STAND. COM. REP. NO. 1539-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 3025

S.D. 2

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. 3025, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO MEDICAL DEBT,"

begs leave to report as follows:

The purpose of this measure is to require, and appropriate funds to, the Office of Wellness and Resilience to develop, implement, and administer a Medical Debt Acquisition and Forgiveness Program for certain individuals in the State with outstanding medical debt.

Your Committee received testimony in support of this measure from the Office of Wellness and Resilience; Healthcare Association of Hawaii; AlohaCare; The Queen's Health Systems; Holomua Collaborative; Hawaiʻi Public Health Institute; Mana Up; HPM Building Supply; Hawaii Appleseed Center for Law & Economic Justice; American Cancer Society Cancer Action Network; Indivisible Hawaii Healthcare Team; and three individuals. Your Committee received testimony in opposition to this measure from two individuals. Your Committee received comments on this measure from the State Procurement Office.

Your Committee finds that medical debt imposes significant financial hardship on individuals and families in the State, often arising from necessary medical care rather than discretionary spending. Your Committee further finds that outstanding medical debt can exacerbate housing instability, limit access to credit, and discourage individuals from seeking timely medical treatment, resulting in adverse health and economic outcomes.

Your Committee additionally finds that targeted efforts to reduce or eliminate medical debt can provide immediate financial relief to affected households, improve health-seeking behavior, and promote overall economic stability. Establishing a program to acquire and forgive medical debt will advance consumer protection, support public health, and alleviate the long-term impacts of medical debt on vulnerable populations.

Your Committee has amended this measure by:

(1) Authorizing, rather than requiring, the Office of Wellness and Resilience (Office) to develop, implement, and administer a Medical Debt Acquisition and Forgiveness Program (Program);

(2) Amending the requirements of the Program;

(3) Authorizing, rather than requiring, the Office to procure and contract with entities for the purposes of developing, implementing, and administering the Program;

(4) Specifying that any acquisition and forgiveness of medical debt under the Program is deemed fully forgiven upon payment of a certain amount of the overall medical debt of each individual;

(5) Clarifying the reporting requirement under this measure;

(6) Clarifying the requirements of the appropriation, including requiring a dollar-for-dollar match from a private source;

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

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

Your Committee respectfully requests your Committee on Finance, should it deliberate on this measure, to consider an appropriation amount of $500,000.

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. 3025, S.D. 2, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as S.B. No. 3025, S.D. 2, H.D. 2.

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

____________________________

SCOT Z. MATAYOSHI, Chair