Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred S.B. No. 1100, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to authorize and regulate the sale and distribution of over-the-counter pseudoephedrine products by pharmacies.

The Office of the Lieutenant Governor, Department of Public Safety, Hawaii Pharmacists Association, Longs Drug Stores, and an individual testified in support of this measure. The Honolulu Police Department, Foodland, Hawaii Food Industry Association, Community Alliance on Prison, and Legislative Information Services of Hawaii opposed the measure. Safeway, Inc., presented comments.

Your Committee finds that crystal methamphetamine or "ice" is the most abused drug in the State and its illegal use is at the root of many of the State's societal problems, including violent crime, child abuse and neglect, and property theft.

Your Committee further finds that methamphetamine can be manufactured using common household items, which has led to the proliferation of clandestine methamphetamine "labs" throughout the State, typically located in kitchens, garages, and hotel rooms. In addition to endangering the public through the production and introduction of illegal drugs into community, these labs pose a further threat to public health and safety due to the risks of fire, explosions, and toxic exposure associated with their operations.

One of the primary precursor chemicals used in the manufacturing of methamphetamine is pseudoephedrine, which is readily available in over-the-counter cold remedies. Currently, operators of drug labs can easily obtain pseudoephedrine to manufacture methamphetamine by purchasing over-the-counter cold and allergy medications in pharmacies and retail establishments.

This measure proposes to regulate the sale of over-the-counter pseudoephedrine products by establishing pseudoephedrine as a Schedule V controlled substance and authorizing the dispensing, sale, or distribution of pseudoephedrine products only by pharmacies, subject to requirements relating to authorized sales personnel, purchase amounts, and recordkeeping. These requirements would not apply to pseudoephedrine products in liquid, liquid capsule, or gel capsule form that contain an active ingredient in addition to pseudoephedrine.

Your Committee has amended this measure:

Your Committee finds that this measure, as amended, addresses the concerns of the retail industry regarding their continuing ability to lawfully offer and sell over-the-counter cold and allergy medications to their customers, while implementing necessary controls over the sale of pseudoephedrine products used in the illegal manufacturing of methamphetamine.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1100, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1100, S.D. 2.