2003 Legislation
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HOUSE BILL NO. 289 – Pharmaceutical marketer, disclosure

HOUSE BILL NO. 289

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Daily Data Tracking History



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

Bill Text


                                                                        
                                                                        
  ||||              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 / Fiscal Impact


                         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