STAND. COM. REP. NO. 3045
RE: S.B. No. 2542
Honorable Ronald D. Kouchi
President of the Senate
Thirtieth State Legislature
Regular Session of 2020
State of Hawaii
Your Committee on Ways and Means, to which was referred S.B. No. 2542, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO THE GENERAL EXCISE TAX EXEMPTIONS,"
begs leave to report as follows:
The purpose and intent of this measure is to address the shortage of physicians and advance practice registered nurses in the State.
More specifically, this measure exempts from the general excise tax all gross proceeds arising from the sale of medical services by physicians and advanced practice registered nurses acting in the capacity of a primary care provider.
Your Committee received written comments in support of this measure from the Mayor of the County of Hawaii; Hawaii State Rural Health Association; Hawaii Physician Shortage Crisis Task Force; Hawaii Radiologic Associates, Ltd.; American Academy of Pediatrics, Hawaii Chapter; Hawaii Institute of Pain; Hawaii - American Nurses Association; Hawaii Radiologic Society; Ear, Nose, & Throat Clinics of Oahu, LLC; McMann Eye Institute; Philippine Medical Association of Hawaii; Hawaii Emergency Physicians Associated; Hawaii Emergency Physicians Associated; Hawaii Medical Association; East Hawaii Independent Physicians Association; Hawaii Public Health Institute; Hawaii Society of Clinical Oncology; Hawaii Academy of Family Physicians; and numerous individuals.
Your Committee received comments on this measure from the Department of Taxation, Grassroot Institute of Hawaii, Lighthouse Healing LLC, and Tax Foundation of Hawaii.
Your Committee finds that exempting from the general excise tax all gross proceeds arising from the sale of medical services by physicians and advanced practice registered nurses acting in the capacity of a primary care provider will help to reduce the negative impact of the general excise tax on those physicians and advanced practice registered nurses.
Your Committee has amended this measure by:
(1) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and
(2) Making technical nonsubstantive amendments for purposes of clarity, consistency, and style.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2542, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2542, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
DONOVAN M. DELA CRUZ, Chair