STAND. COM. REP. NO. 2116-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2271

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. 2271, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOSPITAL LICENSING,"

begs leave to report as follows:

The purpose of this measure is to permit hospitals to demonstrate compliance with all licensing inspections required by the State through accreditation or certification by any accreditation or certification organization approved by the Centers for Medicare and Medicaid Services.

Your Committee received testimony in support of this measure from the Department of Health; Hawaiʻi State Council on Developmental Disabilities; State Health Planning and Development Agency; Healthcare Association of Hawaii; Hawaiʻi Pacific Health; and Kaiser Permanente Hawaiʻi.

Your Committee finds that hospitals are subject to comprehensive accreditation and certification requirements established by organizations approved by the Centers for Medicare and Medicaid Services to ensure patient safety and quality of care. However, under existing state law, the Department of Health is only allowed to accept accreditation by The Joint Commission to demonstrate compliance with state licensing inspections. Your Committee further finds that allowing the Department of Health to accept accreditation or certification by any Centers for Medicare and Medicaid Services-approved hospital accreditation or certification organization will maintain high standards, strengthen alignment with federal oversight, and use state resources more effectively while also preserving the Office of Health Care Assurance's ability to respond to complaints and patient safety concerns.

Your Committee has amended this measure by:

(1) Clarifying that a hospital is required to provide the Department of Health with any updated official accreditation or certification reports; 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. 2271, 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. 2271, S.D. 1, H.D. 2.

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

____________________________

SCOT Z. MATAYOSHI, Chair