Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1620
                                        H.D. 1
                                        S.D. 2

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


     Your Committee on Ways and Means, to which was referred H.B.
No. 1620, H.D. 1, S.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this bill is to authorize the Housing and
Community Development Corporation of Hawaii to work in
partnership with private sector entities to develop health care
communities in the State.

     In addition, this bill creates a health care community loan
program for private sector entities for the construction of a
health care community, of which a minimum of forty per cent of
the health care community development must be directly related to
the provision of health care.  This bill establishes a health
care community revolving fund to make loans to businesses for the
construction of the health care community.  The bill also
authorizes the issuance of general obligation bonds to finance
the cost of the acquisition, development, improvement, and
construction of infrastructure for a health care community.

     Your Committee finds that, as Hawaii's population ages,
there is a growing problem of providing health care for seniors.
Greater emphasis must be placed on creating health care

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                                   STAND. COM. REP. NO. 1519
                                   Page 2

communities where wellness and prevention go hand in hand with
diagnosis and treatment.  In these communities, people will be
empowered to make healthy choices in part by having information,
facilities, and opportunities provided by an integrated state-of-
the-art health care network integrated within the community.

     Your Committee further finds that the development of health
care communities through a public-private partnership, including
the development of "medical malls", provides a workable solution
to the problem of providing health care for seniors, and will
also provide a direct boost to the health and tourism industries,
the two largest industries in the State.  Because health care is
a clean, quiet industry, health care communities will also bring
jobs closer to residential areas without negatively affecting
those areas.

     Upon further consideration, your Committee has amended the
bill's provision relating to limitation of powers by deleting the
words "relating to permitting, planning, zoning, construction
standards, development and improvements of land, and the
construction of structures on that land."  As amended, a health
care community development is not exempt from any statute,
ordinance, charter provision, or rules of any state or county
governmental agency, without qualification.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
1620, H.D. 1, S.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as H.B. No. 1620,
H.D. 1, S.D. 2.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,

                                 CAROL FUKUNAGA, Co-Chair

                                 ANDREW LEVIN, Co-Chair

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