STAND. COM. REP. NO.  427-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 2519

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Higher Education, to which was referred H.B. No. 2519, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HEALTH CARE,"

begs leave to report as follows:

     The purpose of this bill is to address the critical shortage of health care professionals in Hawaii by providing incentives for physicians and dentists to work in health professional shortage areas (HPSAs) of the state.  Specifically, this bill:

     (1)  Establishes and appropriates funds for the Hawaii Health Corps that will provide loan repayment and stipends for physicians and dentists who agree to work in HPSAs and as first responders during civil defense and other emergencies; and

     (2)  Expands and appropriates funds for the Enterprise Zone Business Tax Credit, general excise tax exemption, and other business incentives to include physicians and dentists who establish or maintain practices in areas designated as enterprise zones that are located in a HPSA.

     The State Council on Developmental Disabilities, Healthcare Association of Hawaii, Kaiser Permanente Hawaii, and Hawaii Association of Health Plans testified in support of this bill.  The University of Hawaii and Hawaii Health Systems Corporation supported the intent of this measure.  The Department of Taxation and Department of Business, Economic Development, and Tourism offered comments.

     Your Committee has amended this bill by:

     (1)  Changing all appropriation to unspecified amounts; and

(2)  Changing its effective date to July 1, 2020, to encourage further discussion.

Your Committee has also made technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Higher Education that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2519, H.D. 1, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as H.B. No. 2519, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Higher Education,

____________________________

JERRY L. CHANG, Chair