STAND. COM. REP. NO.  1035

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1764

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1764 entitled:

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF REVENUE BONDS TO ASSIST HAWAII HEALTH SYSTEMS CORPORATION OR ANY OF ITS REGIONAL SUBSIDIARY CORPORATIONS,"

begs leave to report as follows:

     The purpose of this bill is to improve healthcare services for all of Hawaii's residents by authorizing the issuance of revenue bonds to assist the Hawaii Health Systems Corporation (HHSC) in the construction, improvement, and equipment of its healthcare facilities, including the construction of a new heart, brain, and spine center on Maui.

HHSC and Healthcare Association of Hawaii testified in support of this bill.  The Department of the Attorney General opposed this measure.

     Your Committee has amended this bill by:

(1)  Specifying that the revenue bonds may be issued pursuant to Part III of Chapter 39, Hawaii Revised Statutes;

(2)  Clarifying that the revenue bonds are to be issued by HHSC rather than the Department of Budget and Finance, as HHSC has the authority to issue revenue bonds;

(3)  Clarifying that the bonds shall be special, limited obligations of HHSC, rather than the State; and

(4)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     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. 1764, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1764, H.D. 1.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair