STAND. COM. REP. NO. 1556

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 635
                                        H.D. 2
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 635, H.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO HEALTH,"

begs leave to report as follows:

     The purpose of this bill is to authorize the issuance of
special purpose revenue bonds to assist the Hilo Residency
Training Program, Inc., a not-for-profit Hawaii corporation, that
provides health care facilities.

     This bill, as received, authorizes the issuance of
$15,000,000 in special purpose revenue bonds for the Hilo
Residency Training Program, Inc., to retire its outstanding debt,
purchase the lease of existing equipment, acquire and install
additional equipment, and plan, design, construct, and operate
new additions to existing health care facilities.  The bill also
authorizes an unspecified amount of refunding special purpose
revenue bonds to refund the special purpose revenue bonds.

     Your Committee finds that the Hilo Residency Training
Program, Inc., a not-for-profit Hawaii corporation, is engaged in
the development of a health care facility and thereby serves the
public.  Your Committee further finds that special purpose
revenue bonds not exceeding $15,000,000, will assist the Hilo
Residency Training Program, Inc.

 
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                                   STAND. COM. REP. NO. 1556
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     Upon further consideration, your Committee has amended this
bill by:

     (1)  Creating a new section 321-   , Hawaii Revised
          Statutes, to establish a hospital and medical
          facilities special fund in the Department of Health to
          receive all fees collected under section 321-11.5,
          Hawaii Revised Statutes, and from which moneys are to
          be expended to offset the program expenses of the
          Department's Hospital and Medical Facilities Branch;
          and to clarify that any other entities required by law
          to be licensed by the Department are also subject to
          fees;

     (2)  Creating a new section 323D-   , Hawaii Revised
          Statutes, to establish a state health planning and
          development special fund to receive all fees collected
          under chapter 323D, Hawaii Revised Statutes, and from
          which moneys are to be expended to offset the program
          expenses of the State Health Planning and Development
          Agency; and to require the agency to adopt rules to
          establish reasonable fees;

     (3)  Amending section 321-11.5, Hawaii Revised Statutes, to
          require the Director of Health to adopt rules to set
          fees for licensure or certification for certain
          facilities, and to require those fees to be deposited
          into the hospital and medical facilities special fund,
          while leaving all other fees to be deposited into the
          environmental health education fund; and

     (4)  Amending section 321-27(a), Hawaii Revised Statutes, to
          make a conforming amendment to allow certain fees to be
          deposited into the hospital and medical facilities
          special fund.

     Your Committee received testimony in support of these
amendments from the Department of Health and the State Health
Planning and Development Agency.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
635, H.D. 2, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as H.B. No. 635, H.D. 2,
S.D. 1.


 
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                                   STAND. COM. REP. NO. 1556
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                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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