STAND. COM. REP. NO. 3041

Honolulu, Hawaii

RE:    H.B. No. 2271

       H.D. 1

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Health, to which was referred H.B. No. 2271, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST CASTLE MEDICAL CENTER AND ITS AFFILIATES,"

begs leave to report as follows:

     The purpose of this measure is to authorize the issuance of special purpose revenue bonds to assist Castle Medical Center, a Hawaii not-for-profit corporation, in financing and refinancing equipment purchases, and the construction and improvement of its health care facilities.

     Your Committee received testimony in support of this measure from Castle Medical Center, the Healthcare Association of Hawaii, and two individuals.  The Department of Budget and Finance submitted comments on this measure.

     Your Committee finds that Castle Medical Center intends to use the special purpose revenue bonds as a means of financing the outpatient infrastructure of the facility, including renovations to the emergency department, replacement of the pharmacy, and expansion of the imaging center.  Your Committee further finds that this issuance, while improving access to health care, does not involve any appropriation or expenditure of state funds, and it does not affect the financial liability of the State.

     Your Committee adopted the recommendations of the Department of Budget and Finance and has amended this measure by:

     (1)  Including a lapse date of June 30, 2013, to be consistent with Act 148, Session Laws of Hawaii 2001, which states that no authorization shall be made for a period exceeding five years of its enactment; and

     (2)  Authorizing the Department to refund the special purpose revenue bonds after the lapse date of June 30, 2013, if advantageous to Castle Medical Center.

     As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2271, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2271, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.

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

____________________________

DAVID Y. IGE, Chair