STAND. COM. REP. NO. 2119-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2089

S.D. 1

H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 2089, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO MENTAL HEALTH,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Expand the services eligible for Medicaid Prospective Payment System reimbursement to include certain services furnished by a federally qualified health center or rural health clinic and provided by mental health professionals under the clinical supervision of a licensed mental health professional; and

(2) Require the Department of Human Services to adopt rules for this purpose and seek federal approvals as necessary.

Your Committee received testimony in support of this measure from the Office of Hawaiian Affairs; State Council on Mental Health; State Health Planning and Development Agency; Hawaii Medical Association; AlohaCare; Akahai Emotional Wellness, LLC; and one individual. Your Committee received comments on this measure from the Department of Human Services.

Your Committee finds that the State's severe behavioral health workforce shortage causes extended wait times and limits timely access to care, particularly for Medicaid beneficiaries and those in rural and medically underserved communities. This measure allows supervised, pre-licensed mental health professionals to provide reimbursable services, which will expand the workforce available to meet community needs, improve continuity of care for patients in underserved areas, and strengthen the pipeline of mental health professionals who are working toward full licensure.

Your Committee has amended this measure by:

(1) Requiring the Department of Human Services to adopt rules regarding minimum qualifications, supervision standards, and Medicaid beneficiary protections for services provided by mental health professionals practicing under clinical supervision; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2089, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2089, S.D. 1, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

SCOT Z. MATAYOSHI, Chair