STAND. COM. REP. NO. 2898

Honolulu, Hawaii

RE: S.B. No. 2298

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2298, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to increase the capacity to provide education to healthcare providers in the State.

More specifically, this measure establishes an income tax credit that encourages preceptors to offer professional instruction, training, and supervision to students and residents seeking careers as primary care physicians and advanced practice registered nurses throughout Hawaii.

Your Committee received written comments in support of this measure from the Mayor of the County of Hawaii; University of Hawaii System; University of Hawaii at Hilo Daniel K. Inouye College of Pharmacy; Hawaii State Center for Nursing; Hawaii Chapter of the American Physical Therapy Association; Hawaii Government Employees Association; Hawaii Medical Association; Hawaii Pacific Health; Hawaii Pharmacists Association; Hawaii Primary Care Association; OCC Legislative Priorities Committee, Democratic Party of Hawaii; Pharmacare Hawaii; Straub Medical Center; Waianae Coast Comprehensive Health Center; and seventy-three individuals.

Your Committee received written comments in opposition to this measure from one individual.

Your Committee received written comments on this measure from the Department of Taxation; Tax Foundation of Hawaii; and two individuals.

Your Committee finds that the shortage of primary care providers in the State will be worsened by the projected retirements of current physicians and advanced practice registered nurses. Your Committee further finds that, although Hawaii high school students and residents are interested in pursuing careers in the healthcare service industry, in-state educational institutions are constrained by the lack of clinical education sites in Hawaii and the limited supply of qualified primary and specialty care preceptors.

Your Committee has amended this measure by:

(1) Making pharmacists eligible to receive the tax credit;

(2) Requiring the preceptor credit assurance committee established in the measure to certify the amount of the tax credit;

(3) Clarifying the duties of the preceptor credit assurance committee;

(4) Requiring taxpayers claiming the tax credit to file a certificate from the preceptor credit assurance committee with their tax returns;

(5) Clarifying the order in which the preceptor credit assurance committee will certify credits; and

(6) Making technical nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2298, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2298, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair