STAND. COM. REP. NO. 370-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1706

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 Human Services & Homelessness, to which was referred H.B. No. 1706 entitled:

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

begs leave to report as follows:

The purpose of this measure is to 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.

Your Committee received testimony in support of this measure from the Office of Hawaiian Affairs and one individual. Your Committee received comments on this measure from the Department of Human Services and Hawaii Medical Association.

Your Committee finds that the State faces a severe shortage of licensed mental health services, which has caused significant barriers to care for Medicaid beneficiaries. Your Committee further finds that enabling supervised pre-licensed mental health professionals to serve Medicaid recipients will increase the number of qualified providers available to low-income individuals and families, help reduce waitlists, and fill critical gaps in the State's behavioral health system.

Your Committee has amended this measure by:

(1) Clarifying that this measure is contingent upon and enforceable only to the extent approved by the federal Centers for Medicare and Medicaid Services;

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

(3) 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 Human Services & Homelessness that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1706, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1706, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Human Services & Homelessness,

____________________________

LISA MARTEN, Chair