STAND. COM. REP. NO. 112

Honolulu, Hawaii

RE:    S.B. No. 967

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Health, to which was referred S.B. No. 967 entitled:

"A BILL FOR AN ACT RELATING TO HEALTH,"

begs leave to report as follows:

     The purpose of this measure is to minimize financial burdens of individuals who choose to save the life of others by becoming living organ donors.

     The measure attempts to accomplish this purpose by enabling organ donors to deduct up to $10,000 in travel and lodging expenses and lost wages from their adjusted gross income.

     Your Committee received testimony in support of this measure from the American Liver Foundation, the Organ Donor Center of Hawaii, and four individuals.  The Tax Foundation of Hawaii submitted comments.

     Your Committee strongly supports the principle that human organs should not be bought or sold.  However, your Committee finds that organ donations should not be a financial burden to families or donors.

     Your Committee amended this measure by clarifying that the tax deduction may carry over to the taxable year following the year of organ donation when the expenses incurred in the following year are a direct result of the organ donation.

     Your Committee further amended this measure to include lost income of individuals that are self-employed as a deductible expense.

     Your Committee did not receive a fiscal impact statement on this measure from the Department of Taxation or any other state agency.

     As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 967, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 967, S.D. 1, and be referred to the Committee on Economic Development and Taxation.

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

____________________________

DAVID Y. IGE, Chair