Report Title:
Prescription Drug Excessive Pricing Prohibited
Description:
Makes it an unfair or deceptive act or practice for drug manufacturers to sell patented prescription drugs for an excessive price or impose minimum resale requirements that result in an excessive price; defines "excessive price" as over 30 per cent higher than the price in any high income country.
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THE SENATE |
S.B. NO. |
2138 |
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TWENTY-THIRD LEGISLATURE, 2006 |
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STATE OF HAWAII |
relating to prescription drugs.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:
"Chapter
prescription drug excessive pricing act
§ -1 Definitions. As used in this chapter:
"High income country" means the United Kingdom, Germany, Canada, or Australia.
§ -2 Excessive pricing in sales of prescription drugs prohibited. No drug manufacturer or licensee thereof, excluding a point of sale retail seller, shall:
(1) Sell or supply for sale a patented prescription drug in this state for an excessive price; or
(2) Impose minimum resale requirements for a patented prescription drug that results in the prescription drug being sold in this state for an excessive price.
§ -3 Burden of proof; determination of excessive pricing. (a) A prima facie case of excessive pricing shall be established where the wholesale price of a patented prescription drug in this state is over thirty per cent higher than the comparable price in any high income country in which the product is protected by patents or other exclusive marketing rights.
(b) Where a prima facie case of excessive pricing is shown, the burdens of providing evidence and of proving by a preponderance of the evidence shall shift to the defendant to show that the prescription drug is not excessively priced given:
(1) Demonstrated costs of invention, development, and production of the prescription drug;
(2) Global sales and profits to date;
(3) Consideration of any government funded research that supported the development of the drug; and
(4) The impact of price on access by residents and the State to the prescription drug.
§ -4 Unfair or deceptive act or practice. Any violation of section -2 shall be deemed to be an unfair or deceptive act or practice in the conduct of trade or commerce within the meaning of section 480-2."
SECTION 2. If any provision of this Act, or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act, which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.
SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.
SECTION 4. This Act shall take effect on January 1, 2007.
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INTRODUCED BY: |
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