STAND. COM. REP. NO.2676
RE: S.B. No. 2899
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Your Committee on Ways and Means, to which was referred S.B. No. 2899 entitled:
"A BILL FOR AN ACT RELATING TO SPECIAL PURPOSE REVENUE BONDS,"
begs leave to report as follows:
The purpose of this measure is to make permanent the law allowing special purpose revenue bonds to be issued to assist not-for-profit corporations that provide health care facilities to the general public, by repealing the sunset provision authorizing such bonds.
The Department of Budget and Finance, the Queen's Health Systems, Hawaii Pacific Health, and Healthcare Association of Hawaii testified in support of the measure.
Your Committee notes that the State is not obligated for any payments or expenses associated with special purpose revenue bonds and that the bonds have no effect on the State's debt ceiling or debt rating. Your Committee finds that use of special purpose revenue bonds allows not-for-profit health care entities to secure low-cost capital to upgrade and enhance facilities and equipment, thus improving access to and the quality of health care for the people of Hawaii. Your Committee further finds that repealing the sunset provision authorizing such bonds will ensure that bonds currently outstanding can be refinanced to take advantage of lower interest rates and that health care facilities will be able to continue to provide the general public with access to quality healthcare services. Accordingly, your Committee finds that it is in the public interest to make available special purpose revenue bonds to lower the financing costs of not-for-profit corporations that provide health care facilities to the general public.
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 S.B. No. 2899 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
BRIAN T. TANIGUCHI, Chair