Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Human Services and Health and Commerce, Consumer Protection, and Housing, to which was referred S.B. No. 841 entitled:

beg leave to report as follows:

The purpose of this measure is to provide employers with a non-refundable tax credit for the purchase of qualified long-term care insurance premiums paid for their employees.

The Governor, the Department of Health, the Department of Taxation, the American Council of Life Insurers, Healthcare Association of Hawaii, the Chamber of Commerce of Hawaii, AssistGuide, Inc., and the National Association of Insurance and Financial Advisors submitted testimony in support of this measure.

Your Committees find that the rapid growth of the elderly and disabled populations will result in extraordinary demands on the delivery of long-term care services. Providing long-term care to family members in need negatively impacts worker productivity in the workforce. This measure encourages employers to purchase qualified long-term care insurance contracts for their employees and ensures that such qualified long-term care insurance contracts cover both home and community-based care in addition to coverage for long-term care in intermediate care facilities and skilled nursing facilities.

Upon further consideration, your Committees have amended this measure by changing the effective date to July 1, 2010 to encourage further discussion of this matter, including a drop-dead provision, and making technical, non-substantive amendments for clarity and style.

As affirmed by the records of votes of the members of your Committees on Human Services and Health and Commerce, Consumer Protection, and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 841, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 841, S.D. 1, and be referred to the Committee on Ways and Means.