Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1620
                                        H.D. 1
                                        S.D. 1

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Health and Human Services, to which was
referred H.B. No. 1620, H.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this measure is to allow the Housing and
Community Development Corporation of Hawaii (HCDCH) to work in
partnership with private sector entities to develop health care
communities in the State.

     Your Committee received testimony in support of this measure
from the Department of Business, Economic Development, and
Tourism, Housing and Community Development Corporation of Hawaii,
Department of Planning and Permitting of the City and County of
Honolulu, Chair of the City Council of the City and County of
Honolulu, Wahiawa Hospital Association, Chamber of Commerce of
Hawaii, Oahu Physician Hospital Organization, Integrated
University of Hawaii/Wahiawa General Hospital Family Practice
Residency Program, Zane Development Group, Inc., Hawaii
Electricians Market Enhancement Program, and nine private

     This measure provides as follows:

     (1)  Requires the HCDCH, in cooperation with the private
          sector and other appropriate entities, to develop a
          master plan for the health care community;

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     (2)  Allows the HCDCH to establish a loan program for loans
          or grants for private businesses for construction of a
          health care community;

     (3)  Creates a health care community revolving fund for
          repayments of principal and interest on loans or grants
          made by the HCDCH;

     (4)  Vests the HCDCH with the corporate powers necessary to
          accomplish the purpose of this measure; and

     (5)  Authorizes the issuance of general revenue bonds to
          finance the costs of acquiring, developing, improving,
          and constructing infrastructure for a health care

     The intent of this measure is to provide health care for
seniors through creation of health care communities where
wellness and fitness go hand in hand with diagnosis and
treatment.  In health care communities, people will be empowered
to make healthy choices by having information, facilities, and
opportunities provided by a state-of-the-art health care network
that is integrated in the community.

     Your Committee finds that this measure fits nicely with
State plans to strengthen Hawaii's economy by developing science
and technology industries, and will provide a direct boost to the
health and tourism industries, the two largest industries in

     Your Committee has amended this measure by:

     (1)  Clarifying the purpose section to:

          (A)  Accurately reflect the intent of this measure that
               a medical mall would provide sufficient room for
               flexibility to meet the ever-changing requirements
               of health care;

          (B)  Delete reference to:

               (i)  The need for privately initiated development
                    and the government's role to facilitate and
                    support those efforts;

              (ii)  Legislative findings pertaining to a health
                    care community's benefits and government's
                    role in private initiatives; and

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          (C)  Add a reference to the purpose paragraph to create
               a health care community loan program;

     (2)  Clarifying that the master plan to be developed by a
          private sector entity may include a medical mall;

     (3)  Adding that private sector entities may develop health
          care communities and that the corporation may
          participate in the development;

     (4)  Deleting reference to requiring the health care
          community to include housing and commercial areas;

     (5)  Raising from ten to forty per cent the minimum portion
          of the health care development required to be directly
          related to the provision of health care;

     (6)  Adding a qualification to the minimum requirements for
          the developer to eligible for the award that no land
          shall have been acquired by eminent domain;

     (7)  Adding that the corporation may make expenditures from
          the health care community revolving fund without
          appropriation or allotment by the legislature;

     (8)  Adding that the corporation shall not be exempt from
          state or county laws, ordinances, or regulations;

     (9)  Deleting material pertaining to public-private
          partnership for development of health care communities,
          powers of the corporation, rule making for the new
          chapter, and an amendment to section 201G-12, Hawaii
          Revised Statutes; and

    (10)  Repealing the Act on July 1, 2006.

     As affirmed by the record of votes of the members of your
Committee on Health and Human Services that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 1620, H.D. 1, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B.
No. 1620, H.D. 1, S.D. 1, and be referred to the Committee on
Ways and Means.

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                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Health and Human

                                   SUZANNE CHUN OAKLAND, Chair

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