CONFERENCE COMMITTEE REP. NO. 38

Honolulu, Hawaii

                 , 2017

RE:    H.B. No. 1444

       H.D. 2

       S.D. 2

       C.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sirs:

     Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 1444, H.D. 2, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO PHARMACY BENEFIT MANAGERS,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this measure is to require pharmacy benefit managers to register with the Insurance Commissioner as a first step toward regulating the pharmacy benefit management industry so as to provide transparency and ensure adequate consumer protection for purchasers and consumers of prescription drugs in the State. 

     Your Committee on Conference has amended this measure by:

     (1)  Clarifying that health maintenance organizations that own or manage their own pharmacies are not required to register as pharmacy benefit managers; and

     (2)  Changing its effective date to July 1, 2017.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 1444, H.D. 2, S.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 1444, H.D. 2, S.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ ROSALYN H. BAKER Chair	____________________________ DELLA AU BELATTI Co-Chair
____________________________ BRIAN T. TANIGUCHI Co-Chair	____________________________ ROY M. TAKUMI Co-Chair
	____________________________ BERTRAND KOBAYASHI Co-Chair