Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Health and Human Services, to which was referred H.B. No. 230 entitled:

beg leave to report as follows:

The purpose of this bill is to encourage doctors and dentists to practice in areas underserved by these two professions by allowing a tax credit equal to forty percent of the amount they pay for malpractice insurance if they serve in these designated areas.

The Consumer Lawyers of Hawaii and Healthcare Association of Hawaii supported this measure. The Department of Taxation commented on this measure.

Your Committees find that medical and dental care are becoming increasingly scarce in many areas of the state, and that this bill is a strong measure that will help to reverse this trend. The people of Hawaii deserve to have quality healthcare in an easily accessible location throughout our state.

To more fully address the issue of healthcare in underserved areas your Committees have amended this bill to remove the specified percentage for the tax credit and allow a tax credit in an unspecified amount to physicians who practice in specialty disciplines which many are reluctant to pursue due their noticably higher cost of malpractice insurance. Technical, nonsubstantive amendments were also made for the purposes of clarity, accuracy and style.

As affirmed by the records of votes of the members of your Committees on Health and Human Services that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 230, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 230, H.D. 1, and be referred to the Committee on Finance.