Posted on: Tuesday, March 19, 2002

Disability tax plan dead; program setup created

By Lynda Arakawa
Advertiser Capitol Bureau

A proposal for a $10 monthly tax to pay for long-term care for the disabled appears dead this session after a Senate panel yesterday voted instead to create an entity to set up a program.

The Senate Health and Human Services Committee passed a bill that would create a trust account and board of trustees to set up a state long-term care program.

Committee Chairman David Matsuura, D-2nd (S. Hilo, Puna), said there were serious questions about whether the tax plan would comply with federal insurance regulations, and how the money would be collected.

"There are a lot of unanswered questions out there, so we just decided we're too far gone on the session already, let the pros come in," Matsuura said. "It's a good incremental first step."