HB 1112 Summary

• Requires the state auditor to conduct financial and management audits of the Hawaii Health Systems Corporation (HHSC) every five years.

• Grants HHSC authority to negotiate master collective bargaining agreements directly with employee unions rather than through the state, allowing independent agreements after July 1, 2015.

• Authorizes regional systems of HHSC to transition facilities to management by nonprofit entities controlled by private healthcare operators, with the state retaining real property ownership under 25+ year leases at $1 per year.

• Establishes requirements for transitioned facilities including governance standards, annual audits, tax compliance, and state funding eligibility for operating and capital costs during the first ten years.

• Appropriates unspecified funds and positions to the Department of Budget and Finance to review transition documents and fiscal implications; effective January 7, 2059 (except collective bargaining provisions effective July 1, 2015).