STAND. COM. REP. NO. 2254

Honolulu, Hawaii

RE:    S.B. No. 2101

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Health, to which was referred S.B. No. 2101 entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to make permanent the state general excise tax exemption for the amounts 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 for the administration of the TRICARE program.

     Your Committee received testimony in support of this measure from the Department of Taxation; Military Officers Association of America, Hawaii Chapter; Chamber of Commerce of Hawaii; TriWest Healthcare Alliance Inc.; and HMSA.

     Your Committee finds that this exemption will support the continued availability, accessibility, and strength of the TRICARE program for the many current and former military personnel as well as their families.

     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. 2101 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,

____________________________

JOSH GREEN, M.D., Chair