Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committees on Human Services and Housing and Health, to which was referred H.B. No. 2109 entitled:

beg leave to report as follows:

The purpose of this bill is to encourage residents to purchase long-term care insurance by providing a tax credit for long-term care insurance premiums, regardless of adjusted gross income, of the lesser of:

The American Council of Life Insurers, Hawaii Long Term Care Association, State Farm Mutual Automobile Insurance Company, and Healthcare Association of Hawaii testified in support of this measure. NAIFA Hawaii and the Department of Health, Executive Office on Aging supported the intent of this measure. The Attorney General and Department of Taxation provided comments.

Your Committees find there is rapid growth in the elderly and disabled populations of Hawaii, increasing the need for long-term care insurance. This bill establishes a tax credit to encourage younger individuals to purchase long-term care insurance.

Your Committees have amended this bill by:

As affirmed by the records of votes of the members of your Committees on Human Services and Housing and Health that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2109, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2109, H.D. 1, and be referred to the Committee on Finance.