STAND. COM. REP. NO. 510-22

Honolulu, Hawaii

, 2022

RE: H.B. No. 1556

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Health, Human Services, & Homelessness, to which was referred H.B. No. 1556 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to establish a refundable blood donation income tax credit to promote blood donations throughout the State.

Your Committee received testimony in support of this measure from The Queen's Health Systems and Blood Bank of Hawaii. Your Committee received comments on this measure from the Department of Taxation, Department of Budget and Finance, and Tax Foundation of Hawaii.

Your Committee finds that the State is experiencing a historic blood supply shortage. Your Committee further finds that because of this shortage, the Blood Bank of Hawaii, the sole provider of blood to eighteen civilian hospitals in the State and one on Guam, has been forced to undersupply the State's hospitals, leaving them with between sixty and eight percent of their normal blood supply. This measure addresses the ongoing health crisis by incentivizing blood donations through the creation of a refundable blood donation income tax credit.

Your Committee has amended this measure by:

(1) Deleting the preamble, other than the narrow purpose statement of this measure;

(2) Making the tax credit applicable to taxable years beginning after December 31, 2022;

(3) Changing the effective date to July 1, 2060, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Health, Human Services, & Homelessness that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1556, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1556, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Health, Human Services, & Homelessness,

____________________________

RYAN I. YAMANE, Chair