REPORT Title:

Hawaii Health Systems Corporation; Revenue Bonds

Description:

Authorizes revenue bonds to assist Hawaii health systems corporation for construction, improvement, and equipment of a new heart, brain, and spine center on Maui.  (SD2)

THE SENATE	S.B. NO.	1629
TWENTY-FOURTH LEGISLATURE, 2007		S.D. 2
STATE OF HAWAII

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.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that significant public benefit will be realized through the planning, construction, improvement of, and purchase and replacement of equipment for the facilities of the Hawaii health systems corporation or any of its regional subsidiary corporations who provide healthcare services and facilities for all residents.  The legislature further finds that the issuance of revenue bonds under this Act is in the public interest and for the benefit of public health, safety, and welfare.

     SECTION 2.  Pursuant to part III, chapter 39, Hawaii Revised Statutes, the Hawaii health systems corporation, with the approval of the governor, is authorized to issue revenue bonds in a total amount not to exceed $100,000,000, in one or more series, for the purpose of assisting the Hawaii health systems corporation, or any of its regional subsidiary corporations to finance the construction and improvement of, and purchase of new and replacement equipment for its health care facilities, including the construction of a new heart, brain, and spine center on Maui, which will offer the following:

     (1)  Cardiovascular services; including:

         (A)  Interventional cardiology;

         (B)  Electrophysiology;

         (C)  Vascular/endovascular;

         (D)  Heart surgery;

         (E)  Cardiac rehab; and

         (F)  Disease management;

     (2)  Brain services for interventional neuro radiology; and

     (3)  Neurosurgery.

     SECTION 3.  Bond terms.  (a)  The principal of and interest on the revenue bonds issued pursuant to section 2 shall be payable solely from and secured solely by the revenues produced by the heart, brain, and spine center financed by the bonds.

     (b)  The revenue bonds may also be used to finance capitalized interest on the bonds and any other expenses incidental thereto or connected therewith, including the planning, design, engineering, inspection, legal, and fiscal agent fees and costs of the issuance of the revenue bonds.

     (c)  The bonds shall be special, limited obligations of the Hawaii health systems corporation, payable exclusively from and secured by a lien on the revenues of the heart, brain, and spine center financed by the bonds.

     (d)  The revenue bonds shall not be secured by the taxing power of the State.  The principal on the bonds and any premiums upon the redemption thereof shall not constitute or evidence a debt of the State, nor a legal or equitable pledge, charge, lien, or encumbrance upon any of its property, or upon any of its income, receipts, or revenues, except the revenues of the heart, brain, and spine center finance by the bonds.

     SECTION 4.  The authorization to issue revenue bonds under this Act shall lapse on June 30, 2012.

     SECTION 5.  This Act shall take effect on July 1, 2007.