STAND. COM. REP. NO.  1251-12

Honolulu, Hawaii

                , 2012

RE:   S.B. No. 2101

      S.D. 1

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Public Safety & Military Affairs, to which was referred S.B. No. 2101, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE TRICARE PROGRAM,"

begs leave to report as follows:

The purpose of this measure is to make permanent the general excise tax exemption on funds received by a managed care support contractor of the TRICARE program for the actual cost or advancement to third-party health care providers pursuant to a contract with the United States.

The Department of Taxation; TriWest Healthcare Alliance, Inc.; the Hawaii Medical Service Association; and the Chamber of Commerce of Hawaii supported this measure.  The Tax Foundation of Hawaii commented on this measure.

     As affirmed by the record of votes of the members of your Committee on Public Safety & Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2101, S.D. 1, H.D. 1, and recommends that it be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Public Safety & Military Affairs,

____________________________

HENRY J.C. AQUINO, Chair