HOUSE OF REPRESENTATIVES	H.B. NO.	32
TWENTY-SIXTH LEGISLATURE, 2011
STATE OF HAWAII

A BILL FOR AN ACT

relating to prescription drugs.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 481-6, Hawaii Revised Statutes, is amended to read as follows:

     "§481-6  When sale at less than cost permitted.  Sections 481-3 to 481-5 shall not apply to any sale made:

     (1)  In closing out in good faith the owner's stock or any part thereof for the purpose of discontinuing the owner's trade in any such stock or commodity, and in the case of the sale of seasonal goods, or to the bona fide sale of perishable goods to prevent loss to the vendor by spoilage or depreciation, provided notice is given to the public thereof;

     (2)  When the goods are damaged or deteriorated in quality, and notice is given to the public thereof;

     (3)  By an officer acting under the orders of any court;

     (4)  In an endeavor made in good faith to meet the lawful prices of a competitor, as herein defined, selling the same article or product, or service or output of a service trade, in the same locality or trade area;

     (5)  By the government or any agency thereof, of the United States, the State, or any county, or by post exchanges or ships' service stores operating under and in accordance with United States army or naval regulations[.]; or

(6) Of generic prescription drugs.

     In case of any sale at less than cost which does not fall within (1) to [(5)] (6) of this section, the burden of proof shall be on the defendant to show that the sale was not made for the purpose of injuring competitors and destroying competition within the meaning of this part.

     Any person, firm, or corporation who performs work upon, renovates, alters, or improves any personal property belonging to another person, firm, or corporation, shall be construed to be a vendor within the meaning of this part."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon its approval.

INTRODUCED BY:

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Report Title:

Prescription Drugs; Sale Below Cost

Description:

Permits the sale of generic prescription drugs at below cost, provided that it is not done with the intent to destroy competition.

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