Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Health, to which was referred S.B. No. 459 entitled:

begs leave to report as follows:

The purpose of this measure is to amend the definition of project agreement to include leases, subleases, conditional sale agreements or other financing agreements and to issue special purpose revenue bonds in a total amount not to exceed $30,000,000 to assist Hawaii Pacific Health.

The Department of Budget and Finance and Hawaii Pacific Health submitted testimony in support of this measure. The Hawaii Coalition for Health and one individual submitted testimony in opposition.

Your Committee finds that Hawaii Pacific Health is a nonprofit corporation seeking assistance with costs related to the acquisition, or the acquisition and installment, of information technology, equipment, software, and other related projects. The issuance of special purpose revenue bonds for this reason is in the public interest and for the public health, safety, and general welfare, as the measure will provide health care facilities with the additional flexibility of financing medical equipment purchases.

Your Committee has amended the bill by changing the lapsing date to April 30, 2010.

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. 459, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 459, S.D. 1, and be referred to the Committee on Ways and Means.