STAND. COM. REP. NO. 408

Honolulu, Hawaii

RE:    S.B. No. 1629

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Health, to which was referred S.B. No. 1629 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 measure is to authorize the issuance of revenue bonds to assist Hawaii Health Systems Corporation (HHSC) or any of its regional subsidiary corporations.

     Your Committee received testimony in support of this measure from HHSC, Healthcare Association of Hawaii, and Maui Memorial Medical Center.  Comments were received from the State Attorney General.

     Your Committee 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 HHSC or any of its regional subsidiary corporations that provide healthcare services and facilities for all residents.  Your Committee finds that the issuance of revenue bonds is in the public interest and for the benefit of public health, safety, and welfare.

     The proceeds of the bond sale under this measure would be applied to construction, improvement, and equipment for a new heart, brain, and spine center on Maui.  Your Committee believes that the expansion of cardiology and neurology services at Maui Memorial Medical Center will have a tremendous positive impact on the health and wellness of all residents of Maui and the State, especially since there is a critical need on Maui to develop additional healthcare services, particularly cardiovascular and neurovascular services.  Furthermore, the revenue generated by the proposed services would be a profitable service line so as to help defray the cost of the proposed center and other hospital services. 

     Your Committee has amended this measure on the recommendation of the Attorney General by designating the HHSC as the issuing agency, since it has the power to issue revenue bonds, and making technical, nonsubstantive amendments for purposes of clarity and style.

     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 S.B. No. 1629, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1629, 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