Rep. Gregg Takayama

Establishes a comprehensive regulatory framework for prior authorization process in the State, including disclosure and notice requirements for utilization review entities regarding their prior authorization requirements and restrictions; qualifications and criteria for prior authorization review and appeals personnel; prior authorization process for non-urgent and urgent health care services, including the time frame by which utilization review entities must render a decision; adverse determination and appeal processes; prohibition of prior authorization for emergency health care services and medication for opioid use disorder; payments to health care providers; length and duration of prior authorizations; and exemptions for certain health care providers. Requires health insurers to utilize NCPDP SCRIPT Standard electronic prior authorization transactions by 1/1/2026. Requires utilization review entities to submit annual reports to the Insurance Commissioner each year. Requires the Insurance Commissioner to submit annual reports to the Legislature. Requires the Insurance Commissioner to adopt rules by 1/1/2026.

Authorizes physicians to practice at organized ambulatory health care facilities even if the physician does not have hospital privileges at a licensed hospital in the same geographic location as the ambulatory facility. Provides that a written transfer agreement is not required to transfer a patient from an organized ambulatory health care facility to a licensed hospital.

Adds psychology, physician assistant, marriage and family therapist, mental health counselor, clinical social worker, rehabilitation counselor, and school counselor students to the definition of "eligible student" under the qualifications for the healthcare preceptor tax credit. Amends the definition of "preceptor" by adding psychologists, physician assistants, marriage and family therapists, mental health counselors, clinical social workers, rehabilitation counselors, and school counselors to the list of preceptors eligible to receive the tax credit. Applies to taxable years beginning after 12/31/2025.

Prohibits persons from operating a medical cannabis dispensary or producing, manufacturing, or selling cannabis products without a license from the Department of Health. Prohibits individuals from providing certain services to individuals engaging in unlicensed cannabis operations. Requires the Department of Health to send a cease and desist notice to violators. Establishes criminal penalties.

Exempts from the general excise tax amounts received by a nurse entrepreneur for health care-related goods and services purchased under Medicaid, Medicare, or TRICARE.

Maddy summaryHB 717 requires all kratom product manufacturers to register with the state Department of Health beginning January 1, 2026. The bill also mandates specific labeling requirements for kratom products sold to consumers, including clear ingredient disclosures. This applies directly to businesses producing or selling kratom products within the state. The law aims to enhance consumer safety through mandatory registration and standardized product labeling.

Repeals existing law that preempted local ordinances or regulations that regulate the sale of cigarettes, tobacco products, and electronic smoking devices and nullified and voided any conflicting local laws and regulations. Allows counties to adopt ordinances that regulate the sale of cigarettes, tobacco products, and electronic smoking devices that do not conflict with and are more stringent than the state law that govern smoking.

Establishes and provides criteria for overdose prevention centers, including standards for the Department of Health to designate certain facilities as overdose prevention centers. Establishes an Overdose Prevention Center Oversight Committee. Provides immunity from state criminal prosecution for certain offenses for persons using a designated overdose prevention center and persons operating a designated overdose prevention center.

Requires a trigger lock for all firearms purchases from a licensed dealer. Requires licensed firearms dealers to provide purchasers with notice regarding the law on firearms storage. Amends the requirements for the secure storage of firearms and establishes fines for violations. Amends the offense of criminally negligent storage of a firearm.

For the Supplemental Nutrition Assistance Program, requires the Department of Human Services to: (1) prorate or exclude certain income from household members who are ineligible for the Program; (2) establish a standardized medical expense deduction option for elderly or disabled household members; (3) establish a pre-release Program application form for individuals who are incarcerated and scheduled for release; and (4) report to the Legislature. Specifies that, for purposes of the Supplemental Nutrition Assistance Program, the federal restriction of providing Program benefits to certain individuals does not apply in Hawaii.