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. 31 entitled:

beg leave to report as follows:

The purpose of this bill is to require manufacturers of prescription drugs to provide quarterly reports that disclose the average wholesale price, wholesale acquisition cost, average manufacturer price, and best price of prescription drugs dispensed in the state.

Testimony in support of this bill was submitted by AARP Hawaii and ILWU Local 142. Testimony in opposition was submitted by the Pharmaceutical Research and Manufacturers of America.

Your Committees find that the State may be in a position to use the information in the quarterly reports required by this bill to better negotiate and achieve discounts for state prescription drug programs. However, your Committees note that concerns were raised that the bill may require disclosure of proprietary information that may potentially place the company at a competitive disadvantage.

Accordingly, your Committees have amended this bill by providing a defective date of July 1, 2099, to facilitate further discussion. Technical, nonsubstantive amendments were also made for purposes of clarity, consistency, and style.

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. 31, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 31, H.D. 1, and be referred to the Committee on Judiciary.