STAND. COM. REP. NO.  1033

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1378

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1378 entitled:

"A BILL FOR AN ACT MAKING AN EMERGENCY APPROPRIATION TO THE DEPARTMENT OF HEALTH,"

begs leave to report as follows:

     The purpose of this bill is to appropriate emergency funding to the Department of Health (DOH) to ensure the health and safety of residents on the north shore and windward coast of Oahu by preventing the closure of Kahuku Hospital.

     Pursuant to the requirements set forth in Article VII, Section 9, of the Hawaii State Constitution, the Governor, in her Governor's Message No. 239 to the Legislature, requested immediate consideration and passage of this bill by the Legislature citing an existing critical funding shortage.

     This bill appropriates general funds for fiscal year 2006-2007 to fund a grant pursuant to chapter 42F, Hawaii Revised Statutes, to Kahuku Hospital to address the estimated cash shortfall projected for the first six months of 2007, consisting of:

     (1)  Operating losses;

     (2)  The costs of Kahuku Hospital's Chapter 11 reorganization proceeding; and

     (3)  The transfer of Kahuku Hospital to the Hawaii Health Systems Corporation.

     DOH, the Healthcare Association of Hawaii, and several concerned individuals testified in support of this bill.  The Department of the Attorney General offered comments.

     Your Committee has amended this bill by:

     (1)  Adding a new section which provides the reasons why and the amount and rate by which the appropriation contained in this bill exceeds the state spending limit to comply with statutory and constitutional requirements; and

     (2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1378, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1378, H.D. 1.

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

____________________________

MARCUS R. OSHIRO, Chair