STAND. COM. REP. NO.  745

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1550

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Health, to which was referred H.B. No. 1550 entitled:

"A BILL FOR AN ACT RELATING TO THE GENERAL EXCISE TAX,"

begs leave to report as follows:

     The purpose of this bill is to assist private hospitals in providing care to Medicaid and Medicare patients by exempting them from the general excise tax, if 60 percent or more of their patient population consists of Medicaid and Medicare patents.  This bill also requires the hospital receiving the benefit to submit verification to the Department of Taxation (DOTAX) and requires DOTAX to adopt rules.

     The Hawaii Medical Center, Community Work Day Program, and an individual testified in support of this bill.  DOTAX and the Tax Foundation of Hawaii submitted comments.

     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 H.B. No. 1550 and recommends that it pass Second Reading and be referred to the Committee on Finance.

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

____________________________

JOSHUA B. GREEN, M.D., Chair