Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 146 entitled:

begs leave to report as follows:

The purpose of this bill is to provide a general excise tax exemption for income received from the State by an adult residential care home operator, a group child care home operator, or a group child care center operator to facilitate and sustain operational growth by freeing up capital for these operators.

The Alliance of Residential Care Administrators, United Group of Home Operators, Mililani Care Home, Filipino Coalition for Solidarity, Inc., and Baris Care Home testified in support of this bill. The Hawaii Coalition of Care Home Administrators supported the intent of this measure. The Department of Taxation and Healthcare Association of Hawaii opposed this bill. The Tax Foundation of Hawaii offered 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 H.B. No. 146, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 146, H.D. 1.