STAND. COM. REP. NO. 1444
Honolulu, Hawaii
, 2005
RE: H.B. No. 31
H.D. 2
S.D. 2
Honorable Robert Bunda
President of the Senate
Twenty-Third State Legislature
Regular Session of 2005
State of Hawaii
Sir:
Your Committees on Judiciary and Hawaiian Affairs and Ways and Means, to which was referred H.B. No. 31, H.D. 2, S.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 impose various disclosure requirements on pharmaceutical manufacturers and pharmacy benefits managers as a means of increasing transparency and reducing the costs of providing prescription drugs for Hawaii residents.
Specifically, this measure:
(1) Requires pharmaceutical manufacturing companies to disclose to the State Pharmacy Board the value, nature, and purpose of any gift, fee, or payment provided in connection with its marketing activities; and
(2) Increases transparency with respect to pharmacy benefits managers by permitting the disclosure of certain financial information from these entities.
Testimony in support of this measure was submitted by the AARP-Hawaii, ILWU Local 142, and seven individuals. Testimony in opposition to the measure was submitted by the Department of Human Services, the State Board of Pharmacy, the State Insurance Commissioner, Pharmaceutical Research and Manufacturers of America, and Medco Health Solutions, Inc. The Department of the Attorney General and Office of Information Practices offered comments on the measure.
Your Committees find that drug costs continue to increase at a rapid rate annually. This measure seeks to address this issue by requiring the disclosure of certain financial information from drug manufacturers as well as pharmacy benefits managers as a means of increasing transparency with respect to expenditures, costs, fees, and revenues recouped by these entities. Your Committees note the concerns raised by the Attorney General with respect to this measure, but nonetheless believes that this measure is an important first step in addressing the problem of increasing drug costs in this State.
Your Committees have amended this measure by:
(1) Making technical, non-substantive amendments for purposes of clarity, consistency, and style; and
(2) Changing the effective date to July 1, 2050 in order to promote further discussion on this measure.
As affirmed by the records of votes of the members of your Committees on Judiciary and Hawaiian Affairs and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 31, H.D. 2, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as H.B. No. 31, H.D. 2, S.D. 2.
Respectfully submitted on behalf of the members of the Committees on Judiciary and Hawaiian Affairs and Ways and Means,
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____________________________ BRIAN T. TANIGUCHI, Chair |
____________________________ COLLEEN HANABUSA, Chair |
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