STAND. COM. REP. NO. 3520

Honolulu, Hawaii

RE:    S.R. No. 15

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.R. No. 15 entitled:

"SENATE RESOLUTION REQUESTING THE DEPARTMENT OF TAXATION TO REPORT TO THE LEGISLATURE ON IMPLEMENTING THE TAX INCENTIVE RECOMMENDATION OF THE MAUI HEALTH INITIATIVE TASK FORCE TO ENCOURAGE THE FORMATION OF AN ADEQUATE MEDICAL SERVICES INFRASTRUCTURE TO CARE FOR THE RESIDENTS OF MAUI,"

begs leave to report as follows:

     The purpose of this measure is to request the Department of Taxation to conduct a study on implementing recommendations of the Maui Health Initiative Task Force relating to various proposed tax credits.

     Specifically, this measure requests the Department of Taxation to study the projected tax revenue loss and details regarding the administrative implementation of the following proposed state tax credits:

(1)  For health care providers, facilities, and services related to the provision of health care or the training of health care professionals in Hawaii;

(2)  To encourage the development, maintenance, and operation of electronic medical records systems that are inter-operable with Hawaii's regional health information organization;

     (3)  For families caring for loved ones at home; and

(4)  For private entities that obtain land for and to build alternative long-term care beds to provide for Medicaid patients.

     The Department of Taxation is requested to report findings and recommendations to the Legislature and the Governor before December 1, 2008.  Finally, this measure requests the Department of Taxation to conduct a legislative informational briefing on its report after the Department files its report.

     The Department of Taxation offered comments concerning this measure.

     Your Committee finds that the Department of Taxation has the data and expertise to conduct the requested study.  The request for such a study to determine projected revenue loss and administrative implementation of proposed tax credits is good public policy.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee concurs with the intent and purpose of S.R. No. 15 and recommends its adoption.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair