73rd OREGON LEGISLATIVE ASSEMBLY--2005 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 1380
 
                         House Bill 2817
 
Sponsored by Representatives TOMEI, GREENLICK; Representatives
  BARKER, BARNHART, BEYER, BOONE, BUCKLEY, DINGFELDER, GALIZIO,
  GARRARD, HANSEN, HASS, HOLVEY, HUNT, JENSON, KOMP, NOLAN,
  RILEY, ROBLAN, ROSENBAUM, SHIELDS, WITT
 
 
                             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 manufacturing companies to disclose
certain economic benefits provided in conjunction with marketing
of prescription drugs. Authorizes imposition of civil penalty for
failure to disclose required information. Directs Department of
Justice to report disclosures to Legislative Assembly and
Governor.
  Establishes Pharmaceutical Marketing Disclosure Fund.
Appropriates moneys in fund to Department of Justice for
administration of Act.
  Declares emergency, effective on passage.
 
                        A BILL FOR AN ACT
Relating to disclosure of economic benefits provided by
  pharmaceutical manufacturing companies; appropriating money;
  and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + (1) All pharmaceutical manufacturing companies
shall disclose annually to the Department of Justice the value,
nature and purpose of any gift, fee, payment, subsidy or other
economic benefit that is provided to any physician, hospital,
nursing home, pharmacist, health benefit plan administrator or
other person authorized to prescribe or dispense prescription
drugs in this state in connection with detailing, promotional or
other marketing activities by the company directly or through a
pharmaceutical marketer acting on behalf of the company.
  (2) The disclosure required under subsection (1) of this
section must:
  (a) Be made annually by February 15;
  (b) Cover the calendar year ending on December 31 preceding the
reporting date;
  (c) Include the name and address of the individual responsible
for compliance by the company 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 of Justice shall report annually by April 1
on the disclosures received under this section to the Legislative
 
Assembly in the manner provided in ORS 192.245 and to the
Governor.
  (4) The Department of Justice shall keep confidential all
information reported under subsection (1) of this section that
qualifies as a trade secret as that term is described in ORS
192.501.
  (5) The following are exempt from disclosure under this
section:
  (a) Free samples of prescription drugs intended to be
distributed to patients;
  (b) Payment of reasonable compensation and reimbursement of
expenses for bona fide clinical trials;
  (c) Any gift, fee, payment, subsidy or economic benefit with a
value of less than $25; and
  (d) Scholarships or other support for medical students,
residents or fellows to attend educational, scientific or
policy-making conferences of a national, regional, medical
specialty or other professional association if the recipients of
the scholarships or other support are selected by the
association.
  (6) The Department of Justice shall adopt rules necessary for
the administration of this section.
  (7) As used in this section:
  (a) 'Pharmaceutical manufacturing company' means an entity
engaged in the production, preparation, propagation, compounding,
conversion or processing of prescription drugs, either 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 an entity engaged in the
packaging, repackaging, labeling or distribution of prescription
drugs. 'Pharmaceutical manufacturing company' does not include a
pharmacist licensed under ORS chapter 689.
  (b) 'Pharmaceutical marketer' means a person who, while
employed by or under contract to represent a pharmaceutical
manufacturing company, engages in detailing, promotional or other
marketing activities of prescription drugs in this state to any
physician, hospital, nursing home, pharmacist, health benefit
plan administrator or other person authorized to prescribe or
dispense prescription drugs in this state. + }
  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 2005 Act. Each gift, fee, payment, subsidy or other economic
benefit not disclosed as required by section 1 of this 2005 Act
constitutes a separate violation of section 1 of this 2005 Act.
  (2) Civil penalties under this section shall be imposed in the
manner provided by ORS 183.745. + }
  SECTION 3.  { + The Pharmaceutical Marketing Disclosure Fund is
established, separate and distinct from the General Fund. All
moneys received under section 2 of this 2005 Act shall be
credited to the Pharmaceutical Marketing Disclosure Fund and are
continuously appropriated to the Department of Justice for the
purposes of administering section 1 of this 2005 Act. + }
  SECTION 4.  { + This 2005 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2005 Act takes effect on its
passage. + }
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