STAND. COM. REP. NO.  1935

Honolulu, Hawaii

                , 2007

RE:   S.B. No. 1182

      S.D. 2

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 1182, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO NEEDS ALLOWANCE,"

begs leave to report as follows:

     The purpose of this bill is to provide financial relief to care home operators and patients by:

     (1)  Establishing a needs allowance of $50 per month and providing for annual increases in the allowance;

     (2)  Excluding from income tax and exempting from general excise tax the needs allowance received by an operator of a qualified facility or by an individual resident of a qualified facility; and

     (3)  Appropriating funds for the needs allowance.

     The Department of Human Services (DHS), State Council on Developmental Disabilities, Mayor of the County of Hawaii, Hawaii Long Term Care Association, Hawaii Disability Rights Center, Healthcare Association of Hawaii, Mental Health Association of Hawaii, and numerous concerned individuals testified in support of this bill.  The Department of Taxation, Disability and Communication Access Board, Coalition of Care Home Administrators, and Tax Foundation of Hawaii provided comments.

     Your Committee has amended this bill by:

     (1)  Authorizing, instead of mandating, DHS to establish and administer the monthly needs allowance;

     (2)  Removing the requirement that the needs allowance be increased annually and the specifications on the requirements pertaining to the use of the needs allowance;

     (3)  Removing the income and general excise tax exclusion and exemption;

     (4)  Changing the effective date to July 1, 2020, to encourage further discussion; and

     (5)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     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 S.B. No. 1182, S.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1182, S.D. 2, H.D. 1.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair