0001| SENATE BILL 555
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0002| 42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
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0003| 1996
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0004| INTRODUCED BY
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0005| TIMOTHY Z. JENNINGS
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0006|
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0007|
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0008|
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0009|
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0010|
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0011| AN ACT
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0012| RELATING TO HEALTH; ENACTING THE PRESCRIPTION DRUG FAIR PRICING
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0013| ACT; PROVIDING FOR EQUAL ACCESS TO PRESCRIPTION DRUG PRICES.
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0014|
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0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016| Section 1. SHORT TITLE.--This act may be cited as the
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0017| "Prescription Drug Fair Pricing Act".
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0018| Section 2. DEFINITIONS.--As used in the Prescription Drug
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0019| Fair Pricing Act:
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0020| A. "charitable health care provider" means a health
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0021| care provider that is exempt from federal taxation under Section
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0022| 501(c)(3) of the Internal Revenue Code, as amended;
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0023| B. "covered transaction" means any sale of a
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0024| prescription drug to a purchaser doing business in this state in
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0025| which a manufacturer, whether by direct sale to a purchaser or
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0001| through a contractual arrangement implemented by one or more
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0002| wholesalers, negotiates, establishes, determines or otherwise
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0003| controls the price, terms or conditions of sale, including
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0004| rebates, free merchandise, samples and similar trade
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0005| concessions;
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0006| C. "drug" or "prescription drug" means a drug or
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0007| device, which may be dispensed only upon a prescription as those
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0008| terms are defined in the New Mexico Drug, Device and Cosmetic
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0009| Act;
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0010| D. "manufacturer" or "seller" means a person, other
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0011| than a wholesaler, that trades in prescription drugs for resale,
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0012| either directly or through a wholesaler, to purchasers in this
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0013| state;
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0014| E. "purchaser" means a person doing business in this
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0015| state that engages in selling or dispensing prescription drugs
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0016| directly to consumers but does not include:
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0017| (1) the federal department of veterans'
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0018| affairs, the department of defense, entities covered under
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0019| Section 256b(a)(4) of the Public Service Health Act, as amended,
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0020| and any other federal, state or local government program that
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0021| directly purchases or procures prescription drugs;
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0022| (2) hospitals that purchase prescription drugs
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0023| for their inpatients' own use, but not for resale or outpatient
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0024| use; and
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0025| (3) charitable health care providers, except
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0001| those that offer, issue or administer a health insurance policy
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0002| or an employee benefit plan; and
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0003| F. "wholesaler" means a person other than a
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0004| manufacturer that sells prescription drugs to purchasers.
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0005| Section 3. PRESCRIPTION DRUG PRICE DISCRIMINATION
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0006| PROHIBITED.--
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0007| A. A seller that offers prescription drugs in a
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0008| covered transaction to a purchaser shall, during the same or
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0009| substantially the same time period, offer the same or
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0010| substantially the same terms and conditions for the drugs in a
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0011| covered transaction to any other purchaser. This provision
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0012| applies to:
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0013| (1) transactions in which a manufacturer sells
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0014| to a purchaser through a contractual arrangement with one or
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0015| more wholesalers;
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0016| (2) purchase prices for similar volume
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0017| purchases; and
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0018| (3) rebates, free merchandise, samples and
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0019| similar trade concessions.
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0020| B. The provisions in Subsection A of this section do
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0021| not prohibit a seller from offering or providing a discount,
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0022| provided the discount is made available to all purchasers on
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0023| equal terms. This includes allowing discounts for:
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0024| (1) economies or efficiencies based on volume
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0025| purchases;
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0001| (2) opportunities available to purchasers on
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0002| equal terms through market share movement agreements;
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0003| (3) prompt payment; and
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0004| (4) prompt delivery.
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0005| C. No seller shall provide discounts to any
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0006| purchaser based on the class of trade to which the purchaser
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0007| belongs.
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0008| D. The provisions of this section apply to any
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0009| covered transaction for the purchase of prescription drugs
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0010| delivered to a purchaser or purchaser's facility for sale to
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0011| consumers in the state.
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0012| E. Nothing in this section is intended to require a
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0013| single price for prescription drugs or to eliminate existing
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0014| discount programs that conform with the provisions of this
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0015| section.
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0016| Section 4. ENFORCEMENT.--
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0017| A. A seller that violates a provision of the
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0018| Prescription Drug Fair Pricing Act shall pay a civil penalty of
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0019| not less than one thousand dollars ($1,000) and not more than
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0020| fifty thousand dollars ($50,000) for each violation. The
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0021| attorney general shall bring an action in district court to
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0022| enforce the provisions of the Prescription Drug Fair Pricing
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0023| Act.
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0024| B. Any purchaser may bring a civil action against
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0025| any seller to recover damages suffered as a result of a
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0001| violation of a provision of the Prescription Drug Fair Pricing
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0002| Act. Proof of price discrimination shall constitute prima facie
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0003| evidence that damages have been sustained. When damages are
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0004| proved, the court shall award the purchaser three times the
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0005| actual damages caused by the seller's violation of the
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0006| Prescription Drug Fair Pricing Act.
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0007|
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