STAND. COM. REP. NO. 636

Honolulu, Hawaii

RE: S.B. No. 506

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 506, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST WAHIAWA GENERAL HOSPITAL,"

begs leave to report as follows:

The purpose and intent of this measure is to authorize the issuance of special purpose revenue bonds to facilitate the consolidation, liquidation, or both, of the long—term debt of Wahiawa General Hospital in order to facilitate its continued operation as a health care facility.

Your Committee received written comments in support of this measure from Wahiawa General Hospital and Wahiawa-Whitmore Village Neighborhood Board No. 26.

Your Committee received written comments on this measure from the Department of Budget and Finance.

Your Committee recognizes that Wahiawa General Hospital provides critical services, primarily for residents of Central Oahu and the North Shore of Oahu, but also has addressed the needs of the entire State during the coronavirus disease 2019 (COVID-19) pandemic. Your Committee finds that the hospital plans to develop its campus to serve the growing population in central Oahu. However, your Committee further finds that the hospital cannot move forward with its plans because the hospital has experienced severe financial difficulties due to circumstances beyond its control, and these financial challenges have resulted in Wahiawa General Hospital's inability to repay certain long-term debts.

Your Committee has amended this measure by:

(1) Authorizing the special purpose revenue bonds to be refunded after June 30, 2026, which is the lapsing date of the authorization for the issuance of special purpose revenue bonds; and

(2) Making technical nonsubstantive changes for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 506, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 506, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair