STAND. COM. REP. NO. 2292

Honolulu, Hawaii

RE: S.B. No. 3139

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Health and Human Services, to which was referred S.B. No. 3139 entitled:

"A BILL FOR AN ACT RELATING TO THE STATE HEALTH PLANNING AND DEVELOPMENT AGENCY,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Amend the functions and responsibilities of the State Health Planning and Development Agency;

(2) Add a new definition of "health care" for chapter 323D, Hawaii Revised Statutes, that governs the State's health planning and resources development and health care cost control;

(3) Amend the exemption threshold for bed changes to up to thirty percent of existing licensed bed types; and

(4) Exempt the Department of Health from certificate of need requirements.

Your Committee received testimony in support of this measure from the State Health Planning and Development Agency and Grassroot Institute of Hawaii.

Your Committee received comments on this measure from the Hawaii Medical Service Association.

Your Committee finds that many of the State's large health care agencies and programs, including the Department of Health, Department of Human Services, and Hawaii Health Systems Corporation, have historically operated in isolation, leading to a lack of coordination in direction and outcomes. Your Committee further finds that one of the missions of the State Health Planning and Development Agency is to help the State achieve a shared vision of the ideal future of health care in the State. This measure modernizes the State Health Planning and Development Agency's principle statutory functions to better reflect its responsibilities and authority in promoting universal access to high-quality, equitable, and affordable health care for all the people of the State and a shared vision of the State's health care future.

Your Committee acknowledges the concerns raised in testimony by the Hawaii Medical Service Association that this measure could be interpreted to expand the authority of the State Health Planning and Development Agency beyond its traditional health planning and facilities-based role, into areas such as health insurance coverage and rates, benefit design, reimbursement, and related matters that are governed under separate statutory and regulatory frameworks. Therefore, amendments to this measure are necessary to address this concern.

Your Committee has amended this measure by:

(1) Deleting language that would have specified that the health planning activities of the State Health Planning and Development Agency includes health insurance coverage and rates, health insurance benefits and affordability, and workforce development and reimbursement;

(2) Inserting language to require the State Health Planning and Development Agency to establish a state health services and facilities plan, rather than a state health services, workforce, and facilities plan;

(3) Inserting an effective date of January 30, 2050, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Health and Human Services that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3139, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3139, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Health and Human Services,

________________________________

JOY A. SAN BUENAVENTURA, Chair