STAND. COM. REP. NO. 402

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1209
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committees on Health and Economic Development and
Business Concerns, to which was referred H.B. No. 1209 entitled: 

     "A BILL FOR AN ACT RELATING TO PREPAID HEALTH CARE INCOME
     TAX DEDUCTION,"

beg leave to report as follows:

     The purpose of this measure is to provide an income tax
incentive for employers as an integral element to Hawaii's future
economic development.  A key element in a quality workforce is
the availability of health care benefits for employees.  As such,
this measure encourages employers to offer prepaid health care
benefits to employees that are otherwise not entitled to
mandatory coverage required under current law. 

     The Department of Taxation submitted testimony in support of
the measure. 

     As affirmed by the records of votes of the members of your
Committees on Health and Economic Development and Business
Concerns that are attached to this report, your Committees are in
accord with the intent and purpose of H.B. No. 1209 and recommend
that it pass Second Reading and be referred to the Committee on
Finance.

 
 
 
 
 
 
 
                                 STAND. COM. REP. NO. 402
                                 Page 2

 

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Health and
                                   Economic Development and
                                   Business Concerns,

                                   
                                   
                                   
                                   
______________________________     ______________________________
ROBERT N. HERKES, Chair            ALEXANDER C. SANTIAGO, Chair