130th Ohio General Assembly
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S. B. No. 123As Introduced
As Introduced

125th General Assembly
Regular Session
2003-2004
S. B. No. 123


SENATOR Hagan



A BILL
To amend section 4729.99 and to enact section 4729.50 of the Revised Code to require pharmaceutical drug manufacturers to disclose their advertising and promotional expenses to the State Board of Pharmacy and to require the Board to compile the disclosures into an annual report.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 4729.99 be amended and section 4729.50 of the Revised Code be enacted to read as follows:
Sec. 4729.50. (A) As used in this section, "advertising and promotional activity" means any manner, method, means, or activity by which any information about a dangerous drug is placed before prescribers or the public or any other manner, method, means, or activity undertaken for the purpose of creating an interest in the dangerous drug. "Advertising and promotional activity" includes any of the following:
(1) Advertisement in any media, including motion pictures, television, radio, the internet, newspapers, magazines, books, billboards, or signs;
(2) Provision of education or educational materials by any method, including personal contact, direct mailing, telephone communication, or electronic mail;
(3) Gifts, or anything of value that is offered or purportedly offered, or given or purportedly given by chance, at no cost to the receiver and with no obligation to purchase goods or services;
(4) Free food and entertainment;
(5) Free trips or travel accommodations;
(6) Free seminars;
(7) Free samples of or reduced prices on dangerous drugs produced by the manufacturer;
(8) Any other activity the state board of pharmacy considers to be advertising and promotion.
(B) By not later than the thirty-first day of January of each year, each manufacturer of dangerous drugs that does business in this state shall submit a report to the state board of pharmacy. The report shall be on a form prescribed by the board and disclose all of the following information:
(1) The dollar amount and description of each advertising and promotional activity conducted in this state during the preceding year for each of the following:
(a) Prescribers;
(b) Wholesale and terminal distributors of dangerous drugs;
(c) Health insuring corporations;
(d) Pharmaceutical benefits companies;
(e) Hospitals and clinics that provide dangerous drugs to patients.
(2) The salaries for the preceding year of all representatives of the manufacturer of dangerous drugs whose duties involve advertising and promotional activity on behalf of the manufacturer.
(C) The state board of pharmacy shall compile the manufacturer's reports into an annual written report. By not later than the thirtieth day of June, the board shall provide a copy of the report to each member of the general assembly and shall make print and electronic versions of the report available to the public.
Sec. 4729.99.  (A) Whoever violates section 4729.16, division (A) or (B) of section 4729.38, or section 4729.57 of the Revised Code is guilty of a minor misdemeanor. Each day's violation constitutes a separate offense.
(B) Whoever violates section 4729.27, 4729.28, or 4729.36 of the Revised Code is guilty of a misdemeanor of the third degree. Each day's violation constitutes a separate offense. If the offender previously has been convicted of or pleaded guilty to a violation of this chapter, that person is guilty of a misdemeanor of the second degree.
(C) Whoever violates section 4729.32, 4729.33, or 4729.34 of the Revised Code is guilty of a misdemeanor.
(D) Whoever violates division (A), (B), (D), or (E) of section 4729.51 of the Revised Code is guilty of a misdemeanor of the first degree.
(E)(1) Whoever violates section 4729.37, division (C)(2) of section 4729.51, division (J) of section 4729.54, or section 4729.61 of the Revised Code is guilty of a felony of the fifth degree. If the offender previously has been convicted of or pleaded guilty to a violation of this chapter or a violation of Chapter 2925. or 3719. of the Revised Code, that person is guilty of a felony of the fourth degree.
(2) If an offender is convicted of or pleads guilty to a violation of section 4729.37, division (C) of section 4729.51, division (J) of section 4729.54, or section 4729.61 of the Revised Code, if the violation involves the sale, offer to sell, or possession of a schedule I or II controlled substance, with the exception of marihuana, and if the court imposing sentence upon the offender finds that the offender as a result of the violation is a major drug offender, as defined in section 2929.01 of the Revised Code, and is guilty of a specification of the type described in section 2941.1410 of the Revised Code, the court, in lieu of the prison term authorized or required by division (E)(1) of this section and sections 2929.13 and 2929.14 of the Revised Code and in addition to any other sanction imposed for the offense under sections 2929.11 to 2929.18 of the Revised Code, shall impose upon the offender, in accordance with division (D)(3)(a) of section 2929.14 of the Revised Code, the mandatory prison term specified in that division and may impose an additional prison term under division (D)(3)(b) of that section.
(3) Notwithstanding any contrary provision of section 3719.21 of the Revised Code, the clerk of court shall pay any fine imposed for a violation of section 4729.37, division (C) of section 4729.51, division (J) of section 4729.54, or section 4729.61 of the Revised Code pursuant to division (A) of section 2929.18 of the Revised Code in accordance with and subject to the requirements of division (F) of section 2925.03 of the Revised Code. The agency that receives the fine shall use the fine as specified in division (F) of section 2925.03 of the Revised Code.
(F) Whoever violates section 4729.531 of the Revised Code or any rule adopted thereunder or section 4729.532 of the Revised Code is guilty of a misdemeanor of the first degree.
(G) Whoever violates division (C)(1) of section 4729.51 of the Revised Code is guilty of a felony of the fourth degree. If the offender has previously been convicted of or pleaded guilty to a violation of this chapter, or of a violation of Chapter 2925. or 3719. of the Revised Code, that person is guilty of a felony of the third degree.
(H) Whoever violates division (C)(3) of section 4729.51 of the Revised Code is guilty of a misdemeanor of the first degree. If the offender has previously been convicted of or pleaded guilty to a violation of this chapter, or of a violation of Chapter 2925. or 3719. of the Revised Code, that person is guilty of a felony of the fifth degree.
(I)(1) Whoever violates section 4729.50 of the Revised Code by failure to report by the date prescribed all advertising and promotional activities or by misreporting advertising and promotional activities to the state board of pharmacy is subject to a civil penalty imposed by the state board of pharmacy of double the dollar amount of all unreported or misreported advertising and promotional activities.
(2) The board's executive director may waive all or part of the civil penalty provided for in this division on a showing that a manufacturer of dangerous drugs had reasonable grounds for failure to comply with the reporting requirements of section 4729.50 of the Revised Code.
Section 2. That existing section 4729.99 of the Revised Code is hereby repealed.
Section 3. Sections 1 and 2 of this act shall take effect on the first day of January that occurs not earlier than six months after the effective date of this act.
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