Bill Text: HI SB2524 | 2014 | Regular Session | Introduced

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Bill Title: Work Site Wellness; Tax Incentive ($)

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2014-01-21 - Referred to HTH/EGH, WAM. [SB2524 Detail]

Download: Hawaii-2014-SB2524-Introduced.html

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THE SENATE	S.B. NO.	2524
TWENTY-SEVENTH LEGISLATURE, 2014
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to work site wellness.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  United States health care spending neared $2,600,000,000,000 in 2010, over ten times the amount spent in 1980.  Much of the cost of health care is used to treat obesity, diabetes, and heart disease, which are often caused or exacerbated by poor lifestyle choices.  The prevalence of such preventable chronic diseases is increasing.  For example, obesity in Hawaii has more than doubled between 1995 and 2009, and obesity-related medical expenditures in Hawaii were calculated to be over $470,000,000 in 2009, and the cost continues to rise.

     The prevention and management of obesity and other chronic diseases are major components of health care reform.  The work site, where the majority of Americans spend significant time, is an ideal setting to address health, well-being, and the prevention of chronic disease.  Employers can help their employees make better lifestyle choices by establishing wellness programs that seek to maintain and promote good health.  From the employers' perspective, wellness programs can reduce health care costs, reduce absenteeism, and improve employee retention.  Recent empirical research validates that health promotion programs at the work site can improve health, save money, and produce a return on investment.

     The goal of wellness programming is to build wellness and healthy living into the work day by making positive changes in the workplace.  Wellness programs involve changes to the work environment, policies, and employee activities that build healthy habits.  For example, employers can make healthy food and beverages available by providing healthy options in dining facilities, at meetings and conferences, and in vending machines located in the workplace.  Employees may be given time to participate in health risk assessments and ensuing wellness and disease management programs that are part of employer-provided health plans.  Employers can support employees biking or walking to and from the workplace, or encourage walk-and-talk meetings instead of sitting meetings.  Adopting policies and practices such as these can help change the social norms in work sites.  Healthy activities and educational sessions can also be extended to employees' families and to retirees.  All of these things can contribute to a healthier and more productive workforce, and can help to reduce health care costs.

     The purpose of this Act is to encourage employers to create comprehensive wellness programs for their employees by creating a tax credit and by providing criteria, training, and technical assistance to assist employers with creating wellness programs.  This Act can assist businesses throughout the State who will be offered technical assistance and training on how to develop, enhance, and sustain a successful wellness program.

     SECTION 2.  Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§235‑    Wellness program tax credit.  (a)  There shall be allowed to each taxpayer subject to the taxes imposed by this chapter, an income tax credit which shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed.  In the case of a partnership, S corporation, estate, or trust, the tax credit allowable is for qualified costs incurred by the entity for the taxable year.  The cost upon which the tax credit is computed shall be determined at the entity level.  Distribution and share of the credit shall be determined by rule.

     (b)  For the purposes of this section:

     "Qualified costs" means the expenses incurred in establishing and developing a qualified wellness program.

     "Qualified wellness program" means a wellness program offered by an employer to all employees that receives a certification for meeting the wellness program criteria from the department of health.

     "Wellness program" means an employer-provided program that consists of the following components:

     (1)  Health-risk assessment;

     (2)  Behavioral-change support; and

     (3)  Supportive work environment.

     (c)  The director of health shall adopt rules pursuant to chapter 91 that shall determine the criteria for eligibility for the credit.  The rules shall require proof of using a qualified wellness program.  The department of health shall issue a certification to the taxpayer after the taxpayer submits documentation as required by the department of health.  Such certification shall be acceptable as proof of the qualified costs related to the implementation of a qualified wellness program for the purposes of the credit allowed under this section.

(d)  The department of health, in consultation with the department of taxation, shall provide a certificate of approval to qualified wellness programs implemented by employers.  In developing criteria for a wellness program certificate of approval, the department of health shall consider:

     (1)  Whether the wellness program provides new or innovative services;

     (2)  Participation rate by employees;

     (3)  Quality of the health education being provided;

     (4)  Whether the program promotes health screenings and other preventive health care measures; and

     (5)  Whether the program promotes a healthy workplace environment.

(e)  The director of health, in consultation with the director of taxation, shall create a form that indicates an employer is using a qualified wellness program.

     (f)  The tax credit shall be equal to fifty per cent of the qualified costs paid or incurred by the employer in connection with a qualified wellness program, subject to the following:

     (1)  The costs included in the wellness program credit computation related to fees paid by the employer for physical fitness programs shall not exceed $30 per month per qualified employee;

     (2)  The total credit allowed for an employer in any taxable year shall not exceed the product of $100 and the monthly average of the number of qualified employees of the employer;

     (3)  Costs paid or incurred by an employer for health insurance shall not be taken into account when calculating the costs included in the wellness program credit computation;

     (4)  The total amount of credit claimed on returns filed by all employers in the State's fiscal year shall not exceed the annual wellness program credit cap.  If the total amount of credit claimed on returns filed by all employers in the State's fiscal year exceeds the wellness program credit annual cap, the credit shall be allowed to employers based on the date of certification by the department of health on a first come, first served basis.  Any employer who is certified by the department of health in a fiscal year and who does not receive the wellness program credit because the annual credit cap has been exceeded for that fiscal year shall receive priority for the credit in the following fiscal year before employers receiving certification in that fiscal year; and

     (5)  The annual wellness program credit cap shall be determined by the director of taxation for each year from January 1 to December 31 beginning in 2015 and ending on December 31, 2020.

     (g)  If the tax credit under this section exceeds the taxpayer's net income tax liability, the amount of the excess tax credit over payments due shall be refunded to the eligible taxpayer.

     (h)  Every claim, including amended claims, for the tax credit under this section shall be filed on or before the end of the twelfth month following the close of the taxable year for which the tax credit may be claimed.  Failure to meet the filing requirements of this subsection shall constitute a waiver of the right to claim the tax credit.

     (i)  No taxpayer shall claim any other credit under this chapter for the same qualified costs used to properly claim a tax credit under this section for the taxable year.

     (j)  The director of taxation:

     (1)  Shall prepare forms as may be necessary to claim the tax credit under this section;

     (2)  Shall require the taxpayer to furnish certification designated by the department of health to ascertain the validity of the claim for the tax credit; and

     (3)  May adopt rules pursuant to chapter 91 to effectuate the purposes of this section.

     (k)  This section shall not apply to any amount paid or incurred before January 1, 2015, or after December 31, 2020."

     SECTION 3.  The department of health shall provide to private employers and state and county agencies, training and technical assistance based on the established criteria and certification for wellness programs.

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2014-2015 to:

     (1)  Develop criteria and certification for the wellness program certificate of approval;

     (2)  Develop work site wellness tools and training materials for public and private employers; and

     (3)  Provide training and technical assistance to public and private employers.

     The sum appropriated shall be expended by the department of health for the purposes of this Act.

     SECTION 5.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect upon its approval; provided that this Act shall apply to taxable years beginning after December 31, 2014, but not after December 31, 2020.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Work Site Wellness; Tax Incentive

 

Description:

Creates tax incentive for employers that implement work site wellness programs.  Requires the department of health to establish eligibility criteria for the wellness program tax credit. Requires the department of health to provide training and technical assistance to employers creating wellness programs.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.