STAND. COM. REP. NO. 425-04

Honolulu, Hawaii

, 2004

RE: H.B. No. 2108

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committees on Human Services and Housing and Health, to which was referred H.B. No. 2108 entitled:

"A BILL FOR AN ACT RELATING TO LONG-TERM CARE,"

beg leave to report as follows:

The purpose of this bill is to provide long-term care benefits for qualified residents by:

(1) Establishing a long-term care income tax based on age;

(2) Exempting low-income individuals from the long-term care income tax;

(3) Providing benefits beginning at $70 per day for 365 days, and increasing incrementally thereafter; and

(3) Providing an age-based refundable tax credit for those who have purchased long-term care insurance.

Kokua Council and ILWU Local 142 supported the bill. The Department of Health, Chamber of Commerce of Hawaii, Hawaii Association of Realtors, NAIFA Hawaii, and State Farm opposed the bill. The Department of Taxation provided comments.

Your Committees find that there is a growing need for a mechanism to fund long-term care in our State. This bill would establish State funding for long-term care through a graduated income tax and incentive for the purchase of long-term care insurance through a tax credit.

Your Committees have amended this bill by:

(1) Replacing the age-based tax credit with an income-based tax credit; and

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

As affirmed by the records of votes of the members of your Committees on Human Services and Housing and Health that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2108, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2108, H.D. 1, and be referred to the Committee on Finance.

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

 

____________________________

DENNIS A. ARAKAKI, Chair

____________________________

MICHAEL PUAMAMO KAHIKINA, Chair