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 H.B. No. 1459, H.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.

The Department of Budget and Finance, the Healthcare Association of Hawaii, and Hawaii Pacific Health submitted testimony in support of this measure.

Your Committee agrees with Healthcare Association of Hawaii that the field of health care is dynamic and advances occur frequently in virtually every specialty area. Hawaii Pacific Health testified that this issuance of special purpose revenue bonds will enable it to "implement a comprehensive electronic medical record system, including integrated pharmacy, ambulatory, radiology and hospital records to meet federal requirements and the service needs of ... patients." This measure also specifies that leases are included within the definition of a "project agreement" as pertains to special purpose revenue bonds. This provides certainty to the capital markets.

Upon further consideration, your Committee has amended this measure by blending it with S.B. No. 459, S.D. 2, as follows:

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 H.B. No. 1459, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1459, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.