HB 3957

Abstract

Creates the Pharmaceutical and Health Affordability: Restrictions on Manufacturers' Amoral Behavior through Reasonable Oversight Act. Provides that a manufacturer or wholesale drug distributor shall not engage in price gouging in the sale of an essential off-patent or generic drug. Provides that the Director of Healthcare and Family Services or Director of Central Management Services may notify the Attorney General of any increase in the price of any essential off-patent or generic drug under the State’s Medical Assistance Program or a State health plan, respectively, that amounts to price gouging. Provides that whenever the Attorney General has reason to believe that a manufacturer or wholesale drug distributor of an essential off-patent or generic drug has violated the Act, the Attorney General shall send a notice to the manufacturer or wholesale drug distributor requesting a specified statement. Provides that within 45 days after receipt of the request, the manufacturer or wholesale drug distributor shall submit the statement to the Attorney General. Provides that to accomplish the objectives and carry out the duties prescribed in the Act, the Attorney General may issue subpoenas or examine under oath any person to determine whether a manufacturer or wholesale drug distributor has violated the Act. Provides that upon petition of the Attorney General, a circuit court may issue specified orders against violations of the Act. Contains provisions concerning the disclosure of financial information provided by a manufacturer or wholesale drug distributor to the Attorney General. Effective January 1, 2024. House Floor Amendment No. 1 Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill with the following changes. Sets forth legislative findings. Provides that the Director of Healthcare and Family Services or Director of Central Management Services shall (rather than may) notify the Attorney General of any increase in the price of any essential off-patent or generic drug under the State’s Medical Assistance Program or a State health plan, respectively, that amounts to price gouging. Provides that a notice sent by the Attorney General to the manufacturer or wholesale drug distributor of an essential off-patent or generic drug shall serve as a litigation hold regarding documents and communications about that drug. Provides that upon petition of the Attorney General, a circuit court may issue an order imposing a civil penalty of up to $10,000 per day (rather than only $10,000) for each violation of the Act or providing for the Attorney General's recovery of costs and disbursements incurred in bringing an action against a manufacturer found to be in violation of the Act. Makes other changes. Effective January 1, 2024. House Floor Amendment No. 2 Makes a change in the definition of "price gouging". Senate Committee Amendment No. 1 Provides that if the Attorney General has reason to believe that a manufacturer or wholesale drug distributor of an essential off-patent or generic drug has violated the provisions, then the Attorney General may (rather than shall) send a notice to the manufacturer or the wholesale drug distributor requesting a statement. Removes language providing that the Director of Central Management Services shall notify the Attorney General of any increase in the price of any essential off-patent or generic drug under the State health plan that amounts to price gouging.