STAND. COM. REP. NO. 633-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1648

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Labor, to which was referred H.B. No. 1648 entitled:

"A BILL FOR AN ACT RELATING TO WORKERS' COMPENSATION,"

begs leave to report as follows:

The purpose of this measure is to prohibit health care providers from prescribing or dispensing nonprescription drugs, over‑the‑counter drugs, and nonlegend drugs for workers' compensation.

Your Committee received testimony in support of this measure from the Hawaii Insurers Council; American Property Casualty Insurance Association; Work Injury Medical Association of Hawaiʻi; and one individual. Your Committee received testimony in opposition to this measure from the Solera Integrated Medical Solutions and Premier Medical Group Hawaii. Your Committee received comments on this measure from the Department of Labor and Industrial Relations and Department of Human Resources Development.

Your Committee finds that unclear reimbursement rates for nonprescription and over-the-counter drugs have resulted in inflated charges within the workers' compensation system, increasing overall insurance costs. The absence of clear statutory guidance has enabled inconsistent pricing practices that place a financial burden on employers and insurers. This measure clarifies and strengthens the system and eliminates opportunities for inflated billing.

Your Committee has amended this measure by:

(1) Removing the prohibition on the prescription of nonprescription drugs, over-the-counter drugs, or nonlegend drugs;

(2) Including non-United States Food and Drug Administration approved drugs in the prohibition;

(3) Changing the effective date to July 1, 3000, to encourage further discussion; and

(4) 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 Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1648, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1648, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Labor,

____________________________

JACKSON D. SAYAMA, Chair