Report Title:

Over the counter drugs special fund

 

Description:

Creates a special fund to provide supplemental funding for the Hawaii State Primary Care Association Medicine Bank from taxes collected from over-the-counter drug sales.

 

HOUSE OF REPRESENTATIVES

H.B. NO.

858

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to over-the-counter drugs.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§237- Over-the-counter drugs. (a) On or before January 1, 2002, the director shall establish rules and procedures to identify those privilege taxes collected pursuant to section 237-13 from persons engaging in the sale of, nonprescription, over-the-counter, or nonlegend, drugs, as defined in section

328-1.

(b) The director shall deposit the taxes collected, into the over-the-counter drugs special fund.

(c) For purposes of this section, the term "drug" as defined in section 328-1 shall not include over-the-counter nutritional supplements of the type commonly referred to as vitamins."

SECTION 2. Chapter 328, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§328- Over-the-counter drugs special fund. (a) There is created in the State treasury the over-the-counter drugs special fund, into which shall be deposited all general excise taxes collected for over-the-counter, nonprescription, or nonlegend drugs sales in the State collected after July 1, 2002.

(b) The over-the-counter drugs special fund shall be used solely for the purpose of supplemental funding for the Hawaii Primary Care Association's Medicine Bank program.

(c) The comptroller shall determine:

1) The non-profit status of the Hawaii State Primary Care Association;

2) That funds expended under this Act are used solely for public purposes and are not expended for administrative salaries or expenses, and;

3) The supplemental funding needs of the Hawaii State Primary Care Association's Medicine Bank and shall expend funds from the over-the-counter drugs special fund accordingly.

(d) Funds expended shall be used solely for the public purpose of providing medical supplies to the indigent population of Hawaii. No state funds shall be used for administrative salaries or expenses."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2001.

INTRODUCED BY:

_____________________________