STAND. COM. REP. NO. 934-24

Honolulu, Hawaii

, 2024

RE: H.B. No. 1675

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 1675, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE GENERAL EXCISE TAX,"

begs leave to report as follows:

The purpose of this measure is to, beginning on January 1, 2026, exempt medical services provided by licensed physicians and advanced practice registered nurses acting in the capacity of primary care providers from the general excise tax.

Your Committee received testimony in support of this measure from the University of Hawaiʻi System; Disability and Communication Access Board; State Health Planning and Development Agency; Office of the Mayor of the County of Hawaiʻi; one member of the Maui County Council; Christopher West LMHC LLC; Hawaii Provider Shortage Crisis Task Force; Hawaii Independent Physicians Association; The American College of Obstetricians and Gynecologists – Hawaiʻi Section; Maui Orthopedic Institute; Grassroot Institute of Hawaii; East Hawaii Independent Physicians Association, dba Big Island Docs; ʻAhahui o nā Kauka; Hawaiʻi Association of Professional Nurses; Hawaii Institute for Pain; Philippine Medical Association of Hawaiʻi; Hawaii Association of Health Plans; Hawaii Academy of Family Physicians, Legislative Committee; Indivisible Hawaii Healthcare Team; Save Medicaid Hawaii; Oahu Kidney Care LLC; Joyful Living, LLC; Hawaii County Medical Society; West Hawaii Independent Physicians; and numerous individuals. Your Committee received comments on this measure from the Department of Taxation; Hawaii Dental Service; Tax Foundation of Hawaii; Hawaii Medical Association; Hawaiʻi Counselors Association; Pilgrim Behavioral LLC; and numerous individuals.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1675, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

KYLE T. YAMASHITA, Chair