HI HB706

Authorizes the Department of Budget and Finance to issue special purpose revenue bonds not to exceed $12,000,000 to assist Wahiawa General Hospital with debt consolidation and liquidation.

Bonds are issued under Part II, Chapter 39A of Hawaii Revised Statutes to support the hospital's continued operation and preserve health and safety services in central Oahu.

Hospital has faced severe financial difficulties over 15 years due to competition from Queen's Medical Center West Oahu, inadequate Medicare/Medicaid reimbursement rates (affecting 85% of patients), physician shortages, and mandated indigent care provision.

Department may issue refunding bonds after June 30, 2021 in whatever amounts necessary to refund previously issued bonds, subject to federal tax exemption requirements.

Authorization to issue bonds lapses on June 30, 2026, and the Act takes effect on July 1, 2060.