HRS §323F-56
Who pays the bills and debts when a facility is transferred
This section says who is responsible for debts and liabilities before and after a facility transfer date. Before the transfer, the State, board, or corporation pays old debts. After the transfer, the private entity or its nonprofit manager pays new liabilities.
businessesstate agencies
The statute, as written — Liabilities
(a) The State, the Maui regional system board, or the corporation, separately or collectively, shall be responsible for any and all obligations incurred by the facility or facilities to be transferred, the Maui regional system, or the corporation prior to the transfer completion date including any accounts payable, accrued paid time off, debt, capital leases, malpractice liabilities, and other obligations incurred before the transfer completion date. Any and all liabilities of the pre-transfer facility that were transferred to the corporation upon its creation by Act 262, Session Laws of Hawaii 1996, all liabilities of the pre-transfer facility related to collective bargaining contracts negotiated by the State, and the liability for all current outstanding post-employment benefits of the regional system or the corporation shall remain the responsibility of the State. (b) All liabilities arising out of a transferred facility's management and operation in a transferred facility, on or after the transfer completion date, shall be the responsibility of the private entity or its nonprofit management entity.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.