Honolulu, Hawaii

                , 2015


RE:   H.B. No. 1075

      H.D. 2





Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii




     Your Committee on Labor & Public Employment, to which was referred H.B. No. 1075, H.D. 1, entitled:




begs leave to report as follows:


     The purpose of this measure is to ensure continued access to health care services in the County of Maui by authorizing the Hawaii Health Systems Corporation (HHSC) Maui Regional System, in collaboration with a private entity, to transition one or more of its facilities, which include Maui Memorial Medical Center, Kula Hospital and Clinic, and Lanai Community Hospital, into a new private nonprofit corporation operated by the private entity and subject to HHSC oversight.


     The Department of Budget and Finance; the Mayor of the County of Maui; Department of Management of the County of Maui; Hawaii Health Systems Corporation; Hawaii Health Systems Corporation Maui Region; Maui Memorial Medical Center; Hawaii Health Systems Corporation Kauai Regional Board; Healthcare Association of Hawaii; Hawaii Health Systems Corporation Maui Regional Board; Hawaii Pacific Health; Chamber of Commerce Hawaii; Kula Community Association; Hale Makua Health Services; Realtors Association of Maui; Goodfellow Bros., Inc.; and numerous individuals supported this measure.  The Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO and numerous individuals opposed this measure.  The Department of the Attorney General; Office of Hawaiian Affairs; and two concerned individuals commented on this measure.


     Your Committee notes the concerns raised by the Department of the Attorney General regarding the shift in liabilities between the State, HHSC, and HHSC Maui region through the lease and has amended this measure by:


     (1)  Clarifying that transition shall occur upon the approval of the lease and management plan by the Governor and the Maui Regional System Board before it is subject to legal and financial review respectively;


     (2)  Specifying that the assumption of various liabilities in regards to the transition shall be assumed as of the effective date of the lease;


     (3)  Requesting the Governor, HHSC, and respective unions representing employees involved to meet and negotiate the transfer of employees and to submit recommendations, if any, to the Legislature; and


     (4)  Making technical, nonsubstantive amendments for clarity, consistency, and style.


     As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1075, H.D. 1, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as H.B. No. 1075, H.D. 2.



Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,