Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Consumer Protection and Commerce, Health, and Human Services, to which was referred H.B. No. 30 entitled:

beg leave to report as follows:

The purpose of this bill is to authorize the Director of Human Services to access the federal supply schedule to use as a benchmark in negotiating prices for brand name prescription drugs for state programs.

Your Committees received testimony in support of this bill from AARP Hawaii, ILWU Local 142, and a concerned private citizen. The Department of Human Services (DHS) supported the intent of this bill. Testimony in opposition to this bill was received from the Pharmaceutical Research and Manufacturers of America.

Your Committees find that this bill may help to secure the best possible prices for prescription drugs for Hawaii's indigent and uninsured population by giving DHS another tool to use when it negotiates the purchase of prescription drugs with pharmaceutical companies for state administered programs. However, it was unclear as to whether DHS is currently permitted to refer to the federal supply schedule, possibly making this bill unnecessary. Unfortunately, DHS was not present at the hearing to answer this query.

In light of this concern, your Committees have amended this bill by providing a defective date of July 1, 2099, in the interest of facilitating further discussion.

As affirmed by the records of votes of the members of your Committees on Consumer Protection and Commerce, Health, and Human Services that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 30, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 30, H.D. 1, and be referred to the Committee on Finance.