STAND. COM. REP. 359
Honolulu, Hawaii
, 2003
RE: H.B. No. 1616
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Second State Legislature
Regular Session of 2003
State of Hawaii
Sir:
Your Committees on Health and Human Services and Housing, to which was referred H.B. No. 1616 entitled:
"A BILL FOR AN ACT RELATING TO LONG-TERM CARE,"
beg leave to report as follows:
The purpose of this bill is to:
(1) Establish a long-term care income tax starting at $144 for the 2006 taxable year and increasing incrementally thereafter; and
(2) Provide a benefit level beginning at $70 per day for 365 days and increasing incrementally thereafter.
The Hawaii State Commission on the Status of Women, Hawaii Long Term Care Association, Coalition for Affordable Long Term Care, Healthcare Association of Hawaii, Kokua Council, ILWU Local 142, Coalition for Affordable Long Term Care, Temporary Board of Trustees of the Long Term Care Financing Act, and many concerned individuals testified in support of this measure. The Faith Action for Community Equity supported the intent of this measure.
The Chamber of Commerce of Hawaii, Association of Insurance and Financial Advisors, Legislative Information Services of Hawaii, Health Insurance Association of America, and Hawaii Medical Association opposed this measure. The Department of Taxation, Office of Information Practices, and Tax Foundation of Hawaii offered comments.
Your Committees recognize that Hawaii is facing a long-term care crisis. Although private long-term care insurance is available, only a small percentage of individuals have purchased it. Private long-term care insurance is unaffordable for many people. Some argue that $70 per day is not enough to pay for care in a long-term care facility, but that $70 may pay for services to keep an individual at home and out of a facility.
Your Committees have amended this bill by:
(1) Clarifying that individuals with incomes under the federal poverty level are exempt from the long-term care income tax; and
(2) Making technical, nonsubstantive amendments for purposes of clarity, conformity, and style.
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 H.B. No. 1616, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1616, H.D. 1, and be referred to the Committee on Finance.
Respectfully submitted on behalf of the members of the Committees on Health and Human Services and Housing,
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____________________________ MICHAEL PUAMAMO KAHIKINA, Chair |
____________________________ DENNIS A. ARAKAKI, Chair |
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