STAND

STAND. COM. REP. NO. 170-06

Honolulu, Hawaii

, 2006

RE: H.B. No. 2321

H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Health, to which was referred H.B. No. 2321 entitled:

"A BILL FOR AN ACT RELATING TO TORTS,"

begs leave to report as follows:

The purpose of this bill is to reduce healthcare costs by reforming the healthcare liability system to resolve healthcare liability claims and to compensate injured patients by, among other things:

(1) Implementing a cap of $250,000 in medical tort actions; and

(2) Limiting the contingency fee that an attorney can claim in a medical tort action.

The Department of Commerce and Consumer Affairs; Department of Health; Hawaii Medical Association; Kaiser Permanente; American College of Obstetricians and Gynecologists, Hawaii Section; Healthy Mothers, Healthy Babies; Hawaii Psychiatric Medical Association; and Hawaii Association of Health Plans testified in support of this bill. The Consumer Lawyers of Hawaii opposed this measure.

Your Committee has amended this bill by:

(1) Limiting the $250,000 maximum award to medical tort actions against obstetricians, obstetrician gynecologists, and trauma care providers;

(2) Requiring the Insurance Commissioner to submit a report to the Legislature no later than 20 days prior to the convening of the Regular Session of 2010 with regard to the implementation of this measure;

(3) Adding a repeal date of July 1, 2010; and

(4) Making other technical, nonsubstantive amendments for clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2321, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2321, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.

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

		____________________________ DENNIS A. ARAKAKI, Chair