STAND. COM. REP. NO. 347-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1643

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Health, to which was referred H.B. No. 1643 entitled:

"A BILL FOR AN ACT RELATING TO PHARMACY,"

begs leave to report as follows:

The purpose of this measure is to establish a framework for the administration of audits of records of pharmacists and pharmacies.

Your Committee received testimony in support of this measure from Mauliola Pharmacy; Molokaʻi Drugs, Inc.; Hawaiʻi Pharmacists Association; and eight individuals. Your Committee received comments on this measure from the Department of Health; Board of Pharmacy; and Hawaii Medical Service Association.

Your Committee finds that pharmacy audits are often burdensome and disruptive and can harm patient care. Your Committee further finds that several states have recognized the importance of transparent and fair audit standards to ensure the audits serve the intended purpose of protecting program integrity without unnecessarily disrupting pharmacy operations. This measure seeks to establish a transparent, standardized framework for pharmacy audits in the State.

Your Committee has amended this measure by:

(1) Requiring the written notice for the audit be electronic and include the prescription number and date of fill;

(2) Allowing pharmacists and pharmacies sixty days to respond to a preliminary audit report, rather than thirty days;

(3) Permitting audits to take place in an area other than the pharmacy's prescription department if the area complies with the requirements of the federal Health Insurance Portability and Accountability Act of 1996;

(4) Changing the effective date to July 1, 3000, to encourage further discussion; and

(5) 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 Health that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1643, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1643, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Health,

____________________________

GREGG TAKAYAMA, Chair