STAND. COM. REP. NO. 444

Honolulu, Hawaii

, 2005

RE: S.B. No. 1237

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Health and Commerce, Consumer Protection, and Housing, to which was referred S.B. No. 1237 entitled:

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

beg leave to report as follows:

The purpose of this measure is to provide a tax credit to employers who provide health care coverage for their part-time employees at the lesser of fifty percent of premiums paid or a dollar amount per part-time employee.

Hawaii Medical Service Association submitted testimony in support of this measure. The Tax Foundation of Hawaii submitted comments.

Your Committees find that Hawaii's prepaid health care law does not require employers to provide health care coverage for their part-time employees. As a result, many workers who are not regular or full-time employees in one job but instead work a combined twenty hours or more at two or more part-time jobs are left without health care coverage. As the proponent noted, this measure strikes a fair balance between encouraging employers to do the right thing for their employees while not compelling them to do so.

Your Committees have amended this measure by making technical, non-substantive amendments for clarity and style.

As affirmed by the records of votes of the members of your Committees on Health and Commerce, Consumer Protection, and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1237, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1237, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Health and Commerce, Consumer Protection, and Housing,

____________________________

RON MENOR, Chair

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ROSALYN H. BAKER, Chair