STAND. COM. REP. NO. 1401-22

Honolulu, Hawaii

, 2022

RE: S.B. No. 3140

S.D. 1

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 3140, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE UNIFORM CONTROLLED SUBSTANCES ACT MANDATORY REPORTING,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Require the holder of a controlled substances registration to immediately and verbally report to the Administrator of the Narcotics Enforcement Division of the Department of Public Safety any suspected theft, embezzlement, fraud, or diversion of a controlled substance in the holder's inventory, and to subsequently submit a written report; and

(2) Establish a misdemeanor penalty for a person who knowingly prevents another from reporting any suspected theft, embezzlement, fraud, or diversion, or who knowingly fails to provide required information to the Administrator.

Your Committee received testimony in support of this measure from the Department of Public Safety.

Your Committee finds that the mandatory reporting requirement in this measure is critical for the timely investigation of the theft, embezzlement, fraud, or diversion of controlled substances in a registrant's inventory. If incidences are not reported in a timely manner and investigated completely, then the suspects involved may illegally use or distribute the controlled substances that were stolen or diverted. This measure will therefore have a positive effect on investigations, monitoring and management of controlled substances, and controlled substance compliance controls.

Your Committee has amended this measure by:

(1) Changing the effective date to January 1, 2050, to encourage further discussion; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3140, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3140, S.D. 1, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

AARON LING JOHANSON, Chair