STAND. COM. REP. NO.  407-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 2758

      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 Committee on Health, to which was referred H.B. No. 2758 entitled:

"A BILL FOR AN ACT RELATING TO HEALTH,"

begs leave to report as follows:

     The purpose of this bill is to ensure the strength of Hawaii's health care safety net by requiring the Department of Taxation (DOTAX) to defer general excise tax (GET) collection for the Hawaii Medical Center for hospital operations between July 1, 2008, and an unspecified date.

     The Hawaii Medical Center and several concerned individuals supported this bill.  DOTAX submitted comments.

     Your Committee has amended this bill by:

(1)  Removing references to Hawaii Medical Center;

(2)  Clarifying that the GET exemption will be for any private hospital group in a county with a population greater than 500,000 with an annual patient population that consists of 60 percent or more of uninsured, Medicaid, and Medicare patients; and

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

     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. 2758, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2758, H.D. 1, 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