STAND. COM. REP. 432

Honolulu, Hawaii

, 2003

RE: H.B. No. 1382

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committees on Human Services and Housing and Health, to which was referred H.B. No. 1382 entitled:

"A BILL FOR AN ACT RELATING TO TAX CREDIT INCENTIVES FOR HEALTH CARE PROVIDERS,"

beg leave to report as follows:

The purpose of this bill is to encourage health care providers to practice in underserved areas by establishing a primary health care practice tax credit for qualified newly established practices in state enterprise zones.

The Hawaii Dental Association's Dental Samaritans and Ohana Dental Center testified in support of this measure. The Department of Taxation (DoTax) and Tax Foundation of Hawaii submitted comments.

Your Committees find that health care practices are scarce in underserved areas, primarily because the populations in these areas are either uninsured or insured under Medicaid or QUEST. Medicaid reimbursements are typically far below the cost of care, making it economically unfeasible for doctors and dentists to practice in underserved areas. Your Committees believe that a tax credit would provide a great incentive to health care providers to practice in underserved areas, as well as provide the service these populations need.

Your Committees respectfully request the Committee on Finance to address the concern of DoTax that a minimum number of service hours per year should be required to qualify for this tax credit.

Your Committees have amended this bill by:

(1) Inserting the definition of "primary health care provider;" and

(2) Making technical, nonsubstantive amendments for purposes of clarity, conformity, and style.

As affirmed by the records of votes of the members of your Committees on Human Services and Housing and Health that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1382, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1382, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Human Services and Housing and Health,

 

____________________________

DENNIS A. ARAKAKI, Chair

____________________________

MICHAEL PUAMAMO KAHIKINA, Chair