STAND. COM. REP. NO. 669

Honolulu, Hawaii

, 2023

RE: H.B. No. 82

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Economic Development, to which was referred H.B. No. 82, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HEALTH CARE PRECEPTORS,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Improve accessibility for providers to receive income tax credits for acting as preceptors;

(2) Add licensed dietitians, physician assistants, and social worker to the list of preceptors; provided that any recognized preceptor may train any eligible student to become eligible for the preceptor tax credit;

(3) Include dietitian, physician assistant, and social worker students in the definition of "eligible student"; and

(4) Revise the membership of the Preceptor Credit Assurance Committee to include the Director of Health.

Your Committee received testimony in support of this measure from the Department of Health, University of Hawai‘i System, Hawai‘i State Center for Nursing, Kaiser Permanente Hawai‘i, Hawai‘i Pacific Health, Hawaii Medical Association, Hawai‘i Primary Care Association, Hawai‘i Pacific University Physician Assistant Program, Hawai‘i Academy of Physician Assistants, Hawai‘i – American Nurses Association, National Association of Social Workers – Hawai‘i, Hawai‘i Association of Professional Nurses, and four individuals. Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

Your Committee finds that there is a persistent shortage of health care providers in the State, particularly primary care providers. Your Committee further finds that the health care preceptor income tax credit incentivizes volunteer preceptors to offer professional instruction, training, and supervision to students and residents seeking careers as health care providers in Hawaii. Your Committee further finds that through the existing preceptor tax credit, many providers have trained eligible students, but only a small subset of providers met the tax credit's eligibility requirements because of ambiguity regarding the requirement for uncompensated precepting and the primary care qualifying criterion for the preceptor. This measure increases eligibility for the tax credit by expanding the definition of "preceptor" to include additional medical specialties and increase the pool of potential preceptors to support the development and training of students in primary care.

As affirmed by the record of votes of the members of your Committee on Economic Development that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 82, H.D. 1, and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Development,

____________________________

DANIEL HOLT, Chair