Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1066, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to encourage employers to provide healthcare insurance for part-time employees through the establishment of a Part-time Employee Health Care Coverage Premium Tax Credit equal to the lesser of:

(1) An unspecified dollar amount for each employee; or

Testimony in support of this bill was received from the Hawaii Medical Service Association. The Department of Taxation testified in opposition.

Your Committee finds that, even though some individuals may hold more than one part-time job, they are not covered by healthcare insurance under the Prepaid Health Care Act. The wages of most of these employees are not sufficient for them to afford private healthcare insurance. This bill would make it easier for employers to provide healthcare coverage for these employees.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1066, H.D. 1, and recommends that it be referred to the Committee on Finance.