STAND. COM. REP. NO. 325

Honolulu, Hawaii

RE: S.B. No. 1423

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Health and Human Services, to which was referred S.B. No. 1423 entitled:

"A BILL FOR AN ACT RELATING TO AMENDING SECTION 323D-54, HAWAII REVISED STATUTES, TO EXEMPT THE DEPARTMENT OF HEALTH FROM CERTIFICATE OF NEED REQUIREMENTS,"

begs leave to report as follows:

The purpose and intent of this measure is to exempt health care facilities operated or services provided by the Department of Health from the State Health Planning and Development Agency's certificate of need requirements.

Your Committee received testimony in support of this measure from the Department of Health, Grassroot Institute of Hawaii, and one individual.

Your Committee finds that prior approval, known as the certificate of need, from the State Health Planning and Development Agency is required to construct, expand, alter, convert, develop, initiate, or modify a health care facility or health care services in the State. Your Committee further finds that the Department of Health, as a governmental entity, addresses health care needs not otherwise met by the private sector, and which require funding from the Legislature. This measure improves the Department of Health's capacity, efficiency, and timeliness in responding to health care needs throughout the State.

Your Committee has amended this measure by:

(1) Inserting language to exempt chronic renal dialysis centers and psychiatric behavioral health services from the State Health Planning and Development Agency's certificate of need requirements; and

(2) Making a technical, nonsubstantive amendment 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. 1423, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1423, 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,

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JOY A. SAN BUENAVENTURA, Chair