STAND. COM. REP. NO. 2420

Honolulu, Hawaii

RE: S.B. No. 2848

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 S.B. No. 2848 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 exempt from the general excise tax, gross receipts from the sale of hearing aids received by a hospital, infirmary, medical clinic, health care facility, pharmacy, or a practitioner licensed to administer drugs to an individual.

Your Committee received testimony in support of this measure from the Disability and Communication Access Board and five individuals.

Your Committee received comments on this measure from the Department of the Attorney General and Department of Taxation.

Your Committee finds that hearing aids are a vital auxiliary device for people who are deaf or hard of hearing and can facilitate effective communication. Your Committee further finds that hearing aids can range from a few hundred dollars to thousands of dollars for one year, and if a person needs two hearing aids, the cost can present a barrier for those with limited income. By providing general excise tax relief for the sale of hearing aids, this measure promotes access to medically necessary care, improves quality of life, and supports full participation in employment, education, and community life for individuals who are deaf or hard of hearing.

Your Committee has amended this measure by:

(1) Deleting language that would have updated reference to the "food stamp program" in section 237-24.3(5), Hawaii Revised Statutes, to "supplemental nutrition assistance program" for consistency with current federal terminology, to ensure compliance with the one-subject requirement under article III, section 14, of the Hawaii State Constitution;

(2) Inserting an implementation date of January 1, 2027, to provide sufficient time for form and instruction changes and notice to taxpayers;

(3) Deleting language that would have repealed this measure on January 1, 2028; and

(4) Inserting an effective date of January 30, 2050, to encourage further discussion;

(5) 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 S.B. No. 2848, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2848, S.D. 1, and be referred to your Committees on Ways and Means and Commerce and Consumer Protection.

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

________________________________

JOY A. SAN BUENAVENTURA, Chair