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 S.B. No. 1088, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to establish a long-term care social insurance program, setting long-term care income tax rates, manner of payment, and long-term care benefits.

Your Committee finds that Act 245, Session Laws of Hawaii 2002, established a Temporary Board of Trustees of the Long-Term Care Financing Act to study and propose a tax collection program, a tax rate, and a benefit schedule for an actuarily sound long-term care social insurance program for Hawaii taxpayers. This measure is one result of that effort.

Your Committee has amended this bill to change the effective date from upon its approval to July 1, 2015 to facilitate further discussion on this most important issue. Your Committee has also made a few technical amendments for purposes of clarity and style.

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 S.B. No. 1088, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1088, S.D. 2.