STAND. COM. REP. 3190

Honolulu, Hawaii

, 2004

RE: H.B. No. 2005

H.D. 1

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committees on Commerce, Consumer Protection and Housing and Health, to which was referred H.B. No. 2005, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PRESCRIPTION DRUGS,"

beg leave to report as follows:

The purpose of this measure is to make modifications to the Hawaii Rx discounted prescription drug program.

Prior to holding a public hearing on this measure, a proposed S.D. 1 was prepared and made available for public review.

Testimony in support of the proposed S.D. 1 was received from the Department of Health, Department of Human Services, Board of Pharmacy, Kaiser Permanente, American Cancer Society, and Hawaii Long Term Care Association. The Attorney General presented comments on the measure.

Your Committees find that prescription drugs are one of the most costly components of health care today. Under current law, once drugs are dispensed, even in an institutional setting, they may not be used by any one other than the patient for whom the prescription was prescribed, leading to the costly and needless waste of wholesome pharmaceutical products. The proposed S.D. 1 addresses this situation by establishing procedures for the return, credit, and reuse of prescription drugs within institutional facilities, and for the donation of drugs not appropriate for return and reuse to drug repositories for the needy

Your Committees amended this measure by adopting the language of the proposed S.D. 1, as further revised to address the concerns of the Department of Health, Department of Human Services, Office of the Attorney General, and Hawaii Medical Service Association. As amended, this measure:

(1) Establishes return-for-credit-and-reuse procedures for institutional facilities that include requirements relating to the return of drugs to the dispensing pharmacy, recordkeeping, credit and reimbursement, and pharmacy certification;

(2) Authorizes the donation of drugs that meet the standards for donated drugs, but are otherwise not acceptable for return-for-credit-and-reuse, to donated drug repositories for the needy under chapter 328C, Hawaii Revised Statutes (HRS);

(3) Establishes conditions under which a pharmacist may redispense or redistribute prescription drugs previously dispensed or distributed for administration to patients in an institutional facility;

(4) Provides that drug manufacturers are not liable for claims arising out of the return-for-credit-and reuse of drugs, or the donation of drugs to repositories for the needy;

(5) Adds definitions to chapters 328C and 461, HRS;

(6) Repeals duplicative definitions in section 328C-2, HRS;

(7) Requires the Department of Health to report to the 2006 Legislature regarding problems in implementing and operating the prescription drug repository program, the potential for program's expansion to include private donations, and suggested legislation;

(8) Requires the adoption of administrative rules regarding crediting and handling fee processes before return-for-credit-and-reuse procedures may be implemented; and

(9) Is repealed on July 1, 2010.

As affirmed by the records of votes of the members of your Committees on Commerce, Consumer Protection and Housing and Health that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2005, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2005, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committees on Commerce, Consumer Protection and Housing and Health,

____________________________

ROSALYN H. BAKER, Chair

____________________________

RON MENOR, Chair