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, to which was referred S.B. No. 865 entitled:

beg leave to report as follows:

The purpose of this measure is to provide a $500 income tax credit for caregivers of "eligible care recipients", require an annual report to the Legislature, and impose criminal sanctions for falsifying tax status. This measure also sunsets the tax credit after five years.

Testimony in support of this measure was submitted by an individual. The Healthcare Association of Hawaii and the Policy Advisory Board for Elder Affairs supported the intent of this measure with reservations. Comments were submitted by the Tax Foundation of Hawaii.

Your Committees find that, with Hawaii's growing elderly population, the care of our seniors has become a serious problem. Unless families can afford expensive private care services for their elderly relatives, they are forced to care for them in their own homes. Further, families that provide long-term care for their loved ones within their homes, instead of placing them in costly institutional care, takes an emotional as well as a financial toll on the caregivers. Your Committees believe that incentives need to be provided for these caregivers to be able to continue providing long-term care for their loved ones.

Your Committees have amended this measure by making technical changes for purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Human Services and Health that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 865, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 865, S.D. 1, and be referred to the Committee on Ways and Means.