Honolulu, Hawaii


RE: S.B. No. 31

S.D. 2




Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii




Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 31, S.D. 1, entitled:




begs leave to report as follows:


The purpose and intent of this measure is to:


(1) Revise the definition of "primary care providers" and "volunteer based supervised clinical training rotation" to improve accessibility for providers to receive income tax credits for acting as preceptors; and


(2) Add the Director of Health and Director of Taxation to the preceptor credit assurance committee.


Your Committee received testimony in support of this measure from the Department of Health; Department of Taxation; University of Hawaii System; Hawaii State Rural Health Association; Hawaii State Center for Nursing; Hawaii American Nurses Association; Hawaii Primary Care Association; The Queen's Health Systems; National Association of Social Workers, Hawaii Chapter; and eleven individuals. Your Committee received comments on this measure from the Tax Foundation of Hawaii.


Your Committee finds that there is a shortage of primary care providers in the State, which will be exacerbated by the projected retirements of current physicians, advanced practice registered nurses, and pharmacists. Although students are interested in pursuing careers in the health care service industry in Hawaii, in-state educational institutions are constrained by the lack of clinical education sites in Hawaii and the limited supply of qualified primary care preceptors. This measure encourages participation of preceptors by offering a tax credit for professionals who serve as preceptors.


Your Committee has amended this measure by:


(1) Clarifying the qualifications of a preceptor under the definition of "volunteer-based supervised clinical training rotation" to include being uncompensated for providing clinical training above or beyond clinical salary or reimbursements or from state general funds or tuition funds;


(2) Removing the Director of Taxation, or the Director's designee, from the Preceptor Credit Assurance Committee; and


(3) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.


As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 31, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 31, S.D. 2, and be referred to your Committee on Ways and Means.


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