STAND. COM. REP. NO. 122

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 170
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committees on Human Services and Housing and Health, to
which was referred H.B. No. 170 entitled: 

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

beg leave to report as follows:

     The purpose of this bill is to adopt the federal deduction
for long-term care expenses.  

     Your Committees received testimony in support of this
measure from representatives of the Department of Taxation, the
Department of Commerce and Consumer Affairs, the Executive Office
on Aging, the Hawaii State Association of Life Underwriters,
State Farm Insurance Companies, the American Council of Life
Insurance, the Hawaii Medical Service Association, the Hawaii
Long Term Care Association and the Policy Advisory Board for
Elder Affairs. 

     Your Committees find that this measure will provide relief
to those unfortunate taxpayers burdened with expensive medical
bills for themselves and their dependants for long-term health
care expenses.  The measure will also simplify the tax system by
bringing this aspect of the Hawaii tax code into conformity with
the Internal Revenue Code.


 
 
 
 
 
 
                                 STAND. COM. REP. NO. 122
                                 Page 2

 
     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. 170 and recommend that it pass
Second Reading and be referred to the Committee on Consumer
Protection and Commerce.

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

                                   
                                   
                                   
                                   
______________________________     ______________________________
ALEXANDER SANTIAGO, Chair          DENNIS ARAKAKI, Chair