Report Title:

Special Purpose Revenue Bonds; St. Francis Healthcare

Description:

Authorizes the issuance of special purpose revenue bonds to assist St. Francis Healthcare System of Hawaii and its affiliates in financing equipment purchases and the construction and improvement of health care facilities. (CD1)

THE SENATE

S.B. NO.

3135

TWENTY-SECOND LEGISLATURE, 2004

S.D. 1

STATE OF HAWAII

H.D. 1


C.D. 1

A BILL FOR AN ACT

 

RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST ST. FRANCIS HEALTHCARE SYSTEM OF HAWAII AND ITS AFFILIATES.

 

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

SECTION 1. The legislature finds and declares that the issuance of special purpose revenue bonds under this Act is in the public interest and for the public health, safety, and welfare.

SECTION 2. Pursuant to part II, chapter 39A, Hawaii Revised Statutes, the department of budget and finance, with the approval of the governor, is authorized to issue special purpose revenue bonds in a total amount not to exceed $85,000,000, in one or more series, for the purpose of assisting St. Francis Healthcare System of Hawaii, a Hawaii nonprofit corporation, and one or more of its nonprofit affiliates, to finance the construction, improvement, and equipment of health care facilities, including:

(1) Refinancing debt;

(2) Upgrading and modernizing hospital facilities (St. Francis Medical Center and St. Francis Medical Center-West);

(3) Purchasing new equipment;

(4) Construction, equipment, and upgrade of dialysis facilities;

(5) Construction and equipment of new long-term care nursing facilities; and

(6) Other related projects for St. Francis Healthcare System of Hawaii and its subsidiaries.

The legislature finds and determines that the activities and facilities of St. Francis Healthcare System of Hawaii constitute a project as defined in part II, chapter 39A, Hawaii Revised Statutes, and the financing thereof is assistance to a not-for-profit corporation that provides health care facilities to the general public.

SECTION 3. The special purpose revenue bonds and the refunding special purpose revenue bonds issued under this Act shall be issued pursuant to part II, chapter 39A, Hawaii Revised Statutes, relating to the power to issue special purpose revenue bonds to assist not-for-profit corporations that provide health care facilities to the general public.

SECTION 4. The department of budget and finance is authorized, from time to time, including times subsequent to June 30, 2009, to issue special purpose revenue bonds in whatever principal amounts the department shall determine to be necessary to refund the special purpose revenue bonds authorized in section 2 and to refund special purpose revenue bonds authorized in this section, regardless of whether the outstanding special purpose revenue bonds or refunding special purpose revenue bonds have matured or are the subject of redemption or whether the refunding special purpose revenue bonds shall be bonds for the multi-project programs described in section 2. In making this determination, the department shall comply with federal law relating to the exemption from federal income taxation of the interest on bonds of the nature authorized by this section.

SECTION 5. The authorization to issue special purpose revenue bonds under this Act shall lapse on June 30, 2009.

SECTION 6. This Act shall take effect upon its approval.