Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Human Services and Health, to which was referred H.B. No. 1530, H.D. 1, entitled:

beg leave to report as follows:

The purpose of this measure is to issue special purpose revenue bonds to assist the Palolo Chinese Home and its subsidiaries.

Your Committees received testimony in support of this measure from the Honolulu Department of Community Services and Palolo Chinese Home. Comments were received from the Department of Budget and Finance.

The Palolo Chinese Home is a non-profit corporation that provides health care facilities to the general public. Your Committees find that the Palolo Chinese Home has a long and distinguished record of providing long-term care and related services to our senior citizens. This facility was founded in 1917 to primarily provide senior citizens with long-term care services and other related services. The Palolo Chinese Home provides services to assist and care for the aged and to maintain homes for them; aid in the alleviation of human suffering and distress; and carry on works of charity, mercy, and benevolence.

Recently, the Palolo Chinese Home proposed an ambitious plan in the expansion and reconstruction of its health facilities located at 2459 Tenth Avenue in Honolulu to meet the future demand for long-term care and services of the growing population of senior citizens. The Palolo Chinese Home estimates that it will take about $40,000,000 in special purpose revenue bonds to complete the rehabilitation of its existing facilities and construct additional facilities on its campus.

Your Committees have amended this measure by changing the effective date to July 1, 2005, and changing the amount from $20,000,000 to $40,000,000.

As affirmed by the records of votes of the members of your Committees on Human Services and Health that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1530, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1530, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.