STAND. COM. REP. 281

Honolulu, Hawaii

, 2003

RE: H.B. No. 1344

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Health, to which was referred H.B. No. 1344 entitled:

"A BILL FOR AN ACT RELATING TO QUALIFIED IMPROVEMENT TAX CREDIT,"

begs leave to report as follows:

The purpose of this bill is to provide federally qualified health centers with a qualified improvement tax credit for capital improvements, including purchases of medical services and record-keeping equipment costing at least $50,000.

The Waianae Coast Comprehensive Health Center provided testimony in support of this bill. The Department of Taxation and Tax Foundation of Hawaii commented on the bill.

Your Committee finds that a new Medicaid prospective payment system that began on January 1, 2001, has effectively eliminated a mechanism for federally qualified health centers to recoup costs associated with their future capital improvements. The tax credit in this bill seeks to replace the support previously provided under federal law, by assisting these health centers to maintain and improve their facilities and to provide services to their "safety net" uninsured, poor, and indigent patients.

 

As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1344 and recommends that it pass Second Reading and be referred to the Committee on Finance.

 

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

 

____________________________

DENNIS A. ARAKAKI, Chair