STAND. COM. REP. NO. 2120

Honolulu, Hawaii

RE:    S.B. No. 2768

       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. 2768 entitled:

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF REVENUE BONDS TO ASSIST THE MAUI REGION OF THE HAWAII HEALTH SYSTEMS CORPORATION,"

begs leave to report as follows:

     The purpose of this measure is to provide for the improvement of Maui Memorial Medical Center, a facility located in the Maui region of the Hawaii Health Systems Corporation.

     Specifically, this measure authorizes the issuance of revenue bonds in the amount of $150,000,000 for the construction of a new heart, brain, and spine center on Maui and purchasing of new and replacement equipment for the center.

     Your Committee received testimony in support of this measure from Maui Memorial Medical Center and the Healthcare Association of Hawaii.  Your Committee received testimony in opposition to this measure from the Department of Budget and Finance.

     Your Committee finds that this measure will provide much needed assistance to the Maui region of the Hawaii Health Systems Corporation in constructing a new heart, brain, and spine center without any cost or liability for the State, thereby improving access to this kind of specialized care to the residents of Maui.

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

     (1)  Removing the Department of Budget and Finance as the issuer of the revenue bonds and replacing it with the Maui Health Care Regional System Board of the Hawaii Health Systems Corporation;

     (2)  Authorizing the Maui Health Care Regional System Board to issue $150,000,000 of revenue bonds, as opposed to the $100,000,000 currently authorized in section 323F‑7(c), Hawaii Revised Statutes;

     (3)  Including language clarifying that the authorization of the issuance of revenue bonds is pursuant to part III, chapter 39, Hawaii Revised Statutes;

     (4)  Including language that authorizes the Maui Health Care Regional System Board of the Hawaii Health Systems Corporation to issue refunding revenue bonds for the purpose of refunding, redeeming, or retiring any revenue bonds outstanding and issued under this measure;

     (5)  Including an appropriation provision to effectuate the purpose of the measure; and

     (6)  Making technical, nonsubstantive changes for the purposes of clarity, consistency, 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. 2768, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2768, 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