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 and Transportation, Military Affairs, and Government Operations, to which was referred S.R. No. 63 entitled:

beg leave to report as follows:

The purpose of this measure is to urge federal action to permit the importation of prescription drugs from Canada.

The Hawaii Government Employees Association and AARP Hawaii testified in support of this measure.

Your Committees find that many prescription drugs sold in the United States are available at lower prices in Canada, but that federal law prohibits the importation of foreign-made versions of Food and Drug Administration-approved drugs, and the reimportation of drugs, except by drug manufacturers or if authorized by the Secretary of Health and Human Services (Secretary) for emergency medical care.

Your Committees further find that while the recently-enacted Medicare reform law mandates the Secretary to promulgate regulations permitting pharmacists and wholesalers to import prescription drugs from Canada into the United States, and authorizes the Secretary to grant individual waivers of the importation prohibition, the law also requires that the Secretary first certify to the Congress that the regulations will pose no additional risk to the public's health and safety and will result in a significant reduction in the cost of drugs for consumers. Critics of the law charge that the safety certification is the "poison pill" of the drug importation provisions because no Health and Human Services Secretary, including the current Secretary, is likely to commit to guaranteeing the safety of imported drugs.

Your Committees further find that federal legislation has been proposed that would ease the requirements for the importation of prescription drugs from abroad, including from Canada. This measure expresses the Legislature's support for the passage of these measures which would help to provide relief from the high cost of prescription drugs for Hawaii's consumers.

As affirmed by the records of votes of the members of your Committees on Commerce, Consumer Protection and Housing and Health and Transportation, Military Affairs, and Government Operations that are attached to this report, your Committees concur with the intent and purpose of S.R. No. 63 and recommend its adoption.