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SB 1127

RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST HAWAII ISLAND COMMUNITY HEALTH CENTER.

2026 Regular Session Introduced by Dru Kanuha and 1 co-sponsor

Hawaii authorizes special purpose revenue bonds for Hawaii Island Community Health Center capital projects, with repayment from center operational revenues rather than state general funds.

Carried over to 2026 Regular Session.
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Bill Summary · SB 1127

Legislative bill overview

SB 1127 authorizes the State of Hawaii to issue special purpose revenue bonds to finance capital improvements and operations at the Hawaii Island Community Health Center. The bonds would be repaid through revenues generated by the health center's operations rather than general state funds. This financing mechanism allows the center to undertake facility upgrades or expansions without immediately requiring appropriations from the state general fund.

Why is this important

Hawaii Island Community Health Center provides essential primary care and preventive health services to rural and underserved populations on the Big Island. This bond authorization could enable facility modernization, expanded services, or improved infrastructure to better serve residents in areas with limited healthcare access. The structure shifts repayment responsibility to the health center's operational revenues, which requires confidence in the center's financial sustainability.

Potential points of contention

  • Financial viability concerns: Special purpose revenue bonds require the health center to generate sufficient ongoing revenue to service debt; if patient volumes or reimbursement rates decline, the center could face financial stress
  • Public accountability: Revenue bond financing reduces direct legislative oversight of capital decisions, as repayment depends on the health center's independent financial management
  • Opportunity cost: Revenue pledged to bond repayment reduces funds available for operational improvements, staff compensation, or service expansion at the health center

Compiled from official sources — confirm details with the bill’s official record.

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