STAND. COM. REP. NO. 3189

Honolulu, Hawaii

RE: H.B. No. 1643

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Health and Human Services, to which was referred H.B. No. 1643, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO PHARMACY,"

begs leave to report as follows:

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

Your Committee received testimony in support of this measure from the Hawaii Pharmacists Association; Molokaʻi Drugs, Inc.; and six individuals.

Your Committee received comments on this measure from the Board of Pharmacy, Kaiser Permanente Hawaiʻi, Hawaii Medical Service Association, and Pharmaceutical Care Management Association.

Your Committee finds that independent pharmacies across the State report inconsistent and burdensome auditing and recordkeeping procedures for pharmacy claims that can vary significantly depending on the payor and the pharmacy benefit manager administering the claims and the audit practices applied on their behalf. Your Committee further finds that these variations can create logistical and administrative challenges for independent pharmacies and can often result in financial penalties. This measure would establish sensible audit guardrails that balance consistency for pharmacy operations with appropriate oversight and consumer protections.

Your Committee has amended this measure by:

(1) Inserting language to amend the definition of "pharmacy benefit manager" under section 431S-1, Hawaii Revised Statutes, to exclude certain health maintenance organizations; and

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

As affirmed by the record of votes of the members of your Committee on Health and Human Services that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1643, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1643, H.D. 2, S.D. 1, and be referred to your Committee on Commerce and Consumer Protection.

Respectfully submitted on behalf of the members of the Committee on Health and Human Services,

________________________________

JOY A. SAN BUENAVENTURA, Chair