STAND. COM. REP. NO.  147

Honolulu, Hawaii

                , 2009

RE:   H.B. No. 1567

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committees on Human Services and Health, to which was referred H.B. No. 1567 entitled:

"A BILL FOR AN ACT RELATING TO SKILLED NURSING FACILITIES,"

beg leave to report as follows:

     The purpose of this measure is to create tax incentives for the development of skilled nursing facilities.

     The measure accomplishes this purpose by amending the state enterprise zone law by:

     (1)  Effective January 1, 2010, treating each new skilled nursing facility or facility expanding its operations outside an enterprise zone as operating within an enterprise zone for purposes of eligibility to receive all benefits provided to businesses in enterprise zones;

     (2)  Adding a definition of a "skilled nursing facility"; and

     (3)  Amending the definition of "medical and health care services".

     Testimony in opposition to this measure was submitted by the Department of Business, Economic Development, and Tourism.

     Testimony in support of this measure was submitted by Avalon Health, Inc.

     Your Committee finds that there is great unmet need for skilled nursing facilities.  This measure would provide much needed incentives for the development of new skilled nursing facilities and the expansion of existing operations, benefitting the health, safety, and welfare of the people of the State.

     As affirmed by the records of votes of the members of your Committees on Human Services and Health that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1567 and recommend that it pass Second Reading and be referred to the Committee on Economic Revitalization, Business, & Military Affairs.

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

____________________________ RYAN I. YAMANE, Chair

____________________________ JOHN M. MIZUNO, Chair