STAND. COM. REP. NO. 962

Honolulu, Hawaii

, 2005

RE: H.B. No. 97

H.D. 2

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 97, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO LONG-TERM CARE,"

begs leave to report as follows:

The purpose of this bill is to encourage individuals and employers to purchase long-term care contracts by establishing:

(1) A long-term care refundable tax credit for long-term care insurance premium payments made by individual taxpayers for the purchase of qualified long-term care insurance contracts; and

(2) A long-term care nonrefundable tax credit for premium payments made by employers to purchase qualified long-term care insurance contracts for their employees.

The Department of Commerce and Consumer Affairs, AssistGuide, The Chamber of Commerce of Hawaii, American Council of Life Insurers, and State Farm Mutual Automobile Insurance Company testified in support of this bill. The Department of Taxation, Association of Insurance and Financial Advisors Hawaii, and Health Care Association of Hawaii supported this bill but suggested amendments. The Department of Health supported the intent of this bill but suggested amendments. The Tax Foundation of Hawaii offered comments.

Your Committee has amended this bill by:

(1) Changing the effective date to July 1, 2010, to promote further discussion; and

(2) Making technical, nonsubstantive amendments for style, clarity, and consistency.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 97, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 97, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

 

____________________________

DWIGHT TAKAMINE, Chair