Report Title:

Special Purpose Revenue Bonds for Hawaii Pacific Health

Description:

Authorizes special purpose revenue bonds to finance health care facilities for Hawaii Pacific Health.

THE SENATE

S.B. NO.

2052

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to Special purpose revenue bonds.

 

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 $80,000,000, in one or more series, for the purpose of assisting Hawaii Pacific Health, a not-for-profit corporation, in financing, refinancing and reimbursing costs related to the acquisition or construction of health care facilities (including, without limitation, costs related to the acquisition of Straub Hospital pursuant to the affiliation of Hawaii Pacific Health and Straub Clinic & Hospital), the renovation of existing health care facilities, the acquisition of equipment, the purchase of tangible assets (including land and improvements), the acquisition and installation of information technology, and other capital related projects for Hawaii Pacific Health or one or more of its not-for-profit affiliates, or both. The legislature finds and determines that the activities and facilities of Hawaii Pacific Health and its affiliates constitute a project as defined in part II, chapter 39A, Hawaii Revised Statutes, and the financing thereof is assistance to health care facilities.

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, 2005, 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, 2005.

SECTION 6. This Act shall take effect upon its approval.

INTRODUCED BY:

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