STAND. COM. REP. NO. 501

Honolulu, Hawaii

, 2025

RE: H.B. No. 303

H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Economic Development & Technology, to which was referred H.B. No. 303, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HEALTHCARE PRECEPTORS,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Expand the definitions of "preceptor" and "volunteer‑based supervised clinical training rotation" to improve accessibility for providers to receive income tax credits for acting as preceptors, including removing "primary care" from the criteria to qualify as a preceptor;

(2) Add dietitians, physician assistants, and social workers to the list of preceptors and eligible students;

(3) Expand eligibility for the tax credit to include accredited residency programs that require preceptor support; and

(4) Add the Director of Health and residency programs with eligible students to the Preceptor Credit Assurance Committee.

Your Committee received testimony in support of this measure from the Department of Health; Hawaii Health Systems Corporation Corporate Board of Directors; University of Hawaiʻi System; John A. Burns School of Medicine; University of Hawaiʻi School of Nursing and Dental Hygiene; Thompson School of Social Work and Public Health; University of Hawaiʻi Hilo Daniel K. Inouye College of Pharmacy and School of Nursing; Hawaiʻi State Center for Nursing; Healthcare Association of Hawaii; Hawaiʻi Primary Care Association; Hawaiʻi Affiliate of the American College of Nurse-Midwives; Hawaiʻi Pacific Health; Hawaii State Chiropractic Association; Hawaiʻi Academy of Physician Assistants; The Queen's Health Systems; Hawaii Pharmacists Association; Hawaiʻi Association of Professional Nurses; and four individuals. Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

Your Committee finds that the Healthcare Preceptor Income Tax Credit is intended to incentivize volunteer preceptors to offer instruction, training, and supervision to students and residents. Your Committee further finds that eligibility for the tax credit is restrictive, with many classes of health care providers excluded. This measure addresses this issue by expanding eligibility for the tax credit.

Your Committee has amended this measure by 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 Economic Development & Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 303, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.B. No. 303, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Technology,

____________________________

GREGGOR ILAGAN, Chair