STAND. COM. REP. NO. 1286
Honolulu, Hawaii
RE: H.B. No. 1255
H.D. 1
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Second State Legislature
Regular Session of 2023
State of Hawaii
Sir:
Your Committee on Health and Human Services, to which was referred H.B. No. 1255, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO SPECIAL PURPOSE REVENUE BONDS,"
begs leave to report as follows:
The purpose and intent of this measure is to:
(1) Authorize the issuance of special purpose revenue bonds to assist West Maui Hospital Foundation, Inc. in the construction of West Maui Hospital and Medical Center in the County of Maui, including any necessary infrastructure; and
(2) Require the County of Maui to serve as guarantor of any debt service on the special purpose revenue bonds.
Your Committee received testimony in support of this measure from the Office of the Mayor of the County of Maui; Maui County Council; Maui Hotel & Lodging Association; West Maui Hospital Foundation, Inc.; Maui Chamber of Commerce; and nine individuals. Your Committee received comments on this measure from the Department of Budget and Finance.
Your Committee finds that despite West Maui being home to several of Maui County's largest residential communities and renowned as one of Hawaii's premier visitor destinations, the region has no acute care hospital or related medical campus. Your Committee further finds that the unprecedented projected rates of growth in the number of residents and visitors in the region will substantially increase health care demands for an already underserved West Maui population. West Maui Hospital Foundation, Inc. is embarking on a project to complete the West Maui Hospital and Medical Center, a five-bed critical access hospital with a twenty-four-hour emergency room, three operating rooms, radiology, laboratory, pharmacy, and inpatient and outpatient services. Your Committee finds that this project will provide the West Maui region with its first acute care hospital and create significant job opportunities for local residents trained in health care. Your Committee therefore finds that authorizing the issuance of special purpose revenue bonds to assist in the financing of this project is in the best interest of public health.
Your Committee notes the testimony of the Department of Budget and Finance that should this measure be approved, approval of the issuance of the special purpose revenue bonds and conduit loan will require further review of the financing proposal to ensure compliance with all federal, state, and credit underwriting requirements.
Your Committee also notes that Act 182, Session Laws of Hawaii 2022, placed a moratorium on the issuance of new private activity bonds within the period after June 30, 2022, and before December 31, 2028, by prohibiting the authorization of special purpose revenue bonds requiring an allocation of the annual state ceiling under section 39B-2, Hawaii Revised Statutes, unless requested by the Governor and approved by the Legislature. Accordingly, amendments to this measure are necessary to explicitly exempt the special purpose revenue bonds issued pursuant to this measure from the limitation of Act 182, Session Laws of Hawaii 2022.
Accordingly,
your Committee has amended this measure by:
(2) Making
technical, nonsubstantive amendments for the purposes of clarity and
consistency.
As affirmed by the record of votes of the members of your Committee on Health and Human Services that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1255, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1255, H.D. 1, 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 and Human Services,
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________________________________ JOY A. SAN BUENAVENTURA, Chair |
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