STAND. COM. REP. NO.473-02

Honolulu, Hawaii

, 2002

RE: H.B. No. 2638

H.D. 2




Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii


Your Committee on Finance, to which was referred H.B. No. 2638, H.D. 1, entitled:


begs leave to report as follows:

The purpose of this bill is to provide an equitable and affordable system of long-term care in Hawaii by establishing the Hawaii Long-term Care Financing Program (Program).

Specifically, this bill would:

(1) Impose a mandatory long-term care income tax upon employees aged 25 to 98 and self-employed individuals in the amount of $10 per month beginning in 2004 with fixed annual increases in the amount of five percent per year through 2009;

(2) Establish the Hawaii Long-term Care Benefits Fund into which will be deposited the moneys collected as long-term care income taxes;

(3) Establish a blue ribbon panel to administer the Program; and

(4) Provide benefit payments for long-term care services for qualified individuals beginning July 1, 2008, of $70 per day up to a cumulative period of 365 days.

The Department of Human Services, Executive Office on Aging, Department of Commerce and Consumer Affairs, Hawaii State Commission on the Status of Women, Healthcare Association of Hawaii, Hawaii Long Term Care Association, Kokua Council, Hawaii Alliance for Retired Americans, American Association of Retired Persons, Policy Advisory Board for Elder Affairs, and many concerned individuals submitted testimony in support of this measure. The National Association of Social Workers, Hawaii Chapter, Hawaii Catholic Conference, Coalition for Affordable Long Term Care, and Hawaii Coalition of Care Home Administrators supported the intent of this measure.

The Department of Taxation, Chamber of Commerce of Hawaii, Hawaii Medical Association, Health Insurance Association of America, and several concerned individuals opposed this measure. The Office of Information Practices, Tax Foundation of Hawaii, NAIFA Hawaii, and a concerned individual submitted comments.

Your Committee has amended this bill by:

(1) Changing the effective date for the Program and appropriation to July 1, 2050, to facilitate further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2638, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2638, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,