STAND. COM. REP. NO.  545-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 2197

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committees on Health and Human Services & Housing, to which was referred H.B. No. 2197 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

beg leave to report as follows:

     The purpose of this bill is to assist people who carry the financial burdens associated with providing care for a qualified care recipient by providing them with a tax credit up to a $1,000 based upon their annual adjusted gross income.

     The Policy Advisory Board for Elder Affairs, Kokua Council, National Multiple Sclerosis Society, and a concerned individual supported this bill.  The Disability and Communication Access Board supported the intent of this measure.  The Department of Taxation, Department of the Attorney General, Executive office on Aging (EOA), Tax Foundation of Hawaii, and a concerned individual submitted comments.

     Your Committees find that caregivers need more affordable services and financial assistance.  To provide some assistance through the tax credit established by this bill, it is estimated that an appropriation of $43.6 million will be necessary.

     Your Committee has amended this bill by:

(1)  Clarifying that the type of information provided by EOA to each person claiming the tax credit should include information about support groups, referral services, training, conferences, community education notices, and a caregiver newsletter;

(2)  Providing that a qualified care recipient may be 18 years of age or older;

(3)  Including disabled persons as qualified care recipients; and

(4)  Making technical, nonsubstantive changes for clarity, consistency, and style.

     As affirmed by the records of votes of the members of your Committees on Health and Human Services & Housing that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2197, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2197, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Health and Human Services & Housing,

____________________________ MAILE SHIMABUKURO, Chair

____________________________ JOSHUA B. GREEN, M.D., Chair