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H0289.........................................................by STATE AFFAIRS PHARMACEUTICAL MARKETERS - Adds to existing law to set forth disclosure requirements for pharmaceutical manufacturers and marketers regarding promotional or other marketing activities to any physician, hospital, nursing home, pharmacist, health benefit plan administrator or other person authorized to prescribe, dispense or purchase prescription drugs; to provide for confidentiality; to provide exemptions; to provide for civil actions and penalties; and to define terms. 02/20 House intro - 1st rdg - to printing 02/21 Rpt prt - to Bus
|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-seventh Legislature First Regular Session - 2003IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 289 BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO PHARMACEUTICAL MARKETERS; AMENDING CHAPTER 17, TITLE 54, IDAHO 3 CODE, BY THE ADDITION OF A NEW SECTION 54-1751, IDAHO CODE, TO SET FORTH 4 DISCLOSURE PROVISIONS FOR PHARMACEUTICAL MANUFACTURERS AND MARKETERS, TO 5 PROVIDE FOR CONFIDENTIALITY OF INFORMATION, TO PROVIDE EXEMPTIONS, TO PRO- 6 VIDE FOR CIVIL ACTIONS AND CIVIL PENALTIES AND TO DEFINE TERMS. 7 Be It Enacted by the Legislature of the State of Idaho: 8 SECTION 1. That Chapter 17, Title 54, Idaho Code, be, and the same is 9 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 10 ignated as Section 54-1751, Idaho Code, and to read as follows: 11 54-1751. PHARMACEUTICAL MARKETERS. (1) Annually on or before January 1, 12 every pharmaceutical manufacturing company shall disclose to the secretary of 13 state the value, nature and purpose of any gift, fee, payment, subsidy or 14 other economic benefit provided in connection with detailing, promotional or 15 other marketing activities by the company, directly or through its pharmaceu- 16 tical marketers, to any physician, hospital, nursing home, pharmacist, health 17 benefit plan administrator or any other person in Idaho authorized to pre- 18 scribe, dispense or purchase prescription drugs in this state. The pharmaceu- 19 tical company shall also disclose to the secretary of state the name and 20 address of the recipient of any such gift, fee, payment, subsidy or other eco- 21 nomic benefit. Disclosure shall be made on a form and in a manner prescribed 22 by the secretary of state. Initial disclosure shall be made on or before Janu- 23 ary 1, 2005, for the twelve (12) month period ending June 30, 2004. The secre- 24 tary of state shall provide to the office of the attorney general complete 25 access to the information required to be disclosed under this subsection. The 26 office of the attorney general shall report annually on the disclosures made 27 under this section to the legislature and the governor on or before March 1. 28 (2) Each company subject to the provisions of this section shall also 29 disclose to the secretary of state, on or before October 1, 2003, and annually 30 thereafter, the name and address of the individual responsible for the 31 company's compliance with the provisions of this section. 32 (3) The secretary of state and the office of the attorney general shall 33 keep confidential all trade secret information, as defined by section 9-340D, 34 Idaho Code. The disclosure form prescribed by the secretary of state shall 35 permit the company to identify any information that is a trade secret. 36 (4) The following shall be exempt from disclosure: 37 (a) Free samples of prescription drugs intended to be distributed to 38 patients; 39 (b) The payment of reasonable compensation and reimbursement of expenses 40 in connection with bona fide clinical trials. As used in this subsection, 41 "clinical trial" means an approved clinical trial conducted in connection 42 with a research study designed to answer specific questions about vac- 43 cines, new therapies or new ways of using known treatments; 2 1 (c) Any gift, fee, payment, subsidy or other economic benefit the value 2 of which is less than fifty dollars ($50.00); and 3 (d) Scholarship or other support for medical students, residents and fel- 4 lows to attend a significant educational, scientific or policymaking con- 5 ference of a national, regional, or specialty medical or other profes- 6 sional association if the recipient of the scholarship or other support is 7 selected by the association. 8 (5) The attorney general may bring an action in district court for 9 injunctive relief, costs and attorney's fees, and to impose on a pharmaceuti- 10 cal manufacturing company that fails to disclose as required by this section a 11 civil penalty of no more than ten thousand dollars ($10,000) per violation. 12 Each unlawful failure to disclose shall constitute a separate violation. 13 (6) As used in this section: 14 (a) "Pharmaceutical manufacturing company" means any entity which is 15 engaged in the production, preparation, propagation, compounding, conver- 16 sion or processing of prescription drugs, either directly or indirectly by 17 extraction from substances of natural origin, or independently by means of 18 chemical synthesis, or by a combination of extraction and chemical synthe- 19 sis, or any entity engaged in the packaging, repackaging, labeling, 20 relabeling or distribution of prescription drugs. The term does not 21 include a pharmacist licensed under the provisions of this chapter. 22 (b) "Pharmaceutical marketer" means a person who, while employed by or 23 under contract to represent a pharmaceutical manufacturing company, 24 engages in pharmaceutical detailing, promotional activities or other mar- 25 keting of prescription drugs in this state to any physician, hospital, 26 nursing home, pharmacist, health benefit plan administrator or any other 27 person authorized to prescribe, dispense or purchase prescription drugs. 28 The term does not include a wholesale drug distributor or the 29 distributor's representative who promotes or otherwise markets the ser- 30 vices of the wholesale drug distributor in connection with a prescription 31 drug.
STATEMENT OF PURPOSE RS12800C2 The purpose of this legislation is to make available data on drug industry marketing and promotional spending in Idaho. Specifically it should provide information of gifts and promotions for doctors and health care providers. The legislation requires that pharmaceutical manufacturers disclose the value, nature and purpose of any gift, fee, subsidy, or other economic benefit provided in connection with detailing, promotional, or other marketing activities by the company through its pharmaceutical marketers to any physician, hospital, nursing home, pharmacist, health benefit plan administrator, or anyone who is authorized to prescribe, dispense, or purchase prescription drugs in Idaho. Disclosure begins on or before January 1, 2005 for the twelve month period ending June 30, 2004. Disclosure will be to the Office of the Secretary of State. That office shall provide to the office of the attorney general access to all information required. A report to the legislature and the governor shall be made by the office of the attorney general on or before March 1 annually. Trade secrets will be protected. Exempt from disclosure are: free samples, payments in connection with bona fide clinical trials which are defined, gifts and payments under $50.00 and scholarships or other support for students, residents and fellows to attend educational or scientific conferences if the recipient is selected by the professional association. The regular disclosure of marketing cost information by drug companies will be useful in at least two ways: It will better inform the public and state government on how drug companies create demand for their products, and whether their efforts are in the public interest of keeping down the cost of prescription drugs to consumers. Greater transparency of the costs incurred by pharmaceutical companies may improve the states negotiating position with manufacturers and result in lower prices. FISCAL IMPACT There will be additional staff costs in the office of the Secretary of State. It is recommended that the elections division assume these duties which should not conflict with the campaign disclosure office functions. Some additional duties will need to be assumed by the Consumer Protection unit of the office of the attorney general. Contact Name: Rep. Wendy Jaquet Phone: 208-332-1130 STATEMENT OF PURPOSE/FISCAL NOTE H 28