STAND. COM. REP. NO. 63

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1610

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

 

Madam:

 

     Your Committee on Health, to which was referred S.B. No. 1610 entitled:

 

"A BILL FOR AN ACT RELATING TO GENERAL EXCISE TAX,"

 

begs leave to report as follows:

 

     The purpose of this measure is to reduce health care costs for private hospitals and their patients.

 

     The measure accomplishes this purpose by providing a general excise tax exemption to private hospitals that have an annual patient population consisting of sixty per cent or more of individuals who are uninsured, or Medicaid or Medicare recipients.

 

     Your Committee received testimony in support of this measure from one individual.

 

     Your Committee finds that health care costs are increasing more rapidly than the cost of living.  In addition, many private hospitals care for patients who do not have insurance, or who are Medicaid or Medicare recipients.  This results in many unpaid or underpaid health care bills that hospitals often absorb.

 

     Your Committee anticipates that this measure will have a fiscal impact on the State's general fund; however, a statement to this effect was not submitted by the Department of Taxation or any other state agency.

 

     As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1610 and recommends that it pass Second Reading and be referred to the Committee on Economic Development and Taxation.

 

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

 

 

 

____________________________

DAVID Y. IGE, Chair