STAND. COM. REP. NO. 3336

Honolulu, Hawaii

RE: H.B. No. 1591

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Health and Human Services, to which was referred H.B. No. 1591, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Expand the definitions of "preceptor" and "volunteer‑based supervised clinical training rotation" applicable to the Healthcare Preceptor Tax Credit 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) Add physician assistants, dietitians, and social workers to the list of preceptors and eligible students;

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

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

Your Committee received testimony in support of this measure from the Department of Health, Board of Nursing, Hawaii State Council on Mental Health, University of Hawaiʻi System, State Commission on the Status of Women, Hawaiʻi State Center for Nursing, Hawaiʻi Public Health Institute, Hawaiʻi Academy of Physician Assistants, Healthcare Association of Hawaii, Kaiser Permanente Hawaiʻi, Hawaiʻi-American Nurses Association, Hawaii Substance Abuse Coalition, Hawaii Medical Association, Hina Mauka, Hawaiʻi Primary Care Association, Hawaiʻi Psychological Association, The Queen's Health Systems, Hawaiʻi Pacific Health, Hawaii Pharmacists Association, Waianae Coast Comprehensive Health Center, Healthy Mothers Healthy Babies Coalition of Hawaii, and ten individuals.

Your Committee received comments on this measure from the Department of Taxation, Tax Foundation of Hawaii, and Hawaiʻi Affiliate of the American College of Nurse-Midwives.

Your Committee finds that the purpose of the existing Healthcare Preceptor Tax Credit is to incentivize volunteer preceptors to offer professional instruction, training, and supervision to students and residents seeking careers as health care providers in the State. Your Committee further finds that the Healthcare Preceptor Tax Credit program has been successful in facilitating the growth of the preceptor program, and modifications to the existing program can amplify its success, especially through expanding eligibility to qualify as a preceptor. Your Committee notes that the existing budget for the Healthcare Preceptor Tax Credit is not fully utilized and that the State may be able to support additional health care preceptors in claiming the credit without requiring additional appropriations. This measure strengthens the clinical training pipeline that is essential to maintaining and growing the State's health care workforce.

Your Committee has amended this measure by:

(1) Inserting an effective date of January 1, 2027; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Health and Human Services that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1591, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1591, H.D. 1, S.D. 1, and be referred to your Committees on Commerce and Consumer Protection and Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Health and Human Services,

________________________________

JOY A. SAN BUENAVENTURA, Chair