SB800

SECTION 1. The legislature finds that state licensing boards are intended to protect the public from licensed professionals who are inadequately trained or incompetent, or whose conduct is illegal or abusive towards consumers. The licensing boards provide a mechanism for consumers to file complaints about perceived unlawful or inappropriate action by the licensed professional, for the boards to then investigate and sanction if warranted. However, the licensing boards are not automatically provided notification when a lawsuit or administrative complaint is filed against a licensee. Existing law requires only that the licensing boards be notified if a final judgment, sanction, conviction, or settlement is enforced by other entities against a licensee.

Accordingly, to better ensure consumer protection, the purpose of this Act is to:

(1) Require mandatory reporting to licensing boards by a licensee of any pending legal claim, action, or administrative complaint filed against the licensee, and for the licensing authority to review that complaint and make any further inquiries; and

(2) Require the professional and vocational licensing division of the department of commerce and consumer affairs to review its procedures for oversight of licensed occupations and assess whether additional information about complaints and discipline against licensees should be made public.

SECTION 2. Chapter 436B, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . Notice of legal action, claim, or complaint against licensee

§436B-A Application of part. Notwithstanding section 436B-3, this part shall apply to all professions and vocations required by law to be regulated by a licensing authority in the State.

§436B-B Notice of legal action or administrative complaint pending against licensee; licensee and court obligation.

(a) Within thirty days of a licensee's receipt of a complaint, claim, or action for damages filed in a court or an administrative complaint filed with a state or federal agency against the licensee for actions related to the licensee's license, the licensee shall provide written notice of the filing to the respective licensing board and provide a copy of the complaint, claim, or action. Failure to comply shall subject the licensee to the penalties established pursuant to section 436B-16(b).

(b) Within thirty days of the filing of a complaint, claim, or action for damages against a licensee for actions related to the licensee's license, the clerk of the court or administrator of the agency that received the filing shall send to the respective board a copy of the complaint, claim, or action.

§436B-C Licensing authority review of legal action or complaint filed against licensee. Upon receipt of notice of legal action or complaint filed against a licensee for violations of the license, the respective licensing board shall review the information and make further inquiry as needed."

SECTION 3. Section 453-8.7, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) Every physician or osteopathic physician licensed pursuant to this chapter who does not possess professional liability insurance shall report any complaint, claim, or action for damages filed in a court, or an administrative complaint filed with a state or federal agency against the physician for actions related to the physician's license, or settlement or arbitration award of a claim or action for damages for death or personal injury caused by negligence, error, or omission in practice, or the unauthorized rendering of professional services. The report shall be submitted to the department of commerce and consumer affairs within thirty days after the licensee's receipt of written notice of any complaint, claim, or action for damages, or within thirty days after any written settlement agreement has been reduced to writing and signed by all the parties thereto, or thirty days after service of the arbitration award on the parties."

2. By amending subsection (c) to read:

"(c) The clerks of the respective courts of this State shall report to the department any complaint, claim, or action for damages for any death or personal injury caused by the physician's or osteopathic physician's professional negligence, error, or omission in the practice of the physician's or osteopathic physician's profession, or rendering of unauthorized professional services, or judgment or other determination of the court, which adjudges or finds that a physician or osteopathic physician is liable criminally or civilly for any death or personal injury caused by the physician's or osteopathic physician's professional negligence, error, or omission in the practice of the physician's or osteopathic physician's profession, or rendering of unauthorized professional services. The report shall be submitted to the department within ten days after the complaint, claim, or action for damages is filed with the court or the judgment is entered by the court."

SECTION 4. Section 671-5, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) Every self-insured health care provider, and every insurer providing professional liability insurance for a health care provider, shall report to the insurance commissioner the following information about any medical tort claim, known to the self-insured health care provider or insurer, that has been filed with the court or settled, arbitrated, or adjudicated to final judgment within ten working days following [~~such~~] the disposition:

(1) The name and last known business and residential addresses of each plaintiff and claimant, whether or not each recovered anything;

(2) The name and last known business and residential addresses of each health care provider who was claimed or alleged to have committed a medical tort, whether or not each was a named defendant and whether or not any recovery was had against each;

(3) The name of the court in which any medical tort action, or any part thereof, was filed and the docket number;

(4) A brief description or summary of the facts upon which each claim was based, including the date of occurrence;

(5) The name and last known business and residential addresses of each attorney for any party to the settlement, arbitration, or adjudication, and identification of the party represented by each attorney;

(6) Funds expended for defense and plaintiff costs;

(7) The date and amount of settlement, arbitration award, or judgment in any matter subject to this subsection; and

(8) Actual dollar amount of award received by the injured party.

(b) The insurance commissioner shall forward the name of every health care provider, except a hospital and physician or an osteopathic physician or surgeon licensed under chapter 453 or a podiatrist licensed under chapter 463E, against whom a claim is made, settlement is made, an arbitration award is made, or judgment is rendered to the appropriate board of professional registration and examination for review of the fitness of the health care provider to practice the health care provider's profession. The insurance commissioner shall forward the entire report under subsection (a) to the department of commerce and consumer affairs if the person against whom a claim, settlement, or arbitration award is made or judgment rendered is a physician or osteopathic physician or surgeon licensed under chapter 453 or a podiatrist licensed under chapter 463E."

SECTION 5. The professional and vocational licensing division of the department of commerce and consumer affairs shall review its procedures for oversight of licensed occupations and assess whether additional information about complaints and discipline against licensees should be made available to the public and submit a report to the legislature no later than forty days prior to the convening of the Regular Session of 2026.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	800
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII