STAND. COM. REP. NO. 1066-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1643

H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1643, H.D. 1, 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 on records of pharmacists and pharmacies.

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

Your Committee finds that pharmacies across the State face inconsistent, burdensome, and disruptive audit practices that vary widely in notice timelines, documentation expectations, and the scope of permissible recoupments. These inconsistent standards can strain pharmacy operations, divert staff resources away from patient care, and create uncertainty in how audits are initiated, conducted, and resolved. This measure seeks to ensure that oversight activities remain effective while safeguarding patient safety and ensuring continuity of care during audit proceedings.

Your Committee has amended this measure by:

(1) Requiring audit requests to be made in writing and include a requirement that the registered pharmacist or pharmacy provide a signature acknowledging receipt of the audit notice;

(2) Specifying that recoupment of claims shall only be applied to prescriptions disclosed in the audit and cannot be applied to other prescriptions;

(3) Authorizing a registered pharmacist or pharmacy to reverse or rebill prescriptions due to clerical changes during the correction time frame of the audit;

(4) Prohibiting auditors from entering the prescription department, rather than authorizing auditors to enter when accompanied or authorized by a member of the pharmacy staff;

(5) Exempting the Department of Health from the requirements of this measure; and

(6) 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 H.B. No. 1643, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1643, H.D. 2.

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

____________________________

SCOT Z. MATAYOSHI, Chair