Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2052 entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the issuance of up to $80,000,000 in special purpose revenue bonds to finance health care facilities for Hawaii Pacific Health.

In particular, the special purpose revenue bonds are to assist Hawaii Pacific Health, a not-for-profit corporation, in financing, refinancing, and reimbursing costs related to the acquisition or construction of health care facilities, the renovation of existing health care facilities, and other capital related projects.

Your Committee finds that Hawaii Pacific Health is a new health system formed by the recent merger of Kapiolani Hospitals, Straub Hospital and Clinic, and Wilcox Hospital. As a result of the merger, Hawaii Pacific Health is now the largest healthcare delivery system in Hawaii, consisting of four hospitals, twenty-three clinics, and thirty outreach programs.

Your Committee finds that this measure will allow Hawaii Pacific Health to secure much-needed capital at a low, tax-exempt cost to pay for the renovation of aging facilities and the acquisition of new equipment and technology in order to continue providing high quality health care for the people of this State. Some of the major projects include equipment and improvements to the heart center at Straub, nurseries at Kapiolani Women and Children's Hospital, the operating room and nurse's stations at Pali Momi, and a diagnostic center at Wilcox Hospital on Kauai for early detection and treatment without the need for a trip to Honolulu.

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 S.B. No. 2052 and recommends that it pass Third Reading.