STAND. COM. REP. NO. 2080-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2804

S.D. 1

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 Consumer Protection & Commerce, to which was referred S.B. No. 2804, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO COMMERCE,"

begs leave to report as follows:

The purpose of this measure is to prohibit acquiring and holding stocks and other interests if the acquisition and holding lessens access to health care or increases insurance rates.

Your Committee received testimony in support of this measure from The Queen's Health Systems. Your Committee received testimony in opposition to this measure from the Hawaii Medical Service Association. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs; Hawaii Association of Health Plans; and Hawaiʻi Pacific Health.

Your Committee finds that acquisitions and ownership arrangements in the health care sector can affect competition in ways that may reduce access to health care services or contribute to increased insurance costs. Your Committee further finds that clarifying the application of existing antitrust and unfair competition laws to transactions that lessen access to health care or increase insurance rates strengthens consumer protection and market oversight. This measure reinforces these statutory safeguards, thereby promoting fair competition and supporting affordable and accessible health care for Hawaii residents.

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. 2804, S.D. 1, H.D. 1, and recommends that it pass Third Reading.

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

____________________________

SCOT Z. MATAYOSHI, Chair