AB509: Bill Text

LRB-0081/2

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2003 - 2004 LEGISLATURE

2003 Assembly BILL 509

September 11, 2003 - Introduced by Representatives Krusick, Jeskewitz, Albers, Hahn, M. Lehman, Miller, Pocan, Seratti, Staskunas, Turner and Van Roy, cosponsored by Senator Carpenter. Referred to Committee on Health.

AB509,1,4 An Act to renumber and amend 100.31 (1) (a) and 100.31 (1) (b); to amend 100.31 (title), 100.31 (1) (c), 100.31 (2) and 100.31 (4); and to create 100.31 (1) (ae), 100.31 (1) (as) and 100.31 (2r) of the statutes; relating to: discrimination in prescription drug prices and granting rule-making authority.

Analysis by the Legislative Reference Bureau

The bill changes a prohibition under current law against price discrimination that applies to a seller who trades in prescription drugs for resale. Under current law, the prohibition applies to a seller who sells prescription drugs directly to consumers. Under the bill, the prohibition applies to a seller who sells to a "dispenser," which the bill defines as a person who delivers a prescription drug to an ultimate user for outpatient use, including an insurer that issues certain types of managed health care plans. Also included under the definition of "dispenser" is a hospital that directly or indirectly bills a patient for prescription drugs.

The prohibition on price discrimination under current law applies to prescription drugs on a list of therapeutically equivalent drugs published by the federal Food and Drug Administration (FDA). This bill provides that the prohibition applies to drugs included in the most current version of either of the following: 1) the FDA list; or 2) another publication specified in rules promulgated by the Department of Agriculture, Trade and Consumer Protection that identifies drug products approved on the basis of safety and effectiveness by the FDA under the federal Food, Drug, and Cosmetic Act.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB509, s. 1 Section 1. 100.31 (title) of the statutes is amended to read:

AB509,2,2 100.31 (title) Unfair discrimination in Prescription drug pricing.

AB509, s. 2 Section 2. 100.31 (1) (a) of the statutes is renumbered 100.31 (1) (bm) and amended to read:

AB509,2,6 100.31 (1) (bm) "Drug" "Prescription drug" means any substance subject to 21 USC 353 (b).

AB509, s. 3 Section 3. 100.31 (1) (ae) of the statutes is created to read:

AB509,2,9 100.31 (1) (ae) "Consumer" means a person for whom a prescription drug is prescribed.

AB509, s. 4 Section 4. 100.31 (1) (as) of the statutes is created to read:

AB509,2,14 100.31 (1) (as) "Federal drug list" means the "Approved Drug Products with Therapeutic Equivalence Evaluations" published by the federal food and drug administration, or other publication specified in rules promulgated by the department under sub. (2r).

AB509, s. 5 Section 5. 100.31 (1) (b) of the statutes is renumbered 100.31 (1) (am) and amended to read:

AB509,3,2 100.31 (1) (am) "Purchaser" " Dispenser" means any person who engages primarily in selling dispensing, as defined in s. 450.01 (7), prescription drugs directly to consumers for outpatient use. "Dispenser" includes a hospital that directly or indirectly bills patients for prescription drugs, or an insurer that issues a defined network plan, as defined in s. 609.01 (1b), and that provides prescription drugs or prescription drug coverage to the enrollees of the plan.

AB509, s. 6 Section 6. 100.31 (1) (c) of the statutes is amended to read:

AB509,3,5 100.31 (1) (c) "Seller" means any person who trades in prescription drugs for resale to purchasers dispensers in this state.

AB509, s. 7 Section 7. 100.31 (2) of the statutes is amended to read:

AB509,3,14 100.31 (2) Price discrimination prohibited. Every seller shall offer prescription drugs from the most current federal drug list of therapeutically equivalent drugs published by the federal food and drug administration to every purchaser dispenser in this state, with all rights and privileges offered or accorded by the seller to the most favored purchaser dispenser, including purchase prices for similar volume purchases, rebates, free merchandise, samples, and similar trade concessions. Nothing in this subsection prohibits the giving of a discount for volume purchases.

AB509, s. 8 Section 8. 100.31 (2r) of the statutes is created to read:

AB509,3,19 100.31 (2r) Rules. The department may promulgate rules that, for purposes of sub. (1) (as), specify a publication that identifies drug products approved on the basis of safety and effectiveness by the federal food and drug administration under the federal Food, Drug, and Cosmetic Act.

AB509, s. 9 Section 9. 100.31 (4) of the statutes is amended to read:

AB509,4,2 100.31 (4) Penalties. For any violation of this section, the department or a district attorney may commence an action on behalf of the state to recover a forfeiture of not less than $100 nor more than $10,000 for each offense. Each delivery of a prescription drug sold to a purchaser dispenser at a price in violation of this section and each separate day in violation of an injunction issued under this section is a separate offense.

AB509, s. 10 Section 10. Effective date.

AB509,4,5 (1) This act takes effect on the first day of the 3rd month beginning after publication.

AB509,4,6 (End)