STAND. COM. REP. NO.  332

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 978

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Health, to which was referred H.B. No. 978 entitled:

"A BILL FOR AN ACT RELATING TO HEALTH,"

begs leave to report as follows:

     The purpose of this bill is to authorize the Hawaii Health Systems Corporation to lease Kula Hospital's medical clinic and all of its equipment, furnishings, and fixtures, to Malama I Ke Ola Health Center (Health Center) at a rate of $1 per year for a period of ten years, with options to renew.  The lease transaction would be subject to the Procurement Code and other relevant laws.

     The Hawaii Health Systems Corporation – Maui Region and Hawaii Primary Care Association testified in support of this bill.

     Your Committee encourages stakeholders to include the Kula Community Association in its discussions regarding this measure.

     Your Committee has amended this bill by:

     (1)  Requiring the Health Center, as a condition of the lease terms, to:

          (A)  Have received federal funds during the term of the lease; and

          (B)  Maintain its status as a federally-qualified health center;

     (2)  Changing the annual lease and fixture rents to unspecified amounts; and

     (3)  Making technical, nonsubstantive amendments for 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 H.B. No. 978, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 978, H.D. 1, and be referred to the Committee on Finance.

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

____________________________

RYAN I. YAMANE, Chair