STAND. COM. REP. NO. 136

Honolulu, Hawaii

RE: S.B. No. 506

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Health, to which was referred S.B. No. 506 entitled:

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST WAHIAWA GENERAL HOSPITAL,"

begs leave to report as follows:

The purpose and intent of this measure is to authorize the issuance of special purpose revenue bonds to restructure certain long-term debts owed by Wahiawa General Hospital.

Your Committee received testimony in support of this measure from Wahiawa General Hospital.

Your Committee finds that Wahiawa General Hospital has experienced severe financial difficulties due to circumstances beyond its control. Your Committee further finds that due to these financial difficulties, Wahiawa General Hospitals has been unable to repay certain long-term debts. However, the hospital continues to provide critical services particularly for those who reside in Central Oahu and the North Shore of Oahu. Your Committee notes that the hospital also opened a much needed COVID‑19 Sub-Acute Isolation Unit to address the healthcare needs of the entire State during the global pandemic. Despite its challenges, Wahiawa General Hospital plans to develop its campus to serve the growing population in central Oahu but cannot move forward due to its current financial liabilities.

Your Committee has amended this measure by:

(1) Amending the purpose section for clarity;

(2) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(3) Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

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 S.B. No. 506, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 506, S.D. 1, and be referred to your Committee on Ways and Means.

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

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JARRETT KEOHOKALOLE, Chair