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. 2161 entitled:

beg leave to report as follows:

The purpose of this bill is to alleviate the burden of the high cost of prescription drugs by establishing a refundable prescription drug tax credit of ten percent of the costs of prescription drugs.

The Department of Taxation and Tax Foundation of Hawaii provided comments.

Your Committees recognize that prescription drug costs have increased dramatically. As a result, individuals with fixed incomes face economic hardship and often have to make difficult decisions to sacrifice necessities to enable them to purchase prescription drugs. While this measure will not reduce the actual cost of prescription drugs, it may provide some financial relief, and your Committees believe this measure deserves further discussion and consideration.

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. 2161 and recommend that it pass Second Reading and be referred to the Committee on Consumer Protection and Commerce.