STAND. COM. REP. NO. 364-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1591

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Health, to which was referred H.B. No. 1591 entitled:

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

begs leave to report as follows:

The purpose of this measure is to make various amendments related to the Healthcare Preceptor Tax Credit, including:

(1) Amending the definitions of "preceptor" and "volunteer-based supervised clinical training rotation" to improve accessibility for providers to receive income tax credits for acting as preceptors, including removing "primary care" from the criteria to qualify as a preceptor;

(2) Adding physician assistants and social workers to the list of preceptors and in the definition of "eligible student";

(3) Expanding eligibility for the tax credit to include accredited residency programs that require preceptor support; and

(4) Revising the membership of the Preceptor Credit Assurance Committee to include the Director of Health and representatives of residency programs with eligible students.

Your Committee received testimony in support of this measure from the Department of Health; University of Hawaiʻi System; Hawaiʻi State Center for Nursing; Hawaii Substance Abuse Coalition; Hina Mauka; Health Mothers Healthy Babies Coalition of Hawaii; The Queen's Health Systems; Hawaii Medical Association; Hawaiʻi Pacific Health; Healthcare Association of Hawaii; Hawaiʻi Psychological Association; Hawaiʻi-American Nurses Association; Hawaiʻi Association of Professional Nurses; Hawaiʻi Affiliate of the American College of Nurse-Midwives; Kaiser Permanent Hawaiʻi; Hawaiʻi Public Health Institute; Hawaii Primary Care Association; and four individuals. Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

Your Committee finds that the State is experiencing a shortage of health care providers across many fields of practice, including behavioral health, substance abuse, and primary care. Your Committee further finds that the Healthcare Preceptor Tax Credit is intended to incentivize volunteer preceptors to offer professional instruction, training, and supervision to students and residents seeking careers as health care providers. However, only a small subset of providers meet the tax credit's eligibility requirements each year. Additionally, some classes of health care providers are statutorily ineligible for the tax credit. This measure is intended to increase eligibility for the tax credit by clarifying compensation limits for volunteer-based supervised clinical training rotations and expanding the definition of "preceptor" to include additional medical specialties.

Your Committee has amended this measure by:

(1) Amending the definitions of "eligible student" and "preceptor" to include dietitian students and dietitians, respectively;

(2) Changing the effective date to July 1, 3000, to encourage further discussion; and

(3) 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 that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1591, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1591, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

GREGG TAKAYAMA, Chair