Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committees on Health and Human Services and Housing, to which was referred S.B. No. 2985, S.D. 2, entitled:

beg leave to report as follows:

The purpose of this bill is to assist federally qualified health centers (FQHCs) by providing an income tax credit for costs related to qualified capital improvements.

The Waianae Coast Comprehensive Health Center testified in support of this measure.

The Department of Taxation submitted testimony opposing this measure. The Tax Foundation of Hawaii submitted comments.

To qualify as a FQHC, it must serve predominantly uninsured, poor, and indigent individuals with a high incidence of medical problems and few alternative resources. Your Committees find that a tax credit for FQHCs will assist in providing improvements to allow FQHCs to continue to provide a quality environment and services to the community.

Your Committees have amended this bill by:

As affirmed by the records of votes of the members of your Committees on Health and Human Services and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2985, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2985, S.D. 2, H.D. 1, and be referred to the Committee on Finance.