Bipartisan senators led by Sen. Jesse Lujan seek qualifying certificate tax breaks for a private entity to build a new hospital.
Senators and Adelup have been deadlocked on the location of a new Guam Memorial Hospital, the only public hospital on the island.
Bill 305-37 seeks to allow the Guam Economic Development Authority to issue qualifying certificates, offering tax incentives to private entities willing to undertake the construction and development of the new hospital or medical complex, according to a press release from Lujan’s office.
These certificates may include up to 100% rebate on income tax liability and use tax for a period of up to 30 years, ensuring substantial financial support for the project, Lujan’s office said.
Lujan’s bill, the “Espitåt Para Todu (Hospital for All) Act of 2024,” seeks to address the critical need for a modern hospital or medical facility, breaking the deadlock that has stymied the progress, the senator’s office said.
The bill’s co-sponsors are Vice Speaker Tina Rose Muña Barnes and Sens. Frank Blas Jr., Roy Quinata, Dwayne San Nicolas, Thomas Fisher, Joe San Agustin, and William Parkinson.
“I have been asked by constituents to let the people decide where the hospital should be. Bill 305 does just that. Through tax benefit incentives provided by the qualifying certificate program, this legislation invites any private individual, entity, or organization to take on the enormous task of developing and constructing the hospital wherever they deem appropriate,” Lujan said in a statement.
The bill would mandate that the development and financing plan for the new hospital be determined within six months of its passage, with construction set to commence no later than Dec. 31, 2025.
In addition to the current locations identified in Tamuning and Barrigada, the bill also negotiates for the sale or lease of other government properties also determined as suitable locations, providing flexibility in site selection while ensuring fair market value transactions.
Source: Pacific Daily News