STAND. COM. REP. NO. 988

Honolulu, Hawaii

RE:    S.B. No. 1260

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 1260, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO A GRANT TO KAHUKU HOSPITAL,"

begs leave to report as follows:

     The purpose of this measure is to make an emergency appropriation to enable Kahuku Hospital to continue operating on the north shore of Oahu.

     Specifically, this measure appropriates $950,000 as a grant, pursuant to chapter 42F, Hawaii Revised Statutes, to Kahuku Hospital to enable it to continue operations; preserve its hospital license; retain its certificate of need and critical access hospital designation; reorganize; and settle its debts to allow Kahuku Hospital to be acquired by the Hawaii health systems corporation or become affiliated with the Hawaii health systems corporation.

     Your Committee received comments in support of this measure from Kahuku Hospital, Hawaii Reserves, Inc., Brigham Young University at Hawaii, Polynesian Cultural Center, American Council of Life Insurers, Koolau Loa Neighborhood Board, and thirty-seven individuals.

     Your Committee has amended this bill to comply with the requirements of section 9 of article VII of the Constitution of the State of Hawaii, by inserting a new section 4 which states that the appropriation in this bill will cause the general fund expenditure ceiling to be exceeded by $950,000, or an additional 0.018 per cent.  As required by section 37-93, Hawaii Revised Statutes, the new section of this Act also sets forth the reasons for exceeding the general fund expenditure ceiling for fiscal year 2006-2007.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1260, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1260, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair