Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1018
                                     S.D. 1
                                     H.D. 1

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Consumer Protection and Commerce, to which
was referred S.B. No. 1018, S.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this bill is to streamline the procedure used
by the Drug Product Selection Board (Board) to add generic drugs
approved by the United States Food and Drug Administration (FDA)
and listed in the FDA Orange Book to the State drug formulary,
which lists safe, effective, and therapeutically equivalent drugs
approved for distribution to consumers by:

     (1)  Permitting the Board to adopt the FDA Orange Book and
          its cumulative supplements as rules; and

     (2)  Removing language requiring the Board to publish and
          distribute a separate formulary.

     The Department of Health (DOH), Hawaii Medical Service
Association, and Longs Drugs submitted testimony supporting this
bill.  Your Committee received written testimony from the
Pharmacy Association of Hawaii (PAH), supporting the intent of
this measure and suggesting several amendments.

     The PAH urged that this measure be amended to require the
formulary be updated at least every six months, resources
permitting, because longer delays would adversely affect the

                                 STAND. COM. REP. NO. 1221
                                 Page 2

availability of generic drugs to consumers whose health and
welfare depends on affordable medications.

     Your Committee finds that this bill will increase the
efficiency and the timeliness of making cost-saving generic drugs
available to the consumer, without compromising existing consumer
safety protections.  Your Committee has made several amendments
to this bill by:

     (1)  Replacing its contents with that of H.B. No. 1136, H.D.
          1, a measure heard earlier in this session by your
          Committee, that contains differences that are technical
          and nonsubstantive;

     (2)  Adopting the amendment requested by the PAH that the
          formulary be updated at least every six months;

     (3)  Revising the definition of "Orange Book" to reflect
          that the Orange Book contains a number of lists,
          including the list of approved drug products; and

     (4)  Making other technical, nonsubstantive amendments for
          purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 1018, S.D. 1, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as S.B. No. 1018, S.D. 1, H.D. 1, and be referred to the
Committee on Finance.

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

                                   RON MENOR, Chair