STAND. COM. REP. NO. 399

Honolulu, Hawaii

RE:    S.B. No. 971

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. 971 entitled:

"A BILL FOR AN ACT RELATING TO SPECIAL PURPOSE REVENUE BONDS FOR NOT-FOR-PROFIT CORPORATIONS THAT PROVIDE HEALTH CARE FACILITIES TO THE GENERAL PUBLIC,"

begs leave to report as follows:

     The purpose of this measure is to increase the ability of nonprofit health care providers to care for the general public.

     Specifically, this measure extends the sunset date for the issuance of special purpose revenue bonds for The Queen's Health System to assist with financing costs of construction, improvements, and equipment of health care facilities from June 30, 2008, to June 30, 2013.

     Testimony in support of this measure was submitted by The Queen's Medical Center and Healthcare Association of Hawaii.

     Your Committee finds that The Queen's Medical Center plays a vital role in the health care of our residents and visitors.  To ensure it can continue to do so, The Queen's Health System must be able to maintain its facilities and equipment.  Special purpose revenue bonds will allow The Queen's Health System to finance necessary capital projects at a lower cost while not requiring any state funds. 

     Your Committee finds that extending the sunset date for the issuance of special purpose revenue bonds will enable The Queen's Health System to maintain the health of our community.

     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. 971 and recommends that it pass Second Reading 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