury.

(b) Moneys received by the chief executive officer from:

    1. Payments by any executive department for veterans who receive care in the state veterans' home;
    2. Other payments for medical care and services, including:

(A) Residents' fees and charges, if any;

(B) Per diem payments received from the United States Department of Veterans Affairs; and

(C) Medicare payments;

(3) Appropriations made by the legislature for the state veterans' home; and

(4) Except as otherwise provided in subsection (e), gifts of money and proceeds derived from the sale of gifts of personal property that the chief executive officer is authorized to accept for the use of the state veterans' home, if the use of those gifts has not been restricted by the donor,

shall be deposited with the director of finance for credit to the veterans' home account.

(c) The state veterans' home account shall be administered by the chief executive officer. Moneys deposited in the veterans' home account may only be expended for:

(1) The operation of the state veterans' home;

(2) Programs or services related to the state veterans' home;

(3) The solicitation of other sources of money to fund the state veterans' home; and

(4) Programs to inform the public about issues concerning the establishment and uses of the state veterans' home.

(d) Except as otherwise provided in subsection (e), gifts of personal property that the chief executive officer is authorized to receive for the use of the state veterans' home may be:

(1) Sold or exchanged; or

(2) Used in kind if the gifts are not appropriate for conversion to money.

(e) The chief executive officer shall use gifts of money or personal property that the chief executive officer is authorized to accept and that the donor has restricted to one or more uses at the state veterans' home, only in the manner designated by the donor. Gifts of money that the chief executive officer is authorized to accept and that the donor has restricted to one or more uses at the state veterans' home shall be deposited with the director of finance for credit to the gift account for veterans' homes. The interest and income earned on the money in the gift account for veterans' homes, after deducting any applicable charges, shall be credited to the gift account for veterans' homes. Any money remaining in the gift account for veterans' homes at the end of each fiscal year shall not lapse to the state general fund, but shall be carried forward into the next fiscal year.

323F-C Admission. Unless the resources of the state veterans' home are insufficient to accommodate further admissions, an individual who is a bona fide resident of the State at the time of the individual's application for admission, is indigent and unable to support the individual and the individual's family, and meets the following requirements, shall be eligible for admission to the state veterans' home:

(1) Honorably discharged veterans of a branch of the armed forces of the United States or merchant marines;

(2) Members of the state militia under section 121-1(1) and (2) disabled while in the line of duty;

(3) Filipino World War II veterans who swore an oath to American authority and participated in military engagements with American soldiers;

(4) Spouses of these veterans, merchant marines, and members of the state militia. However, the spouse must have been married to and living with the veteran for three years prior to the date of application for admittance;

(5) Spouses of:

(A) All honorably discharged veterans of the United States armed forces;

(B) Merchant marines; and

(C) Members of the state militia under section 121-1(1) and (2) who were disabled while in the line of duty or who were otherwise eligible for admission at the time of death; and

(6) Spouses of:

(A) All honorably discharged veterans of a branch of the United States armed forces;

(B) Merchant marines; and

(C) Members of the state militia under section 121-1(1) and (2) who would have been entitled to admission at the time of death, but for the fact that the spouse was not indigent, but has since become indigent and unable to support the person and the person's family.

However, the included spouse shall be at least fifty years old and have been married to and living with the veteran for three years prior to the date of application. The included spouse, since the death of the veteran, shall not have been married to a person who is not eligible for admission to the state veterans' home.

323F-D Application for federal and state benefits. All applicants for admission to the state veterans' home shall apply for all federal and state benefits for which they may be eligible, including state medical assistance under chapter 346.

323F-E Federal funds. (a) The chief executive officer shall apply for federal grants and other sources of money available for establishing a state veterans' home. Federal grants and other money received shall be deposited in the veterans' home account. Federal grants shall be used only as permitted by the terms of the grant.

(b) The director of finance is authorized to receive any and all moneys appropriated or paid by the United States under the act of Congress entitled "An Act to Provide Aid to State or Territorial Homes for Disabled Soldiers and Sailors of the United States," approved August 27, 1888, or under any other act or acts of Congress for the benefit of these homes. The moneys shall be deposited in the veterans' home account and shall be expended for the maintenance of the state veterans' home."

SECTION 2. In order to provide a seamless transition to the opening and operation of the state veterans' home, the Hawaii health systems corporation shall enter into an agreement with a non-governmental private entity to administer, operate, and manage the state veterans' home pursuant to section 1 of this Act no later than six months prior to the date the state veterans' home begins operation.

SECTION 3. In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:

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