Report Title:

Special Purpose Revenue Bonds; Castle Medical Center

 

Description:

Authorizes special purpose revenue bonds to assist Castle Medical Center.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

2271

TWENTY-FOURTH LEGISLATURE, 2008

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

relating to the issuance of special purpose revenue bonds to assist castle medical center and its affiliates.

 

 

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 $    , in one or more series, for the purpose of assisting Castle Medical Center, a Hawaii not-for-profit corporation, and one or more of its nonprofit affiliates, to finance and refinance equipment purchases, and for the construction and improvement of health care facilities, including the following:

     (1)  Remodeling and rebuilding existing health care facilities;

     (2)  Constructing new health care facilities;

     (3)  Purchasing new equipment;

     (4)  Refinancing debt; and

     (5)  Other related projects for Castle Medical Center and its affiliated nonprofit affiliations.

     The legislature finds and determines that the activities and facilities of Castle Medical Center and its nonprofit affiliates constitute a project as defined in part II, chapter 39A, Hawaii Revised Statutes, and the financing thereof is assistance to a not-for-profit corporation that provides health care facilities to the general public.

     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, 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 of budget and finance shall comply with federal law relating to the exemption from federal income taxation of the interest on bonds of the nature authorized by section 2.

     SECTION 5.  The authorization to issue special purpose revenue bonds under this Act shall lapse on June 30,    .

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

 

INTRODUCED BY:

_____________________________