Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Health, to which was referred S.C.R. No. 118 entitled:

begs leave to report as follows:

The purpose of this measure is to request the Department of Health to research avenues of appropriate financing for capital improvements for federally qualified health centers, including use of revolving loan funds.

Your Committee received testimony in support of this measure from the Hawaii Primary Care Association, the Molokai Community Health Center, the Waikiki Health Center, the Kalihi-Palama Health Center, the Bay Clinic, Inc., and the Hamakua Health Center, Inc. Your Committee received testimony in opposition to the measure from the Department of Health.

Your Committee finds that federally qualified health centers play a vital role in providing affordable, quality health care. Research into revolving funds and other financing mechanisms available for capital improvements needs to be conducted to alleviate the financial constraints of federally qualified health centers.

Your Committee has amended this measure in response to the testimony submitted by the Department of Health by requesting the Department of Health to convene a task force of interested stakeholders to research appropriate financing.

As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 118, as amended herein, and recommends its adoption in the form attached hereto as S.C.R. No. 118, S.D. 1.