Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, 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 special purpose revenues bonds for the benefit of the Queen's Health Systems and its nonprofit affiliates.

Specifically, the bill authorizes the issuance of up to $200,000,000 in bonds. The bond revenue will be spent by the Queen's Medical Center, a nonprofit Queen's Health Systems affiliate, for purposes that include renovation of existing health care facilities, construction of new health care facilities, and acquisition of equipment, assets, and information technology.

Your Committee finds that the bond proceeds will enable the Queen's Medical Center to provide a national level of health care services. The funds will support the Queen's health care professionals in pursuing the more effective, appropriate, and safest treatment and prevention for patients.

Your Committee notes that the Queen's Health Systems has an outstanding bond authorization in the amount of $150,000,000 that will lapse on June 30, 2003. None of that has been used or is expected to be used, and this bond authorization will be Queen's only bond revenue funding mechanism.

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. 645, and recommends that it pass Third Reading.