SB2417

SECTION 1. The legislature finds that:

(1) Sound public policy and legislation is necessary to address the development of a platform for improving the delivery and quality of health care, as well as developing a foundation for sustainable healthcare access in Maui county and the State by means of an inter-operative health information exchange in Hawaii;

(2) The delivery of health care is becoming an increasingly complex process calling upon the coordination of various caregivers;

(3) It is becoming vitally important for caregivers to be able to securely and rapidly exchange information regarding a particular patient or groups of patients in order to deliver timely, effective, and efficient medical care;

(4) There are initiatives being undertaken both at the state and federal level, across the United States, to develop regional health information organizations, which will facilitate the secure and rapid exchange of patient-identified information across the broad spectrum of physicians, hospitals, and other health care providers within a state and across state borders when needed;

(5) There is increasing evidence that the development of these information exchange systems will not only result in better and more timely care, but also more cost-efficient and error-free care;

(6) An information exchange system will greatly benefit the people of the State of Hawaii, and greatly improve the quality, timeliness, and cost-effectiveness of the medical care they receive if hospitals, health plans, physicians, and other health care providers are able to securely and rapidly exchange information regarding the treatment rendered to a particular patient or groups of patients;

(7) The Hawaii Health Information Exchange, Inc. is a nonprofit corporation recently formed by key stakeholders in the Hawaii health care community including representatives from various hospitals, health insurers, physician organizations, and other health care providers; and

(8) The Hawaii Health Information Exchange, Inc. is dedicated to the formation and operation of a health information exchange system in the State of Hawaii, which would allow a secure and rapid exchange of medical information.

The purpose of this Act is to:

(1) Effectuate the recommendations made by the Maui Health Initiative Task Force pursuant to Act 219, Session Laws of Hawaii 2007;

(2) Require a study of the adequacy of health care on Maui, including among other things, considering the establishment of a regional health information organization;

(3) Create a tax credit for medical providers practicing on Maui or any entity that provides training for health care professionals on Maui.

SECTION 2. (a) The department of health shall enter into a contract with the Hawaii Health Information Exchange, Inc. to conduct a comprehensive study of the adequacy of the existing health care delivery in the county of Maui. The study shall include, but not be limited to issues concerning:

(1) The number of physicians and other medical professionals, including specialists, to service the population;

(2) The availability of medical facilities, including hospitals, clinics, emergency care facilities, and long-term care facilities;

(3) Incentives to lure more physicians and medical professionals to practice on Maui;

(4) The sufficiency of third-party reimbursements; and

(5) Whether a separate entity, to be known as the Maui Health Information Corporation, a not-for-profit membership organization, should be formed to improve health care through the collection, analysis, and dissemination of patient-identified information to make informed decisions and guide the development of health policy.

(b) The Hawaii Health Information Exchange, Inc., with the assistance of the department of health, shall report its findings and recommendations, including recommendations for proposed legislation, if any, to the legislature no later than twenty days prior to the convening of the regular session of 2009.

SECTION 3. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235- Tax credits for physicians and medical facilities on Maui. (a) Any taxpayer who files an individual income tax return for a taxable year may claim an income tax credit under this section against the Hawaii state individual net income tax.

A qualifying taxpayer shall be a physician or osteopath licensed in this State, or a licensed medical facility referenced in section 321-11.

(b) The tax credit shall be $ ; provided that the taxpayer agrees to furnish medical services on Maui, or if the taxpayer is a licensed medical facility, to provide training to health care professionals on Maui, for a period of not less than five years from the date of the filing of the first tax return claiming a tax credit under this section and agrees to be a member and participate in the data monitoring of a regional health information organization known as the Maui Health Information Corporation.

(c) If the tax credit claimed by the taxpayer under this section exceeds the amount of the income tax payments due from the taxpayer, the excess of credit over payments due shall be refunded to the taxpayer; provided that the tax credit properly claimed by a taxpayer who has no income tax liability shall be paid to the taxpayer; and provided that no refunds or payments on account of the tax credit allowed by this section shall be made for amounts less than $1.

(d) The director of taxation shall prepare such forms as may be necessary to claim a credit under this section, may require proof of the claim for the tax credit, and may adopt rules pursuant to chapter 91 to effectuate this section.

(e) All of the provisions relating to assessments and refunds under this chapter and under section 231-23(c)(1) shall apply to the tax credit under this section.

(f) Claims for the tax credit under this section, including any amended claims, shall be filed on or before the end of the twelfth month following the taxable year for which the credit may be claimed."

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2008-2009 for the Hawaii Health Information Exchange, Inc. to conduct a study under section 2 of this Act.

The sum appropriated shall be expended by the department of health for the purposes of this Act.

SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval; provided that section 4 shall take effect on July 1, 2008; provided further that section 3 shall apply to taxable years beginning after December 31, 2007.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2417
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII