STAND. COM. REP. NO. 1980-18

Honolulu, Hawaii

, 2018

RE: S.B. No. 2298

S.D. 2

H.D. 3

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 2298, S.D. 2, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO HEALTHCARE PRECEPTOR TAX CREDITS,"

begs leave to report as follows:

The purpose of this measure is to incentivize volunteer preceptors who offer professional instruction, training, and supervision to students and residents seeking careers as healthcare providers by:

(1) Providing a tax credit to volunteer preceptors; and

(2) Establishing a Preceptor Credit Assurance Committee to develop and implement the allocation and distribution of certifications for the tax credit.

The University of Hawaii System, Board of Nursing, Daniel K. Inouye College of Pharmacy at the University of Hawaii at Hilo, Board of Pharmacy, American Nurses Association in Hawaii, Waianae Coast Comprehensive Health Center, Straub Medical Center, Hawaii Pacific Health, Hawaii Chapter of the American Physical Therapy Association, Hawaii Medical Association, Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO, Kapiolani Community College Physical Therapist Assistant Program, and numerous concerned individuals supported this measure. The Office of Information Practices, Department of Health, Department of Taxation, Board of Psychology, Hawaii State Center for Nursing, Hawaii Primary Care Association, Tax Foundation of Hawaii, and three individuals provided comments.

Your Committee has amended this measure by:

(1) Changing the maximum amount of the tax credit that a taxpayer may claim for each rotation from $1,000 to an unspecified amount;

(2) Changing the maximum amount of the tax credit that a taxpayer may claim for a taxable year from $5,000 to an unspecified amount;

(3) Changing the maximum amount of tax credits that the Preceptor Credit Assurance Committee may certify in a taxable year from $2,000,000 to an unspecified amount;

(4) Amending the composition of the Preceptor Credit Assurance Committee; and

(5) Making technical, nonsubstantive amendments for clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2298, S.D. 2, H.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2298, S.D. 2, H.D. 3.

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

____________________________

SYLVIA LUKE, Chair