STAND. COM. REP. NO. 158-04

Honolulu, Hawaii

, 2004

RE: H.B. No. 2710

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committees on Labor and Public Employment and Health, to which was referred H.B. No. 2710 entitled:

"A BILL FOR AN ACT RELATING TO HEALTH CARE INSURANCE TAX CREDIT,"

beg leave to report as follows:

The purpose of this bill is to address a portion of Hawaii's uninsured population consisting of part-time employees who are without health care coverage. This bill provides a tax credit to employers who provide health care coverage for workers employed less than twenty hours per week, including seasonal employees. The amount of the tax credit is equal to the lessor of:

(1) An unspecified dollar amount for each employee; or

(2) Fifty percent of any health care coverage insurance premium payments made for each part-time employee.

The tax credit is applicable to taxable years beginning after December 31, 2004.

The National Federation of Independent Business offered comments.

Hawaii's Prepaid Health Care Act does not require employers to provide health care coverage for their part-time employees. As a result, there are many workers without coverage, because, rather than being full-time employees, many work at more than one part-time job.

Your Committees recognize the need to come up with a more systemic solution to this problem. At the same time, this bill represents a "stop-gap" measure until such time that significant reform is enacted.

As affirmed by the records of votes of the members of your Committees on Labor and Public Employment and Health that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2710 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 Labor and Public Employment and Health,

 

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DENNIS A. ARAKAKI, Chair

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MARCUS R. OSHIRO, Chair