STAND. COM. REP. NO. 3712

Honolulu, Hawaii

RE: H.B. No. 1591

H.D. 1

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committees on Commerce and Consumer Protection and Ways and Means, to which was referred H.B. No. 1591, H.D. 1, S.D. 1, entitled:

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

beg 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 Committees received testimony in support of this measure from the State Council on Mental Health, University of Hawaiʻi System, Hawaii State Commission on the Status of Women, Hawaiʻi Psychological Association, Hawaii Medical Association, Hawaii Substance Abuse Coalition, Healthcare Association of Hawaii, Hawaiʻi Academy of Physician Assistants, Hawaiʻi Public Health Institute, Hawaiʻi Pacific University, Hawaiʻi Pacific Health, Hawaiʻi Primary Care Association, Waianae Coast Comprehensive Health Center, The Queen's Health Systems, Hawaii Pharmacists Association, and four individuals.

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

Your Committees find that clinical preceptors are vital to the maintenance of robust education and experience for future physicians in the State, as well as recruitment when training is complete. This measure would help sustain and grow the State's health care workforce, including physicians, by supporting the essential educators who train future clinicians, which is critical for long-term patient access to high quality care and health outcomes.

Your Committees have amended this measure by:

(1) Inserting language to clarify that the expanded tax credit shall apply to taxable years beginning after December 31, 2026;

(2) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(3) Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Commerce and Consumer Protection and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1591, H.D. 1, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as H.B. No. 1591, H.D. 1, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Commerce and Consumer Protection and Ways and Means,

________________________________ DONOVAN M. DELA CRUZ, Chair

________________________________ JARRETT KEOHOKALOLE, Chair