STAND. COM. REP. NO.  462-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 2759

      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. 2759 entitled:

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

begs leave to report as follows:

     The purpose of this bill is to ensure the strength of Hawaii's health care safety net by extending the general excise tax (GET) exemption for nonprofit hospitals, infirmaries, and sanitaria to for-profit hospitals, infirmaries, and sanitaria and by making conforming amendments.

     The Hawaii Medical Center and several concerned individuals supported this bill.  The Department of Taxation submitted comments.

     Your Committee has amended this bill by:

(1)  Clarifying that for-profit hospitals that provide services to an annual patient population consisting of 60 percent or more uninsured, Medicaid and Medicare patients will receive the GET exemption; and

(2)  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. 2759, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2759, 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