Senate Standing Committee on Commerce and Consumer Protection

Good morning and welcome to the Hawaii State Senate Committee on Commerce and Consumer Protection. This is Tuesday, 04/07/2026 in Conference Room 229. We have multiple agendas here as it is a deadline week. The first is a regular committee hearing agenda where we will take testimony on House Bill 1481 House Draft Two relating to human remains.

This measure requires any cemetery, crematory, funeral establishment, hydrolysis facility, or mortuary to dispose of the remains of a dead human body no later than sixty days from the latter of either the date a burial transit permit has been issued or the date of an affidavit for amendment of the permit has been submitted.

First up, we have the Hawaii Funeral and Cemetery Association. Mr. Morford in support online. Good morning.

Good morning, Chair, Vice Chair, Committee. Again, my name is Jay Morford. I'm president of the Hawaii Funeral and Cemetery Association. We stand on our testimony of support, and I'm here to answer any questions that may be asked. Thank you.

Thank you. We also have written testimony in support from Hawaii Memorial Life Plan. Mitchell Dodo of Dodo Mortuary. Ricky Aoki of Po Soy Garden Mortuary, both in support. Johnny May Perry with comments and Aidan Buffington in support.

Is there anyone else who would like to testify on this measure? Okay. Any questions for mister Morford? Vice chair.

Good morning, mister Morford.

Sure. Good morning, Vice Chair.

Good morning. I wanted to get an update, you know, on some of the, actions that the, Association had said it would be undertaking. I believe last year when we had legislation pending regarding the, disposition of metal implants, you know, that potentially could be recycled from, decedent's bodies. The rep the representation from the association was that you were gonna be taking it up last fall and coming back with recommendations. What were you know, what was the upshot of that set of discussions?

We implemented consistent language in our cremation authorization forms. I think that was one of the concerns that you had, Senator Fukunaga, was the consistency in language, and we did implement that language. I have a list of all the funeral homes that signed off on that that I can provide to you. I don't have it with me currently, but I can get that to you.

But we do have consistent language now, and that language will be in the document that I send to you so you can see it.

Okay. Would that be, in terms of consistent language, all of the, mortuaries would be adopting language that would would involve notice and consent on the family's parts, you know, if any, metal implants are gonna be recycled?

Yes. That's in the cremation authorization form, and we implemented that January 1.

Okay. Thank you very much.

You're welcome. Members, any other questions? Okay. Seeing none, we will defer decision making on this measure until the end of the agenda since we just lost Senator McKelvey, and we'll take a recess. K.

Good morning and welcome. This is our, this is the Hawaii State Senate Committee on Commerce and Consumer Protection. This is our 09:15AM, Tuesday, 04/07/2026 resolution hearing. We will be taking testimony on the following resolutions, Senate Concurrent Resolutions and SRs. The first is SR 96, SR 91 requesting the Public Utilities Commission to provide a written status update on the implementation of the Hawaii Electric Reliability Administrator.

First up, we have Johnny Tomura, chair of the PUC with comments.

Chair, vice chair, members of the committee. We send out written testimony. Do you have any questions? No.

Thank you very much. We also have written comments from Johnny Mae Perry. Members, that's all the testimony we've received. Is there anyone else who would like to testify? Okay.

Okay, members, any questions for the PC? Okay. If not, we'll move on to the next resolution. SCR 172, SR 163, requesting the public utilities commission to conduct a comprehensive analysis on the best paths to maximize cost reduction, and minimize financial risk to Hawaii residents, while meeting state goals.

First up, we have Michelangelo, Executive Director of the DCCA Division of Consumer Advocacy, with comments. Good morning.

Vice Chair, members speaking for DCA. We'll send in our written testimony. I'll be able to answer questions.

Thank you. Next, we have the PUC with comments.

Chair, Vice chair, members of the committee. Strongly in support. No further questions.

Thank you. Mark Glick, chief energy officer, Hawaii State Energy Office.

Chair, Vice Chair, members of the committee. Mark Glick on behalf of the Hawaii State Energy Office. We stand on the testimony of the comments. Happy to answer any questions.

Thank you very much. We also have late testimony from Harley Broyles of Earthjustice in support and Johnnie-Mae Perry in opposition. Is there anyone else who would like to testify? Members, questions.

Quick question.

Senator McKelvey.

Just a clarification.. Are you guys comments or in support?

Sorry. Thank you for asking.

The question is for who?

For the PUC, Public Utilities Commission. Yeah.

Apologies, yeah. I did state in support and was for comments, actually.

So it's not support? It's just with comments

. With comments.

Okay. Well, a little disappointing to hear that reducing the cost on our citizens wouldn't garner support, but rather comments. Thanks, chair.

Okay. Thank you.

I believe it was the intent.

I believe it was supporting the intent.

The intent, yeah.

That's what the confusion was.

I think we're good, we're good.

I was like, wait, wait. I'm looking for some small wins here. Okay. So thanks for that clarification.

Casual Senate nuance there. Okay. If there are no other questions, then we'll move on to the next set of resolutions. SCR 109, SR 102, requesting the Department of Commerce and Consumer Affairs to evaluate oh, I'm sorry. Urging the insurance commissioner to study the potential benefits of expanding the use of mail order pharmacy in the state.

First up, Scott Psyche, DCCA Insurance Division in support.

Good morning, chair vice chair. Maybe Justin Chu, the insurance division. We stand on our written testimony in support with comments.

Thank you. Walden Au, HMSA in support. Good morning.

Good morning. Chair Keohokalole, vice chair Fukunaga, members of the committee. Walden Au, on behalf of HMSA. We really appreciate the introduction of this resolution and appreciate that the insurance commissioner would be open to taking on this study. We are seeing just across the board, our members are struggling with health care costs and other things.

Two of the measures that were introduced this year, we're looking to explore maybe increasing the ability for choice in the mail order space, but not neither of them seem to be mandates from what we understand. Both sides, we appreciate that the dialogue is happening and continuing to happen. But we do feel that, study done by a state agency could be a best path forward, whether for or against mail order pharmacy expansion as we go into next session. Thank you for the time to testify.

Thank you very much. Corey Sanders, executive director of Hawaii Pharmacists Association in opposition. Good morning.

Good morning. Chair, vice chair, members of the committee, Corey Sanders, executive director of the Hawaii Pharmacists Association. Appreciate the ability to want to gather data from a state agency and from the insurance commissioner's office for wanting to take this on. I do have some pretty significant concerns about their ability to really study patient outcomes in the downstream effects of mail order pharmacy. Are they going to be able to look at clinical outcomes?

Does mail order pharmacy actually mean better medication adherence rates and better chronic disease state management? When we look at pharmacy lines of business in general, what does mail order pharmacy mean for pharmacy lines of business? If pharmacies are gonna close, we're gonna lose vaccine access for a lot of patients in these remote communities and a really significant touch point where the community pharmacy is often the only point of contact for some of these patients in a twenty four seven manner.

So I love the intent of the bill. I'm really worried about how do we measure some of these patient outcome measures and what does that mean if community pharmacies do close because we are shifting a bulk of medications to mail order, and ultimately what does mail order mean for patient outcomes.

So I'll stand by for any questions that you all may have.

Thank you very much.

Hawaii Association of Health Plans, Rachel Wilkinson in support.

Morning, chair vice chair members of the committee. Rachel Wilkinson on behalf of the Voice Association of Health Plans, and we stand on our written testimony in support.

Thank you very much.

Walgreens company with comments online.

Not present on Zoom, chair.

Thank you. Molokai Drugs Incorporated in opposition online?

Not present on Zoom, chair.

Okay. And we have written testimony from Kelly Goh, also of Molokai Drugs, and Joel Kurzman of the National Community Pharmacists Association in opposition. Anyone else who would like to testify on these rezos? Members, questions? We'll go vice chair?

No. Vice chair first.

I guess for Hawaii Pharmacists Association. If the resolution were amended to incorporate some of the areas you identified in your, testimony to, you

know, to evaluate a broader, set of impacts That could result from mail order type of activity, would, your organization be interested or supportive of incorporating those types of amendments?

Sure. I think that needs to be necessary if something like this is going to to pass through. We would certainly be in support of that. My question would then go to the insurance commissioner's office. They don't have any clinical staff on board.

So I would wonder even with the fiscal appropriations, how do they plan to really measure those outcomes and keep a clinical perspective on the entire study in general? But yes, if those were brought in. Thank you for the question.

Senator McKelvey?

Yeah. Insurance commissioner.

Have you answered the question that was just asked by them?

Sure. Sure. Our testimony acknowledges the fact that we don't have expertise in all of the areas requested. And so we would work with we would request that the Concurrent Resolution be amended to include a request that the other state agencies that do have this expertise, comply with our request for information and data, Department of Health, IEMA, or whatever other agency that might have this information.

Comply? I mean, they they haven't been asked yet.

Right. So our what's your we we just said they yeah. Right. That they that they respond to our request for data.

Well, they haven't asked them yet.

But We we we will. We will.

I I'm just a little concerned that you're having a full throated support of this, and yet I don't see this full throated support on trying to address these huge property and other insurance issues in the state. This is something that's been going back and forth for a while. It's not novel. And so I just questioned the in the hierarchy of needs where this really stands. Thank you, chair.

Sure.

Go ahead. Tell me.

Yeah. For you. And maybe for the pharmacy association. I wanted to know so there already are I guess was it mail mail order pharmacies in the state. Correct?

And one of them is CVS. So if you want to come to I just wanna know, like, you have because for the pharmacist association, you folks have members you have members that are working there. Correct? And can you come up to the

Oh, sorry.

Can we share a microphone? Yeah.

You should.

You can share.

I wanted to know, like, how long have they been working there?

I don't know that answer off the top of my head. I'm happy to figure out how long CVS Caremark's been in business with mail order.

And I know CVS didn't testify, but I wanted to know, like, how many patients they are serving across the state and the success. Because they they have, when you call in right after the the call or your experience with them, they have, like, a survey. And I wonder if, like, quality quality assurance types of things, like the survey after these types of experiences, either online or over the phone can also be included in the study as far as understanding quality assurance.

But what I'm trying to figure out is why the introducer from a rural place would want to introduce this, but maybe there is a need for her community for this. That's why.

Right? And that's why I'm trying to understand. I don't know if any of you can if you have any insight to or speaking with the introducer regarding this.

I can't speak for a Senator. No.

Or, your experiences in rural places.

Well, I can make another point that a lot of times when mail order pharmacy models are implemented in states like ours that have geographic barriers between islands or our patients are getting a majority of their medications sent to a PO box, not directly to their home. Our independent pharmacies are filling those prescriptions on their own dime when a patient comes to them and says my insulin's been out of range for three days because the p the the mailbox was closed or the, post office was closed.

So there's so many intangibles from the pharmacy perspective even if the these bigger associations are complying with data collections. I mean, I think we need to include the pharmacies in those too because those are just huge losses to them because they're just doing what's best for their patients and eating the cost so that they have medications on hand. Something else to your point, Senator, about the surveys.

I mean, getting an a new injectable medication or a new inhaler through the mail is very different than having a pharmacist show you how to use it or counsel. Or if you have medications and prescribers that are prescribing a bulk of medications, but they don't know the overall patient profile of the medication because they can't see all the meds they're picking up from the pharmacy, That's normally a point where the pharmacist will say, you're on two of this certain class of medications. Let's streamline you down.

There's just there's so many intangibles from the community pharmacy perspective that are really hard to measure even if there is, some of these clinical outcomes built into the bill too. But from a rural health perspective, those are the two things that come to mind.

So for the insurance commissioner, are you you folks this is the intent that's the intent of this rezo and to explore all of that. Correct? I understand that.

Sure. I mean, we didn't introduce the reso.

I know.

But yeah. Do you do you feel like that would be

Yeah. Yeah. And I don't wanna speak for Senator, but my understanding was the underlying bill was intended to produce some kind of cost savings benefit for people in rural areas to use network.

Okay.

And then this this reso is designed to study whether or not that allegation or assertion is true. Right? And on the underlying bill, we do not take a position on the measure. You know, that's not something we're we we have the authority already to to enforce the measure, and it was repealing certain certain authority that we did have. So we didn't comment on the underlying measure.

I see.

And, you know, we'd we'd be willing to study whatever the legislature's intent is.

Okay. Thank you so much.

Any other questions, members? Okay. If not, we'll move on. Thank you very much.

The last set of resolutions on, this 09:15AM agenda are SCR 193, SR 182 requesting the Department of Commerce and Consumer Affairs to evaluate registration reporting and transparency mechanisms for trust formed under Chapter five five four g, Hawaii revised statutes and other large private trusts. There was no testimony submitted on these resolutions. So we will, take a recess. Okay. We're convening this joint committee hearing agenda for decision making, between the committees on commerce and consumer protection, and the Senate Committee on the judiciary.

This is 09:30am, Tuesday, 04/07/2026. Regarding House Bill seventeen eighty two, House draft three s Senate draft one, which was heard previously by these joint committees last week. Members, you have all been provided paper copies of the proposed amendments. There are a number of them, but primarily, the amendments are our attempts to clarify and clean up some of the ambiguities in the terminology in the legislation. This was done in conjunction with the attorney general's office.

So the recommendation is to move this measure out and to try and maintain the scope and and, you know, purpose of the underlying legislation, but also just to make some clarifications to the terms so that this bill does not trigger litigation immediately after its passage. Any discussion members?

Is there a fair date on this?

Yeah. There is a defective date on the resolution. Okay. Cool.

Thanks, chair.

Okay. Okay. If there are no comments or or questions and the recommendation is to pass with amendments, chair votes aye.

Thank Thank you. Vice chair also votes aye. Senator Lamasao? Aye. Senator McKelvey?

Yes. Senator Awa is excused. Your recommendation is adopted.

Okay. Chair's recommendation on HB 1782 is identical for JDC members. Any questions or concerns? If not, Senator Gabbard.

Senator Chang. Aye. Senator O'Rourke. Aye. Vice Chair Woodside.

Senator Chang. Aye. Senator San Buenaventura. Aye. Senator O'Rourke.

Excused. The measure is adopted.

Thank you very much, We're adjourned.

Okay. Reconvening this Tuesday, 04/07/2026, 09:15AM, CPN agenda in Conference Room 229, to make decisions on the following resolutions submitted for consideration to the committee. The first is Senate Concurrent Resolution 96 and and Senate Resolution 91. The recommendation on the recommendation here is to pass with amendments adopting the public utilities commissions recommended amendment. Any discussion members?

Okay, if not, the recommendation on both resolutions is to pass with amendments, Chair votes aye.

Thank you, Vice Chair also votes aye. Of the remaining members, are there any voting with reservations, objections? Hearing none, your recommendation is adopted.

Thank you very much. The next set of resolutions are SCR 172 and SR 163. And the recommendation is to pass these resolutions out with amendments. We will remove the eighth whereas clause to address the Hawaii Energy Office's complaint that that clause was a complaint. Any discussion members?

Okay. Seeing none, passing with amendments, chair votes aye.

Thank you. Of the members present, any voting with reservations, objections? During none, your recommendation is adopted.

Thank you very much. The next set of resolutions are SCR109 and SR102. This is regarding mail order pharmacy. Appreciate the discussion. Members, the recommendation is to pass with amendments, adopting the insurance division's request to add language, requesting cooperation from state and county agencies, and including an evaluation on the impact of community pharmacy, on the impact of the program on community pharmacy sustainability and rural access.

Any questions or comments members? Senator McKinsey.

I was gonna go a hard no on this, but thanks to your amendments and taking account the concerns of the pharmacist, which is important from a rural area, I'm gonna go straight up on the resume.

Thank you very much.

Okay. If there's nothing else, then the recommendation is to pass with amendments. Chair votes aye.

Thank you. Of the members present, any voting with reservations, objections? Hearing none, your recommendation is adopted.

Thank you. The last set of resolutions are SCR 193 and SR 182. Because there was no testimony submitted on these resolutions, the recommendation is to defer.

We're adjourned.

Hey. Convening this Tuesday, 04/07/2026, 09:25AM agenda in Conference Room 229 to consider a number of bills in the commerce and consumer protection committee that were heard by the previous subject matter committee. We've taken written testimony on these measures and we'll be making recommendations. The first is the first measure on this agenda is House bill 350 House draft 2 relating to Energy. After reviewing the testimony, it seems we're far apart and this bill needs more work, so the recommendation is to defer.

The next measure is House Bill 1514 House draft two Senate draft one relating to workers compensation. The recommendation on this measure is to pass unamended. Members, any discussion? Seeing none, passing unamended, chair votes aye.

Thank you. Of the members present, any voting with reservations, objections? Hearing none, your recommendation is adopted.

Thank you very much. The next measure is House Bill 1619 House Draft Two relating to electric vehicle infrastructure. The recommendation on this measure is to pass with a defective effective date of 07/01/2050. Members any discussion? Seeing none passing with amendments, Chair votes aye.

Thank you. Of the Members present, any voting with reservations, objections? Hearing none, your recommendation is adopted.

Thank you. The next measure is House Bill 1643 House draft two Senate draft one relating to pharmacy. The recommendation on this measure is to pass with amendments, adopting the proposed amendments submitted by PCMA, the pharmaceutical care management association, and HMSA. And there are also technical and non substantive amendments, and there's already a defective effective date on the measure. Members, any questions or comments?

Okay. So noted. If there are no others, then the recommendation again is to pass with amendments. Chair votes aye.

Thank you. Of the members present, are there any voting with reservations or with the changes?

No, there are.

Okay. Thank you, Senator McKelvey. All others in the affirmative, your recommendation is adopted.

Thank you very much.

Next measure is HB 1721 House Draft 2, Senate Draft 1 relating to Housing. The recommendation is to pass with technical non substantive amendments. Any discussion? Okay. Seeing none, passing with amendments.

Chair votes aye.

Thank you. Have the members present? Any voting with reservations? Objections? Hearing none, your recommendation is adopted.

Thank you. Next measure is House Bill 1864, House Draft 2, Senate Draft 1, relating to Insurance. The recommendation on this measure is to pass with technical amendments. Any discussion? Okay.

Seeing none, passing with amendments, chair votes aye.

Thank you. Of the members present, any voting with reservations? Objections? Hearing none, your recommendation is adopted.

Thank you very much.

The next measure on this agenda is House bill 1946, House draft two, Senate draft one relating to registration of timeshares. The recommendation on this measure is to pass with amendments adopting the ARDA proposed effective date, which is 09/01/2026. I think this bill's ready to go. So we'll make it effective 09/01/2026. Any comments or concerns, members?

Questions? No. Okay. Passing with amendments, chair votes aye.

Thank you. Of the members present, any voting with reservations? Objections? Hearing none, your recommendation is adopted.

Okay. Thank you very much.

And the last measure on this agenda is House bill 2475, House draft 1 relating to Labeling requirements. This is the Okolehao bill. And the recommendation is to pass with amendments adopting the proposed comments from Kamehameha School's requiring that be made with 100% locally grown key root. Any discussion members? Okay.

Seeing none, passing with amendments, chair votes aye.

Thank you. Of the members present, anybody with reservations, objections? Hearing none, your recommendation is adopted.

Thank you. We're adjourned. Convening this Tuesday, 04/07/2026, 09:32am, committee agenda in Conference Room 229 at the Hawaii State Capitol. The recommendation that this is to reconsider a previous decision on House Bill 2101, House Draft One, Senate Draft One, relating to commercial aquarium collection. The recommendation on this measure is to reconsider the previous action and pass the measure out unamended.

Any comments or questions, Members? Chair. Senator McKelvey.

If I may, I just have a brief minute here. I wanna explain that the last time this bill came up before the committee, I did not support it because I felt it was unfair to the people of the Big Island who worked long and hard on this to have it removed.

However, after your hearing, the people from the Big Island who've been working on this contacted my office, explained that while they understand and appreciate their concerns, they'd like to continue to still see this moving to establish something in law. So, however, I think even with Maui County, even though it's a county ordinance, enforcement has been spotty and difficult.

And I think without a statewide ban, considering the role of DAB and the importance of interdicting such commercial traffic, I don't feel this would be strong and it would be a Pariah victory.

Victory. So I have to go WR because of these concerns, but it will support the bill moving forward to ensure the discussion can continue.

So noted. Any other comments or questions? If not, passing unamended. Chair votes aye.

Thank you. Of the CPN members present, are there any voting with reservations or objections to the public?

Just a WR.

Okay. For the concerns previously noted.

Okay. Thank you. Your recommendation is adopted.

Thank you very much. We're adjourned.

Okay. Reconvening the 09:10am agenda on Tuesday, 04/07/2026. Conference Room 229. This is to consider House Bill 1481 House Draft two. The recommendation on this measure is to pass with a defective date of 07/01/2050.

Members, any discussion? Vice chair.

Thank you. I appreciate, you know, the, actions that have been taken by the, Martuary Association. However, I do think that the original version of the bill, which required rules by Department of Health, was a stronger means of protecting consumer interest. So I will be voting with reservations, but I support the recommendations that you are making.

Thank you very much. Any other comments or concerns? Seeing none, passing with amendments, chair votes aye.

Aye.

Senator McKelvey?

Thank you. Vice chair votes with reservations. Senator Lamosao?

Yes.

Senator Awa is excused. Your recommendation is adopted.

Thank you, members. And just a reminder, we have a decision making joint agenda in ways and means at 10:30. We're adjourned.