STAND. COM. REP. NO.1328

Honolulu, Hawaii

, 2003

RE: H.B. No. 1628

H.D. 1

S.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1628, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO EDUCATIONAL LOANS,"

begs leave to report as follows:

The purpose of this measure is to provide a tax deduction for interest paid on educational loans by primary health care providers that establish a new practice in an enterprise zone.

Your Committee finds that the health care needs of rural Hawaii have not been given the attention they deserve. Generally, quality health care tends to gravitate toward urban centers such as Honolulu. Consequently, many rural areas are at a distinct disadvantage because they are not able to attract primary health care providers to their communities.

This bill provides a tax incentive to primary health care providers to encourage them to establish a new practice in underserved areas located in an enterprise zone. By providing them with a tax deduction for interest paid on the enormous costs of a medical education, this bill would not only assist the primary health care provider, but would also benefit the community served by the health care provider as well.

Your Committee has amended the bill by making technical changes.

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 H.B. No. 1628, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1628, H.D. 1, S.D. 2.

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

____________________________

BRIAN T. TANIGUCHI, Chair