Report Title:

Health Care; Loan Repayments; Stipends; Enterprise Zones

 

Description:

Establishes the Hawaii health corps task force to study the feasibility of loan repayment and stipend programs for physicians and dentists who agree to work in health professional shortage areas and as first responders during civil defense and other emergencies.  Research into the feasibility of expanding the enterprise zone business tax credit, general excise tax exemption, and other tax incentives to include physicians and dentists who establish or maintain practices in areas designated as enterprise zones.  Appropriates funds.  (SD1)

 


HOUSE OF REPRESENTATIVES

H.B. NO.

2519

TWENTY-FOURTH LEGISLATURE, 2008

H.D. 2

STATE OF HAWAII

S.D. 1

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO HEALTH CARE.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The legislature finds that many of the residents of Hawaii are increasingly unable to obtain timely and appropriate health care because of physician and dentist shortages.  These shortages primarily affect the rural areas of our state.  In the area of medical services, they are especially acute in disciplines such as family practice, obstetrics, gynecology, and orthopedics.

     Contributing to these shortages is the increasingly high cost of a physician’s professional education that requires physicians to seek out the higher incomes that allow them to repay their student loans.  However, physician salaries in rural shortage areas are often lower than those in non-shortage areas.

     The establishment of state programs, such as loan repayment programs, state funded physician and dentist stipend programs, health corps, and enterprise zones may be used to encourage and enable physicians and dentists to provide care in shortage areas.

     The preparation work for establishing a new division or office in state government to administer such activities is a multiple year project.  For example, the state’s department of health environmental loan programs took two to three years to start, in part, because of the time involved to ensure program compliance with federal and state laws and regulations, to analyze loan risks concerns, and procedures related loan defaults, as well as the time needed to determine loan contracts, program staffing requirements, and support functions.

     In order to ensure that the State is able to best serve Hawaii’s rural areas by encouraging physicians and dentists to provide care in shortage areas, it is essential that proper resource planning, analysis, and assessment take place first to ensure that these proposed programs meet applicable state and federal laws and has the appropriate staffing to administer the programs under the working title "Hawaii Health Corps."

     The purpose of this Act is to establish a Hawaii health corps task force to study the feasibility of loan repayment and stipend programs, to be administered by the department of health, and tax incentives for physicians and dentists who agree to work in health professional shortage areas of the State and as first responders during civil defense and other public health emergencies.

     SECTION 2.  (a)  There is established the Hawaii health corps task force within the department of health for administrative purposes.  The task force shall study the feasibility of a loan repayment program, a stipend program, and tax incentives for physicians and dentists who agree to work in health professional shortage areas of the State and as first responders during civil defense and other public health emergencies.

     (b)  The study shall include, but not limited to:

     (1)  A comprehensive review and analysis of applicable state and federal loan and stipend laws;

     (2)  The development of loan and stipend application procedures, policies, contracts, and regulations that meet state and federal laws;

     (3)  Policies, procedures, and penalties regarding loan and stipend repayment defaults;

     (4)  An estimation of the minimum funding needed to establish a loan and stipend programs and the ongoing funding needs that will be required in future years;

     (5)  An analysis of the average number of loan and stipend amounts and the estimated number of physicians and dentists who will benefit from the programs; and

     (6)  Research into the feasibility, costs, and procedures of expanding the enterprise zone tax credit, general excise tax exemption, and other tax incentives available to include physicians and dentists who establish or maintain practices in areas designated as enterprise zones and an estimation of the number of physicians and dentists who would benefit from tax incentive.

     (c)  The Hawaii health corps task force shall submit a report of its findings, recommendations, and any proposed legislation to the legislature twenty days prior to the convening of the regular session of 2009.

     (d)  The task force shall cease to exist upon the conclusion of its final report or June 1, 2010, whichever comes first.

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2008-2009 for the Hawaii health corps task force to conduct a feasibility study that effectuates the purposes of this Act.

     The sum appropriated shall be expended by the department of health for the purposes of this Act.

     SECTION 4.  This Act shall take effect upon approval.