Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 194
                                     S.D. 2
                                     H.D. 1

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


     Your Committee on Consumer Protection and Commerce, to which
was referred S.B. No. 194, S.D. 2, H.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this bill is to encourage the purchase of
long-term care (LTC) insurance by providing a State income tax
credit of up to 50 percent of the premium cost of a qualified LTC
policy, to a maximum of $1,000 per year.

     The Insurance Commissioner from the Department of Commerce
and Consumer Affairs, the American Council of Life Insurance, the
Hawaii State Association of Life Underwriters, AARP, Healthcare
Association of Hawaii, Benefit Services of Hawaii, Inc., the
Hawaii Coalition for Affordable Long Term Care, the Policy
Advisory Board for Elder Affairs, and the Hawaii State Commission
on the Status of Women.  The Department of Taxation supported the
intent of this measure and suggested an alternative for the
credit provisions of the bill.  The Tax Foundation of Hawaii
submitted comments on this bill.

     Your Committee notes that this bill is substantially similar
to H.B. No. 170 H.D. 1, which passed out of this Committee
earlier this session.
     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to

                                 STAND. COM. REP. NO. 1367
                                 Page 2

this report, your Committee is in accord with the intent and
purpose of S.B. No. 194, S.D. 2, H.D. 1, and recommends that it
be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Consumer
                                   Protection and Commerce,

                                   RON MENOR, Chair