STAND. COM. REP. NO.  1582-08

Honolulu, Hawaii

                , 2008

RE:   S.B. No. 2882

      S.D. 1

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committees on Consumer Protection & Commerce and Judiciary, to which was referred S.B. No. 2882, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONTROLLED SUBSTANCES,"

beg leave to report as follows:

     The purpose of this bill is to facilitate the provision of prescription medications by authorizing out-of-state mail order pharmacies to use payor-provided identification numbers in dispensing controlled substances.

     AlohaCare, Hawaii Medical Service Association, Express Scripts, Inc., Medco Health Solutions, and WellPoint, Inc., testified in support of this bill.  The Department of Public Safety and Longs Drug Stores opposed this measure.

     Hawaii law requires the use of a patient's government-issued identification number for the dispensing of prescribed controlled substances.  This bill would allow out-of-state mail order pharmacies to instead use unique patient identifiers issued by payors, insurers, or pharmacy benefit managers when dispensing controlled substances.

     However, there are concerns regarding the reliability of these patient identifiers for law enforcement purposes and the uncertain effects this bill may have on Hawaii-based mail order facilities that dispense prescription drugs.

     Accordingly, your Committees have amended this bill by changing its effective date to January 1, 2050, to encourage further discussion.

     As affirmed by the records of votes of the members of your Committees on Consumer Protection & Commerce and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2882, S.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2882, S.D. 1, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committees on Consumer Protection & Commerce and Judiciary,

____________________________ TOMMY WATERS, Chair

____________________________ ROBERT N. HERKES, Chair