REPORT TITLE:
SPRB; H&MFB & SHPDA Spec Funds


DESCRIPTION:
Issues $15,000,000 in special purpose revenue bonds for Hilo
Residency Training Program, Inc.  Creates hospital and medical
facilities special fund in DOH to offset the program expenses of
the hospital and medical facilities branch; creates SHPDA special
fund to offset SHPDA's program expenses.  (HB635 SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        635
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 1999                                S.D. 1
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO HEALTH.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1                              Part I
 
 2      SECTION 1.  The legislature finds that it is in the public
 
 3 interest to encourage the development of health care in the
 
 4 State.  The legislature also finds that Hilo Residency Training
 
 5 Program, Inc., a not-for-profit Hawaii corporation, is engaged in
 
 6 the development of a health care facility in Hilo and thereby
 
 7 serves the public.
 
 8      The legislature further finds that Hilo Residency Training
 
 9 Program, Inc., may be assisted through the issuance of special
 
10 purpose revenue bonds because its health care facility is a
 
11 health care project pursuant to part II, chapter 39A, Hawaii
 
12 Revised Statutes.
 
13      The legislature finds and declares that the issuance of
 
14 special purpose revenue bonds under this Act is in the public
 
15 interest and for the public health, safety, and general welfare
 
16 of the State.
 
17      SECTION 2.  Pursuant to part II, chapter 39A, Hawaii Revised
 
18 Statutes, the department of budget and finance, with the approval
 
19 of the governor, is authorized to issue special purpose revenue
 

 
Page 2                                                     635
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 1 bonds in a total amount not to exceed $15,000,000 in one or more
 
 2 series for the purpose of assisting Hilo Residency Training
 
 3 Program, Inc., in financing, refinancing, or both, of one or more
 
 4 of the following:
 
 5      (1)  Retirement of outstanding debt on Hilo Residency
 
 6           Training Program, Inc.'s existing health care
 
 7           facilities;
 
 8      (2)  Retirement of outstanding debt and purchase of leases
 
 9           on the existing equipment used in connection with Hilo
 
10           Residency Training Program, Inc.'s existing health care
 
11           facilities;
 
12      (3)  Planning, design, construction, and operation of new
 
13           additions to Hilo Residency Training Program, Inc.'s
 
14           existing health care facilities;
 
15      (4)  Acquisition and installation of additional equipment
 
16           and other assets for use in connection with Hilo
 
17           Residency Training Program, Inc.'s existing health care
 
18           facilities; and
 
19      (5)  Renovation or repair of Hilo Residency Training
 
20           Program, Inc.'s existing health care facilities.
 
21 The legislature finds and determines that the activities and
 
22 facilities of Hilo Residency Training Program, Inc., constitute a
 
23 project as defined in part II, chapter 39A, Hawaii Revised
 

 
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 1 Statutes, and that the financing thereof is assistance to health
 
 2 care facilities.
 
 3      SECTION 3.  The special purpose revenue bonds issued under
 
 4 this Act shall be issued pursuant to part II, chapter 39A, Hawaii
 
 5 Revised Statutes, relating to the power to issue special purpose
 
 6 revenue bonds to assist not-for-profit corporations that provide
 
 7 health care facilities to the general public.
 
 8      SECTION 4.  The department of budget and finance is
 
 9 authorized to issue from time to time refunding special purpose
 
10 revenue bonds in such principal amounts as the department shall
 
11 determine to be necessary to refund the special purpose revenue
 
12 bonds issued in section 2.  In making this determination, the
 
13 department shall comply with federal law relating to the
 
14 exemption from federal income taxation of the interest on bonds
 
15 of the nature authorized under this section.
 
16      SECTION 5.  The authorization to issue special purpose
 
17 revenue bonds under this Act shall lapse on June 30, 2002.
 
18                              Part II
 
19      SECTION 6.  Chapter 321, Hawaii Revised Statutes, is amended
 
20 by adding a new section to be appropriately designated and to
 
21 read as follows:
 
22      "321-     Hospital and medical facilities special fund;
 
23 deposits; expenditures.  (a)  There is established within the
 

 
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 1 department of health, and to be administered by the department of
 
 2 health, the hospital and medical facilities special fund into
 
 3 which shall be deposited all moneys collected under section
 
 4 321-11.5(b).
 
 5      (b)  Moneys in the special fund shall be expended by the
 
 6 department only to offset the program expenses of the
 
 7 department's hospital and medical facilities branch."
 
 8      SECTION 7.  Chapter 323D, Hawaii Revised Statutes, is
 
 9 amended by adding a new section to be appropriately designated
 
10 and to read as follows:
 
11      "323D-     State health planning and development special
 
12 fund; created; deposits; expenditures; fees.  (a)  There is
 
13 established within the state treasury, and to be administered by
 
14 the state health planning and development agency, the state
 
15 health planning and development special fund into which shall be
 
16 deposited all moneys collected under chapter 323D.
 
17      (b)  Moneys in the special fund shall be expended by the
 
18 state health planning and development agency to assist in
 
19 offsetting program expenses of the agency
 
20      (c)  The agency shall adopt rules in accordance with chapter
 
21 91 to establish reasonable fees for the purposes of this
 
22 chapter."
 
23      SECTION 8.  Section 321-11.5, Hawaii Revised Statutes, is
 

 
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 1 amended to read as follows:
 
 2      "321-11.5  Establishment of fees.  (a)  The department of
 
 3 health, by rules adopted pursuant to chapter 91, may establish
 
 4 reasonable fees for [facilities seeking licensure or
 
 5 certification by the department for] the issuance or renewal of
 
 6 licenses, permits, variances, and various certificates required
 
 7 by law or by the department's rules.  The fees may include the
 
 8 cost of related examinations, inspections, investigations, and
 
 9 reviews.
 
10      (b)  All fees paid and collected under this section and from
 
11 rules adopted in accordance with chapter 91 from facilities
 
12 seeking licensure or certification by the department, including
 
13 hospitals, nursing homes, home health agencies, intermediate care
 
14 facilities for the mentally retarded, freestanding outpatient
 
15 surgical facilities, laboratories, adult residential care homes,
 
16 developmental disability domiciliary homes, and special treatment
 
17 facilities, shall be deposited into the hospital and medical
 
18 facilities special fund created under section 321-   .  Any other
 
19 entities required by law to be licensed by the department shall
 
20 also be subject to fees.  The director of health shall adopt
 
21 rules in accordance with chapter 91 to set the fees under this
 
22 subsection.
 
23      (c)  Other than the fees collected under subsection (b), all
 

 
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 1 other fees collected under this section and section 321-15 shall
 
 2 be deposited into the environmental health education fund
 
 3 established under section 321-27."
 
 4      SECTION 9.  Section 321-27, Hawaii Revised Statutes, is
 
 5 amended by amending subsection (a) to read as follows:
 
 6      "(a)  There is established within the department of health
 
 7 an environmental health education fund into which shall be
 
 8 deposited all moneys collected from fees for permits, licenses,
 
 9 inspections, various certificates, variances, investigations, and
 
10 reviews, pursuant to sections [321-11.5] 321-11.5(c) and 321-15."
 
11      SECTION 10.  Statutory material to be repealed is bracketed.
 
12 New statutory material is underscored.
 
13      SECTION 11.  This Act shall take effect upon its approval.