STAND. COM. REP. NO. 773

Honolulu, Hawaii

RE:    S.B. No. 11

       S.D. 3

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 11, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO EXCISE TAX ON HEALTH CARE,"

begs leave to report as follows:

     The purpose of this measure is to exempt medical services, hospital charges, and rehabilitation services from the county surcharge on state tax.

     The Mayor of the County of Hawaii, Healthcare Association of Hawaii, Hawaii Society of Clinical Oncology, and seven individuals provided written comments in support of this measure.  The Hawaii Coalition of Care Home Administrators submitted written comments in opposition.  The Department of Taxation and Tax Foundation of Hawaii provided written comments.

     Your Committee finds that rising health care costs contribute to Hawaii's already high cost of living, and this measure would provide some relief for Hawaii residents struggling to balance payments for their medical needs against other necessities.

     Your Committee has amended this measure by:

     (1)  Clarifying that medical practitioners are physicians, osteopaths, and dentists; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and style.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 11, S.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 11, S.D. 3.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair