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 S.B. No. 3 entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the issuance of up to $20,000,000 in special purpose revenue bonds to assist North Hawaii Community Hospital, Inc., in retiring outstanding debt, purchasing leases on existing equipment, constructing new facilities and repairing existing facilities, and acquiring and installing new equipment.

Your Committee received testimony in support of this measure from two members of the Hawaii County Council, the President and Vice President of North Hawaii Community Hospital, Inc., and a concerned citizen. The Department of Budget and Finance submitted comments.

Your Committee finds that providing quality health care is one of the primary responsibilities of our government. North Hawaii Community Hospital, Inc., which opened nearly seven years ago, plays a critical role in the delivery of medical services to residents of the Big Island.

Importantly, the hospital enjoys broad based community support, in part because it offers a wide range of innovative health care services that incorporate Eastern Medicine and focus on treating patients in the context of their families.

Your Committee finds that as the recipient of much private funding, the hospital serves as a model public/private partnership that should be encouraged by the State. Therefore, your Committee supports the issuance of special purpose revenue bonds to assist the hospital in its effort to reduce existing debt and expand programs and services.

Your Committee amended this measure based on the testimony of the Department of Budget and Finance, to permit the refunding of the bonds authorized by this measure at any time, including after the proposed lapse date of June 30, 2005. Your Committee agrees that this amendment will give the hospital and the State greater flexibility in retiring its debt.

Your Committee also made several technical, nonsubstantive amendments for purposes of style and clarity.

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 S.B. No. 3, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3, S.D. 1, and be referred to the Committee on Ways and Means.