STAND. COM. REP. NO. 2132

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2873
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Health and Human Services, to which was
referred S.B. No. 2873 entitled: 

     "A BILL FOR AN ACT RELATING TO HAWAII HEALTH SYSTEMS
     CORPORATION,"

begs leave to report as follows:

     The purpose of this measure is to authorize the Hawaii
Health Systems Corporation (HHSC) to issue $38 million in revenue
bonds.

     Your Committee received testimony in support of this measure
from the Department of Budget and Finance (B&F), Kona-Kohala
Chamber of Commerce, Maui Region Public Health Facility
Management Advisory Committee, Maui Hotel Association, HGEA, Maui
Memorial Medical Center, HHSC, and two private individuals.

     Act 116, Session Laws of Hawaii 1998, relating to the state
budget, authorized $38 million in revenue bond funds for capital
improvement projects for the HHSC.  The HHSC is required by law
to obtain approval of the legislature to issue revenue bonds.
This measure allows the HHSC to seek bond financing for that
amount.

     According to testimony of B&F, Maui Memorial Hospital and
Hilo Medical Center are the only two profitable hospitals in the
HHSC system.  The system as a whole is experiencing a negative
cash flow.  The improvements and renovations financed by the $38

 
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                                   STAND. COM. REP. NO. 2132
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million in revenue bonds are expected to improve the revenue
generating capabilities at the Maui Memorial Hospital.

     Your Committee has amended this measure by making technical,
nonsubstantive changes to reflect preferred drafting style and
for clarity and consistency.

     As affirmed by the record of votes of the members of your
Committee on Health and Human Services that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 2873, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 2873,
S.D. 1, and be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Health and Human
                                   Services,



                                   ______________________________
                                   SUZANNE CHUN OAKLAND, Chair

 
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