STAND. COM. REP. NO.  901

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 978

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 978, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HEALTH,"

begs leave to report as follows:

     The purpose of this bill is to provide comprehensive health care services to individuals on the island of Maui by authorizing 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 an undetermined rate for a period of ten years, with the option to renew the lease for up to two additional terms of five years each.  The lease transaction would be subject to the Procurement Code and other relevant laws.

     The Kula Community Association and Health Center supported this bill.

     Your Committee has amended this bill by changing its effective date to July 1, 2030, to encourage further discussion.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 978, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 978, H.D. 2.

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

____________________________

MARCUS R. OSHIRO, Chair