STAND. COM. REP. NO.732
Honolulu, Hawaii
, 2001
RE: H.B. No. 411
H.D. 2
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2001
State of Hawaii
Sir:
Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 411, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO PRESCRIPTION DRUGS,"
begs leave to report as follows:
The purpose of this bill is to make prescription drugs more affordable for needy persons by:
(1) Establishing a tax credit for pharmacists and pharmaceutical companies who donate pharmaceuticals and health care supplies for use by needy persons;
(2) Restricting prescription drug prices for individuals without health insurance to prices in the federal medical supply schedule; and
(3) Extending the good samaritan law to provide pharmacists, who donate pharmaceuticals and health care supplies to needy persons, with protection from civil liability for resultant injuries and damages.
Your Committee received testimony in support of this measure from the Hawaii State Primary Care Association. The Executive Office on Aging supported the intent of the bill. Hawaii Pharmacists Association supported the intent of the bill and opposed the restriction on prescription drug prices. Comments were received from the Department of Human Services and Tax Foundation of Hawaii. The Department of Taxation and Pharmaceutical Research and Manufacturers of America opposed the bill.
Your Committee finds that concerns were raised about the advisability of using tax credits and price restrictions to increase the availability of pharmaceutical drugs and health care supplies to the needy. Among the comments were that tax credits are an inefficient and inappropriate method of providing relief to those in need. Concerns were also raised regarding the constitutionality of restricting the price of drugs, as well as the effect of these price restrictions on the cost and availability of drugs and health care services to the general public.
Upon consideration, your Committee has amended this measure by:
(1) Removing the tax credit and price restriction provisions;
(2) Extending the protection from liability provided to pharmacists who donate pharmaceuticals and medical supplies, to include wholesale prescription drug distributors, pharmaceutical companies, and physicians; and
(3) Making technical, nonsubstantive amendments for purposes of clarity, consistency, and style.
Your Committee finds that as amended, this measure will make it more attractive and less risky for pharmacies and wholesalers to donate pharmaceuticals and medical supplies to the Medicine Bank, which collects and distributes them to the uninsured patients of community health centers.
As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 411, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 411, H.D. 2.
Respectfully submitted on behalf of the members of the Committee on Consumer Protection and Commerce,
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____________________________ KENNETH T. HIRAKI, Chair |
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