Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 459, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the issuance of $30,000,000 in special purpose revenue bonds to assist Hawaii Pacific Health in financing, refinancing, and reimbursing costs related to construction of health care facilities, development of information technology and software, and other related projects.

The bill also amends the definition of "project agreement" under the special purpose revenue bond law relating to health care facilities to include lease financing.

Your Committee finds that Hawaii Pacific Health is comprised of Kapiolani Medical Center for Women and Children, Kapiolani Medical Center at Pali Momi, Straub Clinic and Hospital and Wilcox memorial Hospital, including twenty three clinics and outreach programs. Your Committee further finds that the special purpose revenue bonds issued in this bill will serve the public purpose because Hawaii Pacific Health will use the proceeds from the special purpose revenue bonds for, among other things, the purchase of information technology, software and equipment, and diagnostic imaging equipment. This would allow Hawaii Pacific Health to implement a comprehensive electronic medical record system to integrate pharmacy, ambulatory, radiology, and hospital records to not only meet federal requirements but to also better serve their patients.

Your Committee also finds that the inclusion of lease financing in the definition of "project agreement" will clarify the law and also allow hospital and health care providers that apply for special purpose revenue bonds to use lease financing as a more cost-effective means of managing cash flow and to ensure the availability of needed healthcare services on a timely basis.

Your Committee has amended the bill by making a technical amendment that has no substantive effect.

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. 459, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 459, S.D. 2.