HOUSE OF REPRESENTATIVES	H.B. NO.	1813
TWENTY-FIFTH LEGISLATURE, 2009		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST HAWAII MEDICAL CENTER.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds and declares that the issuance of special purpose revenue bonds under this Act is in the public interest and for the public health, safety, and general welfare.

     SECTION 2.  Pursuant to part II, chapter 39A, Hawaii Revised Statutes, the department of budget and finance, with the approval of the governor, is authorized to issue special purpose revenue bonds in a total amount not to exceed $40,000,000, in one or more series, for the purpose of assisting Hawaii Medical Center, a Hawaii limited liability company, and one or more of its not-for-profit affiliates, to finance or refinance equipment purchases, and for the construction and improvement of health care facilities, 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 Hawaii Medical Center and its not-for-profit affiliates.

The legislature hereby finds and determines that Hawaii Medical Center and its not-for-profit affiliates constitute a project as defined in part II, chapter 39A, Hawaii Revised Statutes, and the financing thereof is assistance to a corporation that provides health care facilities to the general public.

     SECTION 3.  The special purpose revenue bonds and the refunding special purpose revenue bonds issued under this Act shall be issued pursuant to part II, chapter 39A, Hawaii Revised Statutes, relating to the power to issue special purpose revenue bonds to assist not—for-profit corporations that provide health care facilities to the general public.

     SECTION 4.  The department of budget and finance is authorized, from time to time, including times subsequent to June 30, 2014, to issue special purpose revenue bonds in whatever principal amounts the department shall determine to be necessary to refund the special purpose revenue bonds authorized in section 2 and to refund special purpose revenue bonds authorized in this section, regardless of whether the outstanding special purpose revenue bonds or refunding special purpose revenue bonds have matured or are the subject of redemption or whether the refunding special purpose revenue bonds shall be bonds for the multi-project programs described in section 2.  In making this determination, the department shall comply with federal law relating to the exemption from federal income taxation of the interest on bonds of the nature authorized by this section.

     SECTION 5.  The authorization to issue special purpose revenue bonds under this Act shall lapse on June 30, 2014.

     SECTION 6.  This Act shall take effect upon its approval; provided that the authorization to issue special purpose revenue bonds pursuant to section 2 of this Act shall be contingent upon Hawaii Medical Center obtaining not-for-profit status prior to the effective date of this Act.

Report Title:

Hawaii Medical Center, Special Purpose Revenue Bonds

Description:

Authorizes the issuance of special purpose revenue bonds to assist Hawaii Medical Center provided that it obtains not-for-profit status prior to this Act taking effect.  (HB1813 HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.