STAND. COM. REP. NO. 1044

Honolulu, Hawaii

RE: S.B. No. 606

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 606, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HEARING AIDS,"

begs leave to report as follows:

The purpose and intent of this measure is to make hearing aids more affordable.

More specifically, this measure exempts from the general excise tax, gross receipts received by a hospital, infirmary, medical clinic, health care facility, pharmacy, or a practitioner licensed to administer drugs to an individual, from the sale of hearing aids.

Your Committee received written comments in support of this measure from the Disability and Communication Access Board, Kupuna Caucus of the Democratic Party of Hawaii, and eight individuals.

Your Committee received written comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

Your Committee finds that hearing is an important sense upon which an individual depends for communication. Your Committee also finds that adding the general excise tax to the cost of hearing aids may preclude people who rely on these devices from being able to afford them.

Your Committee notes the Department of Taxation's request that the measure take effect on January 1, 2024, to allow sufficient time to make necessary form and system changes.

Your Committee has amended this measure by adding a sunset date of January 1, 2026.

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. 606, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 606, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair