Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Health, to which was referred H.B. No. 2035 entitled:

begs leave to report as follows:

The purpose of this bill is to provide a general excise tax exemption for the provision of medical services. This bill broadly defines medical services to include hospitals, adult residential care homes, surface and air ambulances, as well as providers such as chiropractors, dentists, occupational therapists, optometrists, speech pathologists, and podiatrists.

The Healthcare Association of Hawaii testified in support of this measure.

Your Committee finds that the general excise tax is one of the factors contributing to the high cost of medical services in Hawaii that heavily impacts the elderly, disabled, sick, and poor.

As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2035 and recommends that it pass Second Reading and be referred to the Committee on Finance.