Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 1459 entitled:

begs leave to report as follows:

The purpose of this bill is to improve health care in Hawaii by authorizing the issuance of $30,000,000 in special purpose revenue bonds (SPRBs) to assist Hawaii Pacific Health and its affiliates in financing, refinancing, or reimbursing, or any combination thereof, costs related to the acquisition or construction of health care facilities.

In addition, this bill clarifies the definition of "project agreement" for SPRBs by including leases, subleases, conditional sales agreements, or other similar financing contracts or agreements as examples of loans that assist not-for-profit corporations that provide health care facilities to the general public.

The Healthcare Association of Hawaii supported this measure. Hawaii Pacific Health supported this bill with amendments. The Department of Budget and Finance offered comments.

Your Committee has amended this measure by:

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1459, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1459, H.D. 1, and be placed on the calendar for Third Reading.