STAND. COM. REP. NO. 321-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2532
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Health, to which was referred H.B. No.
2532 entitled: 

     "A BILL FOR AN ACT RELATING TO HAWAII HEALTH SYSTEMS
     CORPORATION,"

begs leave to report as follows:

     The purpose of the bill is to authorize the Hawaii Health
Systems Corporation (HHSC) to issue bonds.  More specifically,
this bill:

     (1)  Authorizes HHSC to issue revenue bonds for $38,000,000; 

     (2)  Authorizes the Department of Budget and Finance (B&F)
          to guarantee the bonds;

     (3)  Appropriates the funds for plans, site development,
          construction, equipment, and furnishings to include a
          diagnostic and progressive care center adjacent to Maui
          Memorial Medical Center (Medical Center); and

     (4)  Clarifies HHSC's powers not to dispose all or
          substantially all of its property.


 
 
 
 
 
 
 
                                 STAND. COM. REP. NO. 321-00
                                 Page 2

 
     B&F, the Medical Center, The Chamber of Commerce of Hawaii,
and the Maui Region Public Health Facility Management Advisory
Committee submitted testimony in support of this measure.  The
Hawaii Government Employees Association submitted testimony in
support of the general purpose of this bill

     Your Committee finds that the Medical Center, the only acute
inpatient care facility on Maui, needs to improve its
infrastructure to focus on preventive care, outpatient, and
ambulatory services.  In the present health care environment,
such services are necessary for the survival of the Medical
Center.  The revenue bonds, without a guaranty by the State, are
not issuable by the HHSC.

     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.
2532 and recommends that it pass Second Reading and be referred
to the Committee on Finance.

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



                                   ______________________________
                                   ALEXANDER C. SANTIAGO, Chair