STAND. COM. REP. NO. 307

Honolulu, Hawaii

RE:    S.B. No. 427

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Health, to which was referred S.B. No. 427 entitled:

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

begs leave to report as follows:

     The purpose of this measure is to support the continued availability and strength of the TriCare program by exempting from the general excise tax, amounts received by managed care support coordinators as reimbursements from the Department of Defense for advances made for the TriCare program.

     Your Committee received testimony in support of this measure from Hawaii Medical Service Association and TriWest Healthcare Alliance Inc.  Your Committee received comments on this measure from the Tax Foundation of Hawaii.

     Written testimony presented to the Committee may be reviewed on the Legislature's website.

     Your Committee finds that this measure will help to ensure that Hawaii Medical Service Association will be able to continue to provide medical insurance coverage to the approximately 150,000 current and former military personnel and their family members who reside in Hawaii.

     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 S.B. No. 427 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Health,

____________________________

DAVID Y. IGE, Chair