STAND. COM. REP. NO. 2202

Honolulu, Hawaii

RE:    S.B. No. 2397

       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 S.B. No. 2397 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 provide assistance to Castle Medical Center and one or more of its nonprofit affiliates, in the improvement of health care facilities.

     Specifically, this measure authorizes the issuance of special purpose revenue bonds to assist Castle Medical Center, or its non-profit affiliates, to finance and refinance equipment purchases, and for the construction and improvement of health care facilities, including the following:

     (1)  Remodeling and rebuilding existing health care facilities;

     (2)  Constructing new health care facilities;

     (3)  Purchasing new equipment;

     (4)  Refinancing debt; and

     (5)  Other related projects for Castle Medical Center and its affiliated nonprofit affiliations.

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

     Your Committee finds that providing financial support in the form of special purpose revenue bonds will ensure the continued provision of quality health service at Castle Medical Center.  Your Committee further finds that special purpose revenue bonds are attractive to corporations because they reduce the cost of financing capital projects and are attractive to the State because they do not involve any expenditure of state revenues.

     Your Committee has adopted the recommendations of the Department of Budget and Finance and amended this measure by inserting technical language regarding the lapsing on June 30, 2013 of the authorization to issue special purpose revenue bonds.

     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. 2397, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2397, 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