Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Health, to which was referred H.B. No. 645 entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the issuance of up to $200,000,000 in special purpose revenue bonds to assist The Queen's Health Systems to finance the cost of renovating existing health care facilities and constructing new facilities.

Testimony supporting this measure was received from The Queen's Health Systems, Healthcare Association of Hawaii, Laborers' International Union of North America, Local 368, AFL-CIO, and Hawaii Building and Construction Trades Council, AFL-CIO.

Your Committee finds that ensuring the provision of quality health care is one of the primary responsibilities of our government. The Queen's Medical Center (Queen's), a subsidiary of The Queen's Health Systems, serves the health care needs of a significant portion of Oahu's population.

In order to remain on the cutting edge of technological and medical advancements, and to remain competitive as a health care leader at the national level, your Committee finds that Queen's will have to upgrade its facilities and programs.

The issuance of special purpose revenue bonds authorized by this measure will enable Queen's to upgrade and renovate existing facilities, improve on standards of patient care as new technologies emerge, and implement new and less invasive means of disease treatment.

In addition, your Committee believes the issuance of the bonds authorized by this measure is appropriate due to the fact that The Queen's Health Systems has an outstanding bond authorization in the amount of $150,000,000 that will lapse in June of this year. So far, none of that bond authorization has been utilized and The Queen's Health Systems is not likely to draw on those bonds prior to their expiration. The special purpose revenue bonds authorized pursuant to this measure will provide the capital for improvement and expansion of Queen's.

As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 645, and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.