STAND. COM. REP. NO. 1804-24

Honolulu, Hawaii

, 2024

RE: S.B. No. 1035

S.D. 2

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 S.B. No. 1035, S.D. 2, 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 exempt from the general excise tax amounts received by health care providers for health care related goods and medical and dental services provided to Medicaid, Medicare, and TRICARE patients.

Your Committee received testimony in support of this measure from the State Health Planning and Development Agency; University of Hawaiʻi System; Mayor of the County of Hawaiʻi; two members of the Hawaiʻi County Council; one member of the Maui County Council; ʻAhahui o nā Kauka; Hawaii Institute for Pain; Hawaii Medical Association; Hawaiʻi Family Caregiver Coalition; Maui Orthopedic Institute; Hawaii Substance Abuse Coalition; Joyful Living, LLC; East Hawaii Independent Physicians Association, dba Big Island Docs; Aloha Gastroenterology, LLC; Hawaii Association of Health Plans; Philippine Medical Association of Hawaiʻi; Ear, Nose, & Throat Clinics of Oahu; Maui Plastic Surgery; AARP Hawaiʻi; Phoenix Center Inc.; Community First Hawaii; Hawaiʻi Island Chamber of Commerce; Grassroot Institute of Hawaii; We Are One, Inc.; Oahu Pediatric Dentistry; AlohaCare; Pacific Anesthesia; Kenny R. Malott M.D., Inc.; Healing Tides Primary Care; Free Access Coalition; Island Pediatrics of Honolulu; Hawaii Dental Service; Optimum Health and Wellness Hawaii; Hawaii Provider Shortage Crisis Task Force; American Board of Wound Management; Maui Urology, LLC; Hawaii Dental Hui; Hugo Higa M.D., LLC; Jarrett Surgery LLC; Maui Lani Physicians and Surgeons; Kohala Coast Urgent Care, LLC; Molokai Family and Urgent Care Clinic; Pearl City Medical Associates, Inc.; Ann S. Harada M.D., LLC; Hawaii Medical Association; Hawaii Ophthalmology Society; Ranjini Kandasamy, M.D.; John M. Nagamine, M.D.; Pearl City Medical Associates; Oahu Kidney Care LLC; Kim Nguyen, M.D., P.C.; and numerous individuals. Your Committee received comments on this measure from the Department of Taxation; Hawaiʻi Association of Professional Nurses; and Tax Foundation of Hawaii.

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 S.B. No. 1035, S.D. 2, 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