CONFERENCE COMMITTEE REP. NO. 2

Honolulu, Hawaii

, 2023

RE: S.B. No. 1381

S.D. 1

H.D. 1

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sirs:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 1381, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE REPEAL OF SECTION 328-106, HAWAII REVISED STATUTES,"

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 repeal section 328-106, Hawaii Revised Statutes, which requires the Department of Health to regulate business practices between private entities engaged in the selling, billing, and reimbursement of pharmaceuticals.

Your Committee on Conference finds that section 328-106, Hawaii Revised Statutes, requires the Department of Health to police contractual relationships between pharmacy benefit managers and pharmacies. This regulatory burden is outside the scope of the Department of Health's purview, expertise, and mission to protect public health, and other existing state laws offer more appropriate regulatory frameworks for pharmacy benefit managers. Thus, repealing section 328-106, Hawaii Revised Statutes is appropriate.

Your Committee on Conference has amended this measure by:

(1) Changing the effective date to upon its approval; and

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

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 S.B. No. 1381, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 1381, S.D. 1, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ DELLA AU BELATTI Co-Chair	____________________________ JARRETT KEOHOKALOLE Chair
____________________________ JACKSON D. SAYAMA Co-Chair	____________________________ JOY A. SAN BUENAVENTURA Co-Chair