STAND.
COM. REP. NO. 507-20
Honolulu, Hawaii
, 2020
RE: H.B. No. 1609
H.D. 2
Honorable Scott K. Saiki
Speaker, House of Representatives
Thirtieth State Legislature
Regular Session of 2020
State of Hawaii
Sir:
Your Committees on Consumer Protection & Commerce and Judiciary, to which was referred H.B. No. 1609, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO PHARMACY BENEFIT MANAGERS,"
beg leave to report as follows:
(1) Establishing business practice and transparency reporting requirements for pharmacy benefit managers;
(2) Replacing the registration requirement for pharmacy benefit managers with a licensing requirement; and
(3) Increasing penalties for violations of the pharmacy benefit managers law.
Your Committees find that this measure is intended to help reduce the cost of prescription drugs for the benefit of Hawaii's people and bring much-needed transparency and accountability to pharmacy benefit managers in the State.
Your Committees have amended this measure by:
(1) Clarifying that a pharmacy benefit manager may designate certain material in a transparency report as confidential and not subject to disclosure under the Uniform Information Practices Act (Modified), rather than designating the material as a trade secret, and permitting any person to appeal a denial of access to this information;
(2) Requiring the Insurance Commissioner to publish transparency reports for each pharmacy benefit manager in a way that does not disclose confidential information, unless a court or the Office of Information Practices determines the information is required to be disclosed;
(3) Clarifying the definition of "pharmacy benefit manager" in the pharmacy benefit manager law;
(4) Specifying that a pharmacy benefit manager license is valid for one year, rather than three years;
(5) Specifying that an application for licensure as a pharmacy benefit manager shall include any other documentation the Insurance Commissioner determines is necessary to ascertain the organization, background expertise, and financial integrity of the applicant;
(6) Clarifying that the Insurance Commissioner's authority to discipline licensees includes the ability to refuse to issue a pharmacy benefit manager's license or impose fines in certain situations; and
(7) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.
As affirmed by the records of votes of the members of your Committees on Consumer Protection & Commerce and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1609, H.D. 1, as amended herein, and recommend that it be referred to your Committee on Finance, in the form attached hereto as H.B. No. 1609, H.D. 2.
Respectfully submitted on behalf of the members of the Committees on Consumer Protection & Commerce and Judiciary,
____________________________ CHRIS LEE, Chair |
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____________________________ ROY M. TAKUMI, Chair |
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