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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 - 2003
IN 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