Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 1399, S.D. 2, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to establish a long-term care (LTC) tax credit on the cost of LTC insurance premium payments that goes into effect upon declaration from the Governor when general fund tax collections for two successive fiscal years exceed 7.5 percent of the collections for each of the prior two fiscal years.

The Department of Taxation, Hawaii State Teachers Association, Hawaii Long Term Care Association, Chamber of Commerce of Hawaii, Healthcare Association of Hawaii, Hawaii Medical Association, American Council of Life Insurers, Health Insurance Association of America, and National Association of Insurance and Financial Advisors Hawaii submitted testimony in support of this bill. The Office of the Governor submitted testimony in support of this bill with amendments. The Department of Health submitted testimony in support of the intent of this bill. The Hawaii State Commission on the Status of Women, Kokua Council, and an individual submitted testimony in opposition to this bill. The Department of the Attorney General and Tax Foundation of Hawaii submitted comments.

Your Committee has amended this bill by:

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1399, S.D. 2, H.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, H.D. 2.