STAND. COM. REP. NO. 149

Honolulu, Hawaii

RE: S.B. No. 1070

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Health and Human Services, to which was referred S.B. No. 1070 entitled:

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

begs leave to report as follows:

The purpose and intent 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 dieticians, physician assistants, and social workers to the list of preceptors and eligible students;

(3) Expand eligibility for the Healthcare Preceptor Tax Credit to include accredited residency programs that require preceptor support; and

(4) Add the Director of Health and representation of 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; University of Hawaiʻi System; Hawaii Pharmacists Association; Hawaii Medical Association; The Queen's Health Systems; Hawai‘i Pacific Health; Kaiser Permanente Hawai‘i; The Kahala Clinic for Children & Family Inc.; Hawai‘i Primary Care Association; Hawaiʻi Academy of Physician Assistants; Healthcare Association of Hawaii; Hawaiʻi State Center for Nursing; Philippine Medical Association of Hawaiʻi; Pacific Vascular; and twelve individuals.

Your Committee received comments on this measure from the Department of Taxation, Tax Foundation of Hawaii, Hawaiʻi Affiliate of the American College of Nurses-Midwives, and one individual.

Your Committee finds that although students are interested in pursuing careers in Hawaii's health care service industry, in-state educational institutions are constrained by the lack of clinical education sites in the State and the limited supply of qualified preceptors. Your Committee further finds that the purpose of the existing Healthcare Preceptor Income Tax Credit is to incentivize volunteer preceptors to offer professional instruction, training, and supervision to students and residents seeking careers as health care providers in the State. This measure makes modifications to the existing Healthcare Preceptor Income Tax Credit program to amplify the success of the program.

Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Health and Human Services that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1070, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1070, S.D. 1, and be referred to your Committees on Commerce and Consumer Protection and Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Health and Human Services,

________________________________

JOY A. SAN BUENAVENTURA, Chair