STAND. COM. REP. 529

Honolulu, Hawaii

, 2003

RE: H.B. No. 434

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Health, to which was referred H.B. No. 434 entitled:

"A BILL FOR AN ACT RELATING TO SPECIAL PURPOSE REVENUE BONDS FOR NORTH HAWAII COMMUNITY HOSPITAL, INC,"

begs leave to report as follows:

The purpose of this bill is assist North Hawaii Community Hospital, Inc., (Hospital) by reauthorizing the issuance of special purpose revenue bonds in a total amount not to exceed $20,000,000 for one or more of the following projects:

(1) Retirement of outstanding debt on the Hospital's existing health care facilities;

(2) Retirement of outstanding debt and purchase of leases on the existing equipment used in connection with the Hospital's health care facilities;

(3) Construction of new additions to North Hawaii Community 2 Hospital, Inc.'s existing health care facilities;

(4) Acquisition and installation of additional equipment and other assets for use in connection with the Hospital's health care facilities; and

(5) Renovation and repair of the Hospital's existing health care facilities.

Your Committee finds that this bill will support the continued development of Hawaii County as a healing destination, create more employment opportunities, and make Hawaii a safer and healthier place for all its residents. The Hospital currently employs over 300 people and contributes significantly to the community. For the first time since commencing operations almost seven years ago, the Hospital exceeded its financial break-even point. Further, your Committee finds that the refinancing will shift as much as $250,000 per year that the Hospital would have paid to the lender, into the community.

Two councilmembers of Hawaii County, the Hospital, and a concerned citizen submitted testimony in support of this bill. The Department of Budget and Finance (B&F) commented on this measure.

Your Committee has amended this measure by giving B&F the discretion to issue refunding special purpose revenue bonds at times subsequent to June 30, 2005.

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. 434, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 434, H.D. 1, and be referred to the Committee on Finance.

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

 

____________________________

DENNIS A. ARAKAKI, Chair