STAND. COM. REP. NO. 1714

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1018
                                     S.D. 1
                                     H.D. 2




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No.
1018, S.D. 1, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO THE DRUG FORMULARY,"

begs leave to report as follows:

     The purpose of this bill is to streamline the procedure used
by the Drug Product Selection Board (Board) to add generic drugs
approved by the United States Food and Drug Administration (FDA)
and listed in the FDA Orange Book to the State drug formulary,
which lists safe, effective, and therapeutically equivalent drugs
approved for distribution to consumers by:

     (1)  Permitting the Board to adopt the FDA Orange Book and
          its cumulative supplements as rules;

     (2)  Removing language requiring the Board to publish and
          distribute a separate formulary;

     (3)  Requiring the formulary to be updated at least every
          six months; and

     (4)  Adding definitions of "Hawaii additions and deletions
          list" and "Orange Book."

     The Department of Health, the Hawaii Medical Service
Association, Times SuperMarket Pharmacies, the Pharmacy

 
 
 
                                 STAND. COM. REP. NO. 1714
                                 Page 2

 
Association of Hawaii, and Longs Drug Stores testified in support
of this bill.

     Your Committee has amended this bill by making technical,
nonsubstantive changes for style and clarity.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
1018, S.D. 1, H.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as S.B. No. 1018,
S.D. 1, H.D. 2.

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair