Report Title:

Health Care Access; Health Enterprise Zones

 

Description:

Establishes Health Enterprise Zones in the state to provide incentives for health care providers to serve in health professional shortage areas of the state.  (HB1996 HD1)

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1996

TWENTY-FOURTH LEGISLATURE, 2008

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO HEALTH CARE.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

Chapter

Health enterprise zoneS

§    -1  Definitions.  As used in this chapter, unless the context otherwise requires:

     "Department" means the department of health.

     "Director" means the director of health.

     "Health enterprise zone" means an area designated by the director as underserved by primary health care providers.

     "Loan program" means the health enterprise zone loan program.

     "Primary health care provider" means a:

(1)  Physician licensed under chapter 453 or an advanced practice registered nurse licensed under chapter 457 providing medical primary care; or

(2)  Dentist licensed under chapter 448 providing dental primary care,

as determined by the director.

     "Qualified practice" means a practice at which fifty per cent or more of the total amount received for services at that practice for the taxable year are qualified receipts and fifty per cent or more of the patients whose services are compensated by qualified receipts reside in a health enterprise zone.

     "Qualified primary health care provider" means a primary health care provider with a practice located in a health enterprise zone or a qualified practice that is located within five miles of a health enterprise zone.

     "Qualified receipts" means amounts received for services from the Medicaid program.

     §    -2  Powers and duties of the director.  The director shall:

     (1)  Establish criteria for determining what areas qualify as health enterprise zones;

     (2)  Administer this chapter in such a manner that each area to be designated as a health enterprise zone will most benefit the area and the state;

     (3)  Conduct a continuing evaluation of health enterprise zones;

     (4)  Prescribe the qualifications for eligibility of applicants for loans under the loan program;

     (5)  Establish preferences and priorities in determining eligibility for loans under the loan program;

     (6)  Establish the conditions, consistent with the purposes of this chapter, for the granting or for the continuance of a grant of a loan under the loan program;

     (7)  Provide for inspection, at reasonable hours, of the facilities, books, and records of a health care provider which has applied for or has been granted a loan;

     (8)  Monitor the implementation and operation of this chapter;

     (9)  Submit annual reports evaluating the effectiveness of the health enterprise zones law, and any recommendations and draft legislation to the governor and the legislature;

    (10)  Adopt, administer, and enforce rules to implement this chapter; and

    (11)  Perform all other functions necessary to effectuate the purposes of this chapter.

     §    -3  Health enterprise zone loan program.  (a)  There is created a health enterprise zone loan program which shall be administered by the director.

     (b)  In consultation with the director of health, the director of the department of business, economic development, and tourism shall establish and administer a program to make low interest loans available to primary care providers to:

(1)  Construct and renovate medical and dental offices or health clinics located in a health enterprise zone or within five miles of a health enterprise zone; and

(2)  Purchase medical equipment for use by primary care providers at practices located in health enterprise zones or at qualified practices that are located within five miles of a health enterprise zone.

     §    -4  Primary health care provider tax deduction.  Qualified primary health care providers shall receive a deduction from gross income in a taxable year equal to that portion of the taxpayer's net income deriving from the taxpayer's practice for the taxable year that the qualified receipts of that practice for the taxable year bear to the total amount received for services at that practice for the taxable year, as provided in section 235-    .

     §    -5  Government assistance; prohibition.  Tax incentives under this chapter shall not duplicate existing state tax incentives for qualified primary health care providers.

     §    -6  Health enterprise zone loan program revolving fund.  There is established the health enterprise zone loan program revolving fund into which shall be deposited:

(1)  Legislative appropriations;

(2)  Interest earned on any moneys in or investments of moneys from the fund;

(3)  All moneys received as repayment of loans and interest payments under the loan program; and

(4)  All other moneys distributed or transferred to the fund from any source.

The department may make loans from the fund in accordance with this chapter, and use a portion of the moneys contained in the fund to administer the loan program.

     §    -7  Rules.  Rules implementing this chapter shall be adopted by the department pursuant to chapter 91, and where appropriate, in consultation with the department of taxation."

     SECTION 2.  Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§235-     Health enterprise zone receipts excluded from adjusted gross income, and taxable income.  (a)  In addition to the exclusions in section 235-7, there shall be excluded from gross income, adjusted gross income, and taxable income, qualified receipts derived from a qualified primary health care provider's qualified practice for the taxable year.

     (b)  As used in this section:

     "Health enterprise zone" means an area designated by the director of health as an area that is underserved by primary health care providers.

     "Primary health care provider" means:

(1)  A physician licensed under chapter 453;

(2)  An advanced practice registered nurse licensed under chapter 457 providing medical primary care; or

(3)  A dentist licensed under chapter 448 providing dental primary care.

     "Qualified practice" means a practice at which fifty per cent or more of the total amount received for services at that practice for the taxable year are qualified receipts and fifty per cent or more of the patients whose services are compensated by qualified receipts reside in a health enterprise zone.

     "Qualified primary health care provider" means a primary health care provider with a qualified practice located in a health enterprise zone or within five miles of a health enterprise zone.

     "Qualified receipts" means amounts received for services from the Medicaid program."

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $1,000,000 or so much thereof as may be necessary for fiscal year 2008-2009 to be deposited into the health enterprise zone loan program revolving fund.

     SECTION 4.  There is appropriated out of the health enterprise zone loan program revolving fund the sum of $1,000,000 or so much thereof as may be necessary for fiscal year 2008-2009 to provide low-interest loans to construct and renovate medical and dental offices and health clinics and purchase medical equipment used by primary health care providers serving residents of health enterprise zones within the state, and administer the health enterprise zone loan program.

     The sum appropriated shall be expended by the department of health for the purposes of this Act.

     SECTION 5.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on January 1, 2050.