SB 2804: Monopolies; Restraint of Trade; Health Care; Insurance
- Session Year: 2025-2026
- House: Senate
- Latest Version Date: 2026-03-23
Current Status:
Failed
(2026-04-16: Received notice of disagreement (Sen. Com. No. 710).)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
What does this bill do?
The bill amends Hawaii’s antitrust law to prohibit companies or investors from buying or holding stock, membership, or assets when the deal would substantially reduce access to health care or raise insurance rates. It still allows passive investments and owning or forming subsidiaries when those actions do not substantially lessen competition.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Prohibits acquiring and holding stocks and other interests if the acquisition and holding lessens access to health care or increases insurance rates. Effective 7/1/3000. (HD1)
Prohibits acquiring and holding stocks and other interests if the acquisition and holding lessens access to health care or increases insurance rates. Effective 1/30/2050. (SD1)
Prohibits acquiring and holding stocks and other interests if the acquisition and holding lessens access to health care or increases insurance rates.
|
THE SENATE |
S.B. NO. |
2804 |
|
THIRTY-THIRD LEGISLATURE, 2026 |
S.D. 1 |
|
|
STATE OF HAWAII |
H.D. 1 |
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO COMMERCE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 480-7, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) No person shall acquire and hold, directly or indirectly, the whole or any part of the stock, interest, or membership of any other person, or the whole or any part of the assets of any other person, where the effect of the acquisition and holding may be substantially to lessen competition, lessen access to health care, increase insurance rates, or to tend to create a monopoly in any line of commerce in any section of the State; provided that this subsection shall not apply to any person acquiring and holding the stock, interest, or membership solely for investment and not using the same by voting or otherwise to bring about, or in attempting to bring about, the substantial lessening of competition or the creation of a monopoly in any line of commerce in any section of the State. Nor shall anything in this subsection prevent a person from causing the formation of a subsidiary business entity for the actual carrying on of its immediate lawful business, or the natural and legitimate branches or extensions thereof, or from owning and holding all or a part of the stock, interest, or membership of a subsidiary business entity, when the effect of the formation is not substantially to lessen competition.
As used in this subsection:
"Control" means:
(1) Owning or having the power to vote eighty per cent or more of any class of voting securities of the subsidiary;
(2) Having the power to elect, by any means, a majority of the directors; or
(3) Having the power to exercise a dominant influence over the management and policies of the subsidiary.
"Subsidiary" means any person that is under the control of a person."
SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 3.
New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 3000.
Report Title:
Monopolies; Restraint of Trade; Health Care; Insurance
Description:
Prohibits acquiring and holding stocks and other interests if the acquisition and holding lessens access to health care or increases insurance rates. Effective 7/1/3000. (HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
THE SENATE |
S.B. NO. |
2804 |
|
THIRTY-THIRD LEGISLATURE, 2026 |
S.D. 1 |
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO COMMERCE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 480-7, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) No person shall acquire and hold, directly or indirectly, the whole or any part of the stock, interest, or membership of any other person, or the whole or any part of the assets of any other person, where the effect of the acquisition and holding may be substantially to lessen competition, lessen access to health care, increase insurance rates, or to tend to create a monopoly in any line of commerce in any section of the State; provided that this subsection shall not apply to any person acquiring and holding the stock, interest, or membership solely for investment and not using the same by voting or otherwise to bring about, or in attempting to bring about, the substantial lessening of competition or the creation of a monopoly in any line of commerce in any section of the State. Nor shall anything in this subsection prevent a person from causing the formation of a subsidiary business entity for the actual carrying on of its immediate lawful business, or the natural and legitimate branches or extensions thereof, or from owning and holding all or a part of the stock, interest, or membership of a subsidiary business entity, when the effect of the formation is not substantially to lessen competition.
As used in this subsection:
"Control" means:
(1) Owning or having the power to vote eighty per cent or more of any class of voting securities of the subsidiary;
(2) Having the power to elect, by any means, a majority of the directors; or
(3) Having the power to exercise a dominant influence over the management and policies of the subsidiary.
"Subsidiary" means any person that is under the control of a person."
SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect on January 30, 2050.
Report Title:
Monopolies; Restraint of Trade; Health Care; Insurance
Description:
Prohibits acquiring and holding stocks and other interests if the acquisition and holding lessens access to health care or increases insurance rates. Effective 1/30/2050. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
THE SENATE |
S.B. NO. |
2804 |
|
THIRTY-THIRD LEGISLATURE, 2026 |
|
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
relating to commerce.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 480-7, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) No person shall acquire and hold, directly or indirectly, the whole or any part of the stock, interest, or membership of any other person, or the whole or any part of the assets of any other person, where the effect of the acquisition and holding may be substantially to lessen competition, lessen access to health care, increase insurance rates, or to tend to create a monopoly in any line of commerce in any section of the State; provided that this subsection shall not apply to any person acquiring and holding the stock, interest, or membership solely for investment and not using the same by voting or otherwise to bring about, or in attempting to bring about, the substantial lessening of competition or the creation of a monopoly in any line of commerce in any section of the State. Nor shall anything in this subsection prevent a person from causing the formation of a subsidiary business entity for the actual carrying on of its immediate lawful business, or the natural and legitimate branches or extensions thereof, or from owning and holding all or a part of the stock, interest, or membership of a subsidiary business entity, when the effect of the formation is not substantially to lessen competition.
As used in this subsection:
"Control" means:
(1) Owning or having the power to vote eighty per cent or more of any class of voting securities of the subsidiary;
(2) Having the power to elect, by any means, a majority of the directors; or
(3) Having the power to exercise a dominant influence over the management and policies of the subsidiary.
"Subsidiary" means any person that is under the control of a person."
SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
|
INTRODUCED BY: |
_____________________________ |
|
|
|
Report Title:
Monopolies; Restraint of Trade; Health Care; Insurance
Description:
Prohibits acquiring and holding stocks and other interests if the acquisition and holding lessens access to health care or increases insurance rates.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
Date
|
Status
|
|---|---|
| Apr 16, 2026 | Received notice of disagreement (Sen. Com. No. 710). |
| Apr 16, 2026 | Senate disagrees with House amendments. |
| Apr 16, 2026 | Received from House (Hse. Com. No. 703). |
| Apr 14, 2026 | Passed Third Reading with none voting aye with reservations; Representative(s) Shimizu voting no (1) and Representative(s) Quinlan excused (1). Transmitted to Senate. |
| Apr 10, 2026 | Deferred one day 04-14-26. |
| Apr 10, 2026 | Reported from CPC (Stand. Com. Rep. No. 2080-26), recommending passage on Third Reading. |
| Apr 7, 2026 | The committee on CPC recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 11 Ayes: Representative(s) Matayoshi, Grandinetti, Chun, Ilagan, Ichiyama, Iwamoto, Kong, Lowen, Marten, Tam, Pierick; Ayes with reservations: none; Noes: none; and Excused: none. |
| Apr 2, 2026 | Bill scheduled to be heard by CPC on Tuesday, 04-07-26 2:05PM in House conference room 329 VIA VIDEOCONFERENCE. |
| Mar 24, 2026 | Passed Second Reading as amended in HD 1 and referred to the committee(s) on CPC with none voting aye with reservations; none voting no (0) and Representative(s) Garrett, Quinlan excused (2). |
| Mar 24, 2026 | Reported from HLT (Stand. Com. Rep. No. 1352-26) as amended in HD 1, recommending passage on Second Reading and referral to CPC. |
| Mar 20, 2026 | The committee on HLT recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 9 Ayes: Representative(s) Takayama, Keohokapu-Lee Loy, Amato, Marten, Olds, Takenouchi, Alcos, Garcia; Ayes with reservations: Representative(s) Hartsfield; Noes: none; and Excused: none. |
| Mar 17, 2026 | Bill scheduled to be heard by HLT on Friday, 03-20-26 9:30AM in House conference room 329 VIA VIDEOCONFERENCE. |
| Mar 12, 2026 | Referred to HLT, CPC, referral sheet 17 |
| Mar 12, 2026 | Pass First Reading |
| Mar 10, 2026 | Received from Senate (Sen. Com. No. 299) in amended form (SD 1). |
| Mar 10, 2026 | Report adopted; Passed Third Reading. Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House. |
| Mar 6, 2026 | One Day Notice 03-10-26. |
| Mar 6, 2026 | Reported from CPN/JDC (Stand. Com. Rep. No. 2896) with recommendation of passage on Third Reading. |
| Mar 4, 2026 | The committee(s) on JDC recommend(s) that the measure be PASSED, UNAMENDED. The votes in JDC were as follows: 5 Aye(s): Senator(s) Rhoads, Gabbard, Chang, San Buenaventura, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. |
| Mar 4, 2026 | The committee(s) on CPN recommend(s) that the measure be PASSED, UNAMENDED. The votes in CPN were as follows: 4 Aye(s): Senator(s) Keohokalole, Fukunaga, Lamosao, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) McKelvey. |
| Feb 27, 2026 | The committee(s) on CPN/JDC will hold a public decision making on 03-04-26 9:25AM; Conference Room 229 & Videoconference. |
| Feb 18, 2026 | Report adopted; Passed Second Reading, as amended (SD 1) and referred to CPN/JDC. |
| Feb 18, 2026 | Reported from HHS (Stand. Com. Rep. No. 2346) with recommendation of passage on Second Reading, as amended (SD 1) and referral to CPN/JDC. |
| Feb 13, 2026 | The committee(s) on HHS recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in HHS were as follows: 5 Aye(s): Senator(s) San Buenaventura, McKelvey, Kanuha, Keohokalole, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. |
| Feb 10, 2026 | The committee(s) on HHS added the measure to the public hearing scheduled on 02-13-26 1:00PM; CR 225 & Videoconference. |
| Jan 30, 2026 | Referred to HHS, CPN/JDC. |
| Jan 26, 2026 | Passed First Reading. |
| Jan 23, 2026 | Introduced. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Apr 14, 2026 | Third Reading | House Floor |
Passed |
|
| Apr 7, 2026 | The committee on CPC recommend that the measure be PASSED, UNAMENDED | House Standing Committee on Consumer Protection & Commerce |
Passed |
|
| Mar 20, 2026 | The committee on HLT recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Health |
Passed |
|
| Mar 10, 2026 | Third Reading | Senate Floor |
Passed |
|
| Mar 4, 2026 | The committee(s) on JDC recommend(s) that the measure be PASSED, UNAMENDED | Senate Standing Committee on Judiciary |
Passed |
|
| Mar 4, 2026 | The committee(s) on CPN recommend(s) that the measure be PASSED, UNAMENDED | Senate Standing Committee on Commerce and Consumer Protection |
Passed |
|
| Feb 13, 2026 | The committee(s) on HHS recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Health and Human Services |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Hawaii Medical Service Association (HMSA) | *** Against | Apr 7, 2026 |
| Hawaiʻi Association of Health Plans | *** Against | Apr 7, 2026 |
| Hawaiʻi Association of Health Plans (HAHP) | *** Against | Mar 20, 2026 |
| The Queen’s Health Systems | *** Support | Apr 7, 2026 |
STAND. COM. REP. NO. 2896
Honolulu, Hawaii
RE: S.B. No. 2804
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2026
State of Hawaii
Sir:
Your Committees on Commerce and Consumer Protection and Judiciary, to which was referred S.B. No. 2804, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO COMMERCE,"
beg leave to report as follows:
The purpose and intent of this measure is to prohibit the acquisition and holding of stocks and other interests if the acquisition and holding lessens access to health care or increases insurance rates.
Your Committees received testimony in support of this measure from one individual.
Your Committees received comments on this measure from the Insurance Division of the Department of Commerce and Consumer Affairs and Hawaii Medical Service Association.
Your Committees find that the health insurance sector is undergoing a period of significant market realignment. This measure provides safeguards to preserve competition, retain choice and access for consumers, and ensure that the health care system remains responsive to patient needs.
As affirmed by the records of votes of the members of your Committees on Commerce and Consumer Protection and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2804, S.D. 1, and recommend that it pass Third Reading.
Respectfully submitted on behalf of the members of the Committees on Commerce and Consumer Protection and Judiciary,
|
________________________________ KARL RHOADS, Chair |
|
________________________________ JARRETT KEOHOKALOLE, Chair |
|
|
|
|
STAND. COM. REP. NO. 2346
Honolulu, Hawaii
RE: S.B. No. 2804
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. 2804 entitled:
"A BILL FOR AN ACT RELATING TO COMMERCE,"
begs leave to report as follows:
The purpose and intent of this measure is to prohibit acquiring and holding stocks and other interests if the acquisition and holding lessens access to health care or increases insurance rates.
Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs and Hawaii Medical Service Association.
Your Committee finds that access to affordable health care is essential to the health, safety, and welfare of the residents of the State. Your Committee further finds that consolidation and certain acquisition practices within the health care and health insurance markets may reduce competition, limit consumer choice, increase insurance premiums, and restrict access to medically necessary services. This measure provides safeguards to preserve competition, protect consumers from excessive premium increases, and ensure that the health care system remains responsive to patient needs rather than purely financial considerations.
Your Committee has amended this measure by inserting an effective date of January 30, 2050, to encourage further discussion.
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. 2804, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2804, S.D. 1, and be referred to your Committees on Commerce and Consumer Protection and Judiciary.
Respectfully submitted on behalf of the members of the Committee on Health and Human Services,
|
|
|
________________________________ JOY A. SAN BUENAVENTURA, Chair |
|
|
|
|
|
Date
|
Testimony PDF
|
|---|---|
| Apr 7, 2026 | SB2804_HD1_TESTIMONY_CPC_04-07-26_.PDF |
| Mar 20, 2026 | SB2804_SD1_TESTIMONY_HLT_03-20-26_.PDF |
| Mar 4, 2026 | SB2804_SD1_TESTIMONY_CPN-JDC_03-04-26_.PDF |
| Feb 13, 2026 | SB2804_TESTIMONY_HHS_02-13-26_.PDF |
Discussed in Hearing
1MIN
Conference Committee
3MIN
House Standing Committee on Consumer Protection & Commerce
1MIN
House Standing Committee on Consumer Protection & Commerce
7MIN
House Standing Committee on Health
1MIN
House Standing Committee on Health
56SEC
Senate Standing Committee on Commerce and Consumer Protection
56SEC
Senate Standing Committee on Judiciary
4MIN
Senate Standing Committee on Health and Human Services
Bill Author
