STAND. COM. REP. NO. 2845

Honolulu, Hawaii

RE: S.B. No. 3202

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 Ways and Means, to which was referred S.B. No. 3202 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 strengthen the healthcare workforce in the State.

More specifically, this measure:

(1) Amends the Healthcare Preceptor Tax Credit to improve accessibility and further promote the education of health care professionals by:

(A) Removing language limiting access to only those in primary care;

(B) Adding physician assistants, licensed dietitians, and social workers as eligible preceptors and students; and

(C) Expanding eligibility to residency and fellowship programs; and

(2) Revises 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 written comments in support of this measure from the University of Hawaii, Hawaii State Center for Nursing, Hawaii State Commission on the Status of Women, AlohaCare, Hawaii Academy of Physician Assistants, Hawaii Affiliate of the American College of Nurse-Midwives, Hawaii Medical Association, Hawaii Pacific Health, Hawaii Pharmacists Association, Hawaii Primary Care Association, Hawaii Public Health Institute, Healthcare Association of Hawaii, Hina Mauka, The Queen's Health Systems, and eight individuals.

Your Committee finds that there is a shortage of healthcare providers in the State, including primary care providers and specialty providers. Your Committee also finds that, although students are interested in pursuing careers in Hawaii's healthcare service industry, in-state educational institutions are constrained by the lack of clinical education sites in the State and the limited supply of expert clinicians who volunteer as qualified preceptors. Your Committee believes that expanding eligibility for the Healthcare Preceptor Tax Credit, established under section 235-110.25, Hawaii Revised Statutes, will help incentivize more volunteer preceptors to offer professional instruction, training, and supervision to students and residents seeking careers as healthcare providers in the State.

Your Committee has amended this measure by changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

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. 3202, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3202, S.D. 1.

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

________________________________

DONOVAN M. DELA CRUZ, Chair