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. 1399, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to provide an income tax credit to offset the cost of long-term care insurance premiums.

Your Committee finds that there is a growing need for long-term care insurance. Due to medical advances, people are living longer and, generally, require long-term care as they grow older. The costs for long-term care, however, are significant, and consequently there is a need by the elderly and their families for financial assistance.

This bill provides the means to assist those with long-term care insurance expenses by providing a tax credit to offset the costs of long-term care insurance premiums. Although your Committee has left the amount of the tax credit blank, your Committee intends to continue discussions on this matter.

Your Committee has amended the bill by making technical amendments that have no substantive effect.

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. 1399, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1399, S.D. 2.