STAND. COM. REP. NO. 670

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 717
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 717 entitled: 

     "A BILL FOR AN ACT RELATING TO SPECIAL PURPOSE REVENUE
     BONDS,"

begs leave to report as follows:

     The purpose of this bill is to authorize special purpose
revenue bonds for the North Hawaii Community Hospital.

     Your Committee finds that this bill will facilitate
refinancing North Hawaii Community Hospital's long-term debt at
substantially lower interest rates.  This refinancing shifts cash
from bank payments back to expenditures in the community by as
much as $500,000 per year.

     Your Committee, however, wishes to note that the use of bond
funds for equipment purchases is questionable (page 1, line 15
and page 2, lines 2-3).  The Department of Budget and Finance
should be consulted to verify the appropriateness of such use of
bond funds.  Your Committee wishes to pass along this measure for
the purpose of promoting further discussion.

     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.
717 and recommends that it pass Third Reading.

 
a                                                           SB717
 
 
                                   STAND. COM. REP. NO. 670
                                   Page 2


                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
a                                                           SB717