STAND. COM. REP. NO.  1129-08

Honolulu, Hawaii

                , 2008

RE:   S.B. No. 2397

      S.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Health, to which was referred S.B. No. 2397, S.D. 2, 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 bill is to authorize the issuance of special purpose revenue bonds to assist Castle Medical Center.

     Specifically, this bill authorizes, effective July 1, 2050, the issuance of special purpose bonds in an amount not to exceed $30,000,000 to finance and refinance equipment purchases and for the construction and improvement of the health care facilities of Castle Medical Center and its nonprofit affiliates, including:

     (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 nonprofit affiliates.

     Your Committee received testimony in support of this bill from the President and Chief Executive Officer and a physician staff member of Castle Medical Center, Healthcare Association of Hawaii and Hawaii Building and Construction Trades Council.

     Your Committee finds that the authorization to issue special purpose revenue bonds to assist Castle Medical Center is in the public interest and for the public health, safety, and general welfare.  This measure will improve access to health care in the State, particularly for residents of windward Oahu.

     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, S.D. 2, and recommends that it pass Second Reading and be referred to the Committee on Finance.

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

____________________________

JOSHUA B. GREEN, M.D., Chair