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HB1591
HOUSE OF REPRESENTATIVES
H.B. NO.
1591
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII
A BILL FOR AN ACT
relating
to health care
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
����
SECTION 1.
�
The legislature finds that
there is a shortage of health care providers in the State,
particularly primary care providers, which will be exacerbated by the projected
retirement of current physicians, advanced practice registered nurses,
pharmacists, and other health care workers.
�
Although students are interested in pursuing careers in Hawaii's
health care service industry, in-state educational institutions are constrained
by the lack of clinical education sites in the State and the limited supply of
qualified preceptors.
�
One way to
encourage the participation of preceptors is to offer an income tax credit for
health care professionals who serve as preceptors.
����
The purpose
of the existing healthcare preceptor income 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.
�
The legislature finds
that although many providers have trained eligible students, modifications to the
existing program will amplify the success of the program.
����
The legislature further finds that
the preceptor tax credit program has been successful in facilitating the growth
of the preceptor program.
�
The five-year
evaluation of the program found a seventy-seven per cent increase in active
preceptors who taught at least one rotation, and seventy-six providers started
precepting during this five-year period.
�
The evaluation also recommended that to improve the function of the
program,
additional health care provider professions
that
have established schools in Hawaii should be added to the tax credit
eligibility, the primary care specialty requirement for preceptors should be
removed, and the requirement that the preceptor credit should be only for
precepting students enrolled in a primary care program should be removed.
����
The legislature
recognizes that programs training physicians, advanced
practice registered nurses, and pharmacists in primary care also require
training from specialty preceptors.
�
The
legislature further recognizes
that the health care
workforce has shortages in professions beyond those included in the tax credit and
whose workforce expansion is also limited by available preceptors, including
social workers and physician assistants, as well as workers in high-demand
specialties such as behavioral health.
�
As
such, the healthcare preceptor tax credit should not be limited to physicians,
advanced practice registered nurses, and pharmacists and should be expanded to
be applied across all eligible professions.
�
Finally, the legislature finds that the definition of
"volunteer-based supervised clinical training rotation" should be
clarified to facilitate the preceptor credit assurance committee's
implementation of the tax credit.
����
Accordingly,
the purpose of this Act is to:
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(1)
�
Amend 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)
�
Add physician
assistants and social workers to the list of preceptors and in the definition
of "eligible student";
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(3)
�
Expand eligibility
for the tax credit to include accredited residency programs that require
preceptor support; and
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(4)
�
Revise the
membership of the preceptor credit assurance committee to include the director
of health and representatives of residency programs with eligible students.
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SECTION
2
.
�
Section
235-110.25, Hawaii Revised Statutes, is amended by amending subsection (g) to
read as follows:
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"
(g)
�
For the purposes of this section:
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"Academic program" means
an academic degree granting program or graduate medical education program that:
����
(1)
�
Holds either its
principal accreditation or a physical location in Hawaii; and
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(2)
�
Provides education
to students, of whom more than fifty per cent are residents of Hawaii.
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"Advanced practice registered
nurse student" means an individual participating in a nationally
accredited academic program that is for the education of advanced practice
registered nurses and recognized by the state board of nursing pursuant to
chapter 457.
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"Eligible professional degree
or training certificate" means a degree or certificate that fulfills a
requirement to be a physician [
or
]
,
osteopathic physician,
or
physician assistant
pursuant to chapter 453[
,
]
;
an advanced
practice registered nurse[
,
] pursuant to chapter 457[
, or
]
;
a pharmacist[
,
] pursuant to chapter 461[
.
]
; or a social worker
pursuant to chapter 467E.
����
"Eligible student" means
an advanced practice registered nurse student, medical student,[
or
]
pharmacy student
, physician assistant student, or social work student or
resident
who is enrolled in an
eligible
academic program[
.
]
,
residency program, or fellowship.
����
"Medical student" means an
individual participating in a nationally accredited academic program leading to
the medical doctor or doctor of osteopathy degree.
�
"Medical student" includes
graduates from nationally accredited academic programs who have continued their
training, in the role of resident or fellow, to obtain the additional
qualifications needed for medical licensure, pursuant to chapter 453, or
specialty certification.
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"Nationally accredited"
means holding an institutional accreditation by name to offer post-secondary
medical [
primary care
] education.
�
Accreditation for medical students shall be offered by the Liaison
Committee on Medical Education [
or
]
,
American Osteopathic
Association Commission on Osteopathic College Accreditation[
.
]
, or
any other accreditation body recognized by the preceptor credit assurance
committee.
�
Accreditation for
advanced practice registered nurse students shall be offered by the Commission
on Collegiate Nursing Education[
.
]
or any other accreditation body
recognized by the preceptor credit assurance committee.
�
Accreditation for nursing residency programs
shall be offered by the Commission on Collegiate Nursing Education, American
Nurses Credentialing Center, Consortium for Advanced Practice Providers, or any
other accreditation body recognized by the preceptor credit assurance
committee.
�
Accreditation for pharmacy
students shall be offered by the Accreditation Council for Pharmacy Education or
any other accreditation body recognized by the preceptor credit assurance
committee.
�
Accreditation for pharmacy
residency programs shall be offered by the American Society of Health System
Pharmacists.
�
Accreditation for physician
assistant students shall be offered by the Accreditation Review Commission on
Education for the Physician Assistant, Inc. or any other accreditation body
recognized by the preceptor credit assurance committee.
�
Accreditation for physician assistant residency
programs shall be offered by the Consortium for Advanced Practice Providers; Accreditation
Review Commission on Education for the Physician Assistant, Inc.; or any other
accreditation body recognized by the preceptor credit assurance committee.
�
Accreditation for social work students shall
be offered by the Council on Social Work Education or any other accreditation
body recognized by the preceptor credit assurance committee.
�
New or additional accreditation bodies may be
eligible; provided that they are recognized by the preceptor credit assurance
committee.
����
"Pharmacy student" means
an individual participating in an academic program that is nationally
accredited for the training of individuals to become registered pharmacists
pursuant to chapter 461.
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"Physician assistant
student" means an individual participating in an academic program that is
nationally accredited for the education of physician assistants to become a
nationally certified and licensed physician assistant pursuant to section
453-5.3.
����
"Preceptor" means a
physician [
or
]
,
osteopathic physician,
or physician assistant
licensed pursuant to chapter 453[
,
]
;
an advanced practice registered
nurse[
,
] licensed pursuant to chapter 457[
, or
]
;
a
pharmacist[
,
] licensed pursuant to chapter 461[
,
]
; or a social
worker licensed pursuant to chapter 467E,
who is a resident of Hawaii [
and
who
]
,
maintains a professional [
primary care
] practice in [
this
]
the
State[
.
]
, and whose specialty supports the development and
training of an eligible student for clinical health care practice.
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[
"Primary care" means
the principal point of continuing care for patients provided by a healthcare
provider, including health promotion, disease prevention, health maintenance,
counseling, patient education, diagnosis and treatment of acute and chronic
illnesses, and coordination of other specialist care that the patient may need.
]
����
"Residency program" means
a residency or fellowship program that provides continuing training for
eligible professions, in the role of resident or fellow, to obtain the
additional qualifications that support professional practice.
�
"Residency program" includes
programs offered through employers or nationally accredited academic programs.
����
"Social work student"
means an individual participating in an academic program that is nationally
accredited for the training of individuals to become a social worker licensed
pursuant to chapter 467E.
����
"Volunteer-based supervised
clinical training rotation" means [
an uncompensated
]
a
period of supervised clinical training [
of
]
to
an eligible
student that totals at least eighty hours of supervisory time annually, in
which a preceptor provides personalized instruction, training, and supervision
to an eligible student to enable the eligible student to obtain an eligible
professional degree or training certificate[
.
]
; provided that while a
preceptor may be compensated for providing standard clinical services, the
preceptor shall be uncompensated for:
����
(1)
�
Clinical
training above or beyond clinical salary or reimbursements for clinical
services; and
����
(2)
�
Provision of
clinical training services from tuition funds or from state general funds.
"
����
SECTION
3
.
�
Section
321-2.7, Hawaii Revised Statutes, is amended as follows:
����
1.
�
By amending subsections (a) and (b) to read:
����
"(a)
�
There is established the preceptor credit assurance
committee within the department of health.
�
The committee shall develop and implement a plan for certifying healthcare
preceptor tax credits under section 235-110.25, including:
����
(1)
�
Developing a process
ensuring that requests for credit certification are reviewed and verifications are
processed no later than thirty days following the close of each calendar year;
and
����
(2)
�
Developing the documentation
process for the committee to certify a preceptor for the tax credit; provided that
the documentation to be collected shall include:
���������
(A)
�
The preceptor's name,
address, place of practice, and Hawaii provider license number;
���������
(B)
�
Dates and hours of
volunteer-based supervised clinical training rotation per eligible student;
���������
(C)
�
Attestation that the
preceptor is uncompensated for the volunteer-based supervised clinical training
rotation; [
and
]
provided further that if the preceptor is compensated
for providing standard clinical services, attestation that the preceptor is
uncompensated for:
�������������
(i)
�
C
linical
training above or beyond clinical salary or reimbursements for clinical
services; and
������������
(ii)
�
P
rovision
of clinical training services from tuition funds or from state general funds;
and
���������
(D)
�
Other information deemed
necessary by the committee.
����
(b)
�
The
committee shall be composed of [
representatives of
]:
����
(1)
�
[
The
Hawaii/Pacific basin area health education center;
]
The director of
health or the director's designee; and
����
(2)
�
[
The center for
nursing; and
]
Representatives
of:
���������
(A)
�
The
Hawaii/Pacific basin area health education center;
���������
(B)
�
The
center for nursing;
���������
(C)
�
Academic
programs with eligible students; and
���������
(D)
�
Residency
programs with eligible students.
���
[
(3)
�
Academic
programs with eligible students.
]"
����
2.
�
By amending subsection (e) to read:
����
"
(e)
�
As used in this section, "academic program",
"eligible student", "preceptor",
"residency
program",
and "volunteer-based supervised clinical training rotation"
shall have the same meanings as in section 235-110.25."
����
SECTION 4.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.
����
SECTION 5.
�
This Act, upon its approval, shall apply to
taxable years beginning after December 31, 2025.
INTRODUCED BY:
_____________________________
Report Title:
Healthcare
Preceptor Tax Credit; Physician Assistants; Social Workers; Residency Programs;
Preceptor Credit Assurance Committee; Director of Health
Description:
Expands
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
.
�
Adds physician assistants and social workers to the list of preceptors
and eligible students.
�
Expands
eligibility for the tax credit to include accredited residency programs that
require preceptor support
.
�
Adds the Director of Health and representatives
of residency programs with eligible students to the Preceptor Credit Assurance
Committee.
�
Applies to taxable years
beginning after 12/31/2025.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.