STAND. COM. REP. NO. 93

Honolulu, Hawaii

, 2023

RE: H.B. No. 82

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Health & Homelessness, to which was referred H.B. No. 82 entitled:

"A BILL FOR AN ACT RELATING TO HEALTH CARE PRECEPTORS,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Clarify the limits of when a preceptor may be compensated for standard clinical services while providing a volunteer-based supervised clinical training rotation;

(2) Amend the definition of "preceptor" to include specialty providers who support the development and training of students in primary care; and

(3) Amend the membership of the Preceptor Credit Assurance Committee to include the Director of Health.

Your Committee received testimony in support of this measure from the Department of Health, University of Hawai‘i System, National Association of Social Workers - Hawai‘i, Hawai‘i Association of Professional Nurses, Hawaii Medical Association, Hawai‘i State Center for Nursing, Hawai‘i Primary Care Association, Hawaii Chapter of the American Physical Therapy Association, Kaiser Permanente Hawai‘i, Hawai‘i Pacific Health, The Queen's Health System, Hawai‘i Academy of Physician Assistants, and two individuals. Your Committee received comments on this measure from the Department of Health, Department of Taxation, and Tax Foundation of Hawaii.

Your Committee finds that there is a shortage of primary care providers in the State. Your Committee further finds that the healthcare preceptor income tax credit is intended to incentivize volunteer preceptors to offer professional instruction, training, and supervision to students and residents seeking careers as health care providers. However, only a small subset of providers met the credit's eligibility requirements. This measure is intended to increase eligibility for the credit by clarifying compensation limits for volunteer-based supervised clinical training rotations and expanding the definition of "preceptor" to include additional medical specialties.

Your Committee further finds that other classes of providers who support primary care are statutorily ineligible for the tax credit, such as dieticians, physician assistants, and social workers.

Accordingly, your Committee has amended this measure by:

(1) Replacing its contents with the contents of H.B. No. 1450, Regular Session of 2023, which is a substantially similar measure that includes dieticians, physician assistants, and social workers to the classes of professionals eligible for the tax credit;

(2) Changing the effective date to June 30, 3000, to encourage further discussion; and

(3) Making technical, nonsubstance amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Health & Homelessness that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 82, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 82, H.D. 1, and be referred to your Committee on Economic Development.

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

____________________________

DELLA AU BELATTI, Chair