Honolulu, Hawaii



RE:     S.B. No. 31

        S.D. 3




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. 31, S.D. 2, entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to expand access to, and clarify eligibility for, the healthcare preceptor tax credit established by section 235-110.25, Hawaii Revised Statutes, and thus increase the number of healthcare providers serving as volunteer preceptors who train and prepare students for careers in the healthcare industry.


More specifically, this measure:


(1)  Amends the definition of "preceptor" by repealing the requirement that a preceptor maintain a "professional primary care practice" and instead requiring the preceptor to maintain a "professional practice" and to have a specialty that supports the development and training of an eligible student in primary care;


(2)  Amends the definition of "volunteer-based supervised clinical training rotation" to specify that while a preceptor may be compensated for providing standard clinical services, the preceptor shall not be compensated for clinical training provided under certain circumstances or compensated from state funds or tuition funds for clinical training services provided; and


(3)  Revises the membership of the Preceptor Credit Assurance Committee to include the Director of Health.


     Your Committee received written comments in support of this measure from the Department of Health, Department of Taxation, Hawaii State Center for Nursing, Hawaii Primary Care Association, The Queen's Health Systems, Hawaii Pacific Health, University of Hawaii, Hawaii-American Nurses Association, Hawaii State Rural Health Association, and six individuals.


     The Tax Foundation of Hawaii submitted written comments on this measure.


     Your Committee finds that expanding access to the healthcare preceptor tax credit will help to address the State's shortage of healthcare providers by incentivizing additional persons to offer professional instruction, training, and supervision to students and residents seeking careers as healthcare providers.


     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 changes 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. 31, S.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 31, S.D. 3.


Respectfully submitted on behalf of the members of the Committee on Ways and Means,