75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 281
 
                         House Bill 2376
 
Sponsored by Representative TOMEI (Presession filed.)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Requires pharmaceutical manufacturer to annually report to
Department of Justice gifts, fees, payments, subsidies or other
economic benefits manufacturer provides to purchasers, providers
or dispensers of manufacturer's prescription drugs in this state.
  Authorizes imposition of civil penalty, not to exceed $10,000
for each violation, for failure to report required information.
  Directs department to report to Legislative Assembly and
Governor.
  Establishes Pharmaceutical Marketing Reporting
Fund. Appropriates moneys in fund to department for
administration of Act.
  Declares emergency, effective on passage.
 
                        A BILL FOR AN ACT
Relating to reporting of economic benefits provided by
  pharmaceutical manufacturers; appropriating money; and
  declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + (1) A pharmaceutical manufacturer that sells
the manufacturer's products in this state shall annually report
to the Department of Justice any gift, fee, payment, subsidy or
other economic benefit that the manufacturer provides directly,
or through a pharmaceutical marketer acting on behalf of the
manufacturer, to any purchaser, prescriber or dispenser of the
manufacturer's prescription drugs in this state.
  (2) The report required under subsection (1) of this section
must:
  (a) Be made annually by February 15;
  (b) Specify the value of gifts, fees, payments, subsidies or
other economic benefits provided by the pharmaceutical
manufacturer and the names of the recipients of the gifts, fees,
payments, subsidies or other economic benefits that are being
reported during the calendar year ending on December 31 preceding
the reporting date;
  (c) Include the name and address of the individual charged by
the manufacturer with the responsibility for ensuring compliance
with the requirements of subsection (1) of this section; and
  (d) Be made in the manner established by the department by
rule.
 
 
  (3) The department shall keep confidential all information
reported under subsection (1) of this section that is a trade
secret as that term is used in ORS 192.501.
  (4) The department shall adopt rules necessary for the
administration of this section.
  (5) As used in this section:
  (a) 'Drug' has the meaning given that term in ORS 689.005.
  (b) 'Gift, fee, payment, subsidy or other economic benefit '
does not include a drug sample provided by a pharmaceutical
manufacturer, the manufacturer's agent or the manufacturer's
pharmaceutical marketer to a purchaser, prescriber or dispenser
of the manufacturer's prescription drugs for distribution, free
of charge, to patients, customers or enrollees of the purchaser,
prescriber or dispenser.
  (c)(A) 'Pharmaceutical manufacturer' means an entity engaged
in:
  (i) The production, preparation, propagation, compounding,
conversion or processing of prescription drugs, directly or
indirectly by extraction from substances of natural origin or
independently by means of chemical synthesis, or by a combination
of extraction and chemical synthesis; or
  (ii) The packaging, repackaging, labeling or distribution of
prescription drugs.
  (B) 'Pharmaceutical manufacturer' does not include a pharmacist
licensed under ORS chapter 689.
  (d) 'Pharmaceutical marketer' means a person that, while
employed by or under contract to represent a pharmaceutical
manufacturer, engages in detailing, promotional or other
prescription drug marketing activities.
  (e) 'Prescription drug' has the meaning given that term in ORS
689.005.
  (f) 'Purchaser, prescriber or dispenser' means any individual
who is:
  (A) Authorized or licensed under the laws of this state to
prescribe drugs;
  (B) Authorized or licensed under the laws of this state to
dispense drugs; or
  (C) Authorized or employed by a health benefit plan, as defined
in ORS 743.730, to determine the drugs to be included in the
plan's drug formulary or to purchase drugs in bulk for dispensing
to the enrollees in the health benefit plan. + }
  SECTION 2.  { + (1) The Department of Justice may impose a
civil penalty of up to $10,000 for each violation of section 1 of
this 2009 Act. Each gift, fee, payment, subsidy or other economic
benefit not reported as required by section 1 of this 2009 Act
constitutes a separate violation of section 1 of this 2009 Act.
  (2) Civil penalties under this section shall be imposed in the
manner provided by ORS 183.745. + }
  SECTION 3.  { + The Department of Justice shall, by April 1 of
each year, submit to the Legislative Assembly in the manner
provided in ORS 192.245 and to the Governor, a report of:
  (1) Information obtained under section 1 of this 2009 Act,
except for trade secrets kept confidential under section 1 (3) of
this 2009 Act; and
  (2) Penalties imposed under section 2 of this 2009 Act during
the reporting year. + }
  SECTION 4.  { + The Pharmaceutical Marketing Reporting Fund is
established, separate and distinct from the General Fund. All
moneys received under section 2 of this 2009 Act shall be
credited to the Pharmaceutical Marketing Reporting Fund and are
continuously appropriated to the Department of Justice for the
purposes of administering sections 1 to 3 of this 2009 Act. + }
  SECTION 5.  { + Sections 1 and 2 of this 2009 Act become
operative on January 1, 2010. + }
  SECTION 6.  { + Section 3 of this 2009 Act becomes operative on
January 1, 2011. + }
  SECTION 7.  { + The Department of Justice may take any action
prior to the operative dates specified in sections 5 and 6 of
this 2009 Act in order to carry out the duties, functions and
powers of the department under sections 1 to 3 of this 2009
Act. + }
  SECTION 8.  { + This 2009 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2009 Act takes effect on its
passage. + }
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