HOUSE BILL No. 6471


     November 7, 2002, Introduced by Rep. Kolb and referred to the Committee on Health Policy.


        A bill to amend 1975 PA 228, entitled

   "Single business tax act,"

   (MCL 208.1 to 208.145) by adding section 39f.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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             SEC. 39F.  (1) THE DEPARTMENT, IN CONJUNCTION WITH THE

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        DEPARTMENT OF COMMUNITY HEALTH, SHALL CONDUCT A COST BENEFIT

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        ANALYSIS OF ADVERTISING AND PROMOTIONAL ACTIVITIES ASSOCIATED

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        WITH THE PROVISION OF PRESCRIPTION DRUGS IN THIS STATE BY PHARMA-

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        CEUTICAL COMPANIES.

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             (2) THE DEPARTMENT SHALL ANALYZE THE IMPACT ON THE NECESSITY

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        FOR INPATIENT HOSPITAL CARE, MAJOR AMBULATORY SERVICES, INVASIVE

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        PROCEDURES, THE NUMBER OF VISITS TO HEALTH CARE PROFESSIONALS,

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        AND HEALTH INSURANCE PREMIUM RATES RELATIVE TO THE COSTS

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        ASSOCIATED WITH ADVERTISING AND PROMOTIONAL ACTIVITIES IN THIS

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        STATE BY PHARMACEUTICAL COMPANIES.


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             (3) AT REASONABLE INTERVALS, AS DETERMINED BY THE

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        DEPARTMENT, BUT NOT LESS FREQUENTLY THAN QUARTERLY, PHARMACEUTI-

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        CAL COMPANIES THAT PROVIDE PRESCRIPTION DRUGS IN THIS STATE SHALL

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        PROVIDE THE DEPARTMENT WITH INFORMATION NECESSARY TO CARRY OUT

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        ITS RESPONSIBILITIES UNDER THIS SECTION.  PHARMACEUTICAL COM-

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        PANIES THAT PROVIDE PRESCRIPTION DRUGS IN THIS STATE SHALL DIS-

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        CLOSE IN THE AGGREGATE ALL ADVERTISING AND PROMOTIONAL COSTS TO

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        THE DEPARTMENT.  PHARMACEUTICAL COMPANIES SHALL DISCLOSE, FOR

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        EVERY HEALTH CARE PROFESSIONAL WHO PRESCRIBES PRESCRIPTION DRUGS

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        AND FOR EVERY MANAGED CARE PLAN, PHARMACEUTICAL BENEFITS MANAGE-

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        MENT COMPANY, HOSPITAL, AND CLINIC THAT PROVIDES PRESCRIPTION

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        DRUGS, THE DOLLAR AMOUNTS SPENT ON THE PROFESSIONAL, THAT

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        PROFESSIONAL'S STAFF, THE PERSONNEL OF THE MANAGED CARE PLAN, AND

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        THE PHARMACEUTICAL BENEFITS MANAGEMENT COMPANY, HOSPITAL, AND

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        CLINIC, THE DOLLAR AMOUNT OF THE PHARMACEUTICAL COMPANY'S SALA-

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        RIES PAID, AND COSTS ATTRIBUTABLE TO THE FOLLOWING ACTIVITIES:

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             (A) EDUCATION AND EDUCATIONAL MATERIALS, REGARDLESS OF

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        WHETHER PROVIDED IN THE PLACE OF BUSINESS OF THE HEALTH CARE PRO-

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        FESSIONAL, THE MANAGED CARE PLAN, THE PHARMACEUTICAL BENEFITS

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        MANAGEMENT COMPANY, THE HOSPITAL, THE CLINIC, OR IN ANOTHER SET-

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        TING, AND REGARDLESS OF WHETHER THE PHARMACEUTICAL COMPANY

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        DIRECTLY OR INDIRECTLY PROVIDES THE EDUCATION AND EDUCATIONAL

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        MATERIALS.

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             (B) FOOD AND ENTERTAINMENT.

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             (C) GIFTS OR ANYTHING THAT IS RECEIVED WITHOUT CONSIDERATION

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        OF EQUAL OR GREATER VALUE.





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             (D) TRIPS.

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             (E) TRAVEL.

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             (F) FREE SAMPLES.

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             (G) SEMINARS.

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             (H) REDUCED PRICES ON PRESCRIPTION DRUGS.

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             (4) PHARMACEUTICAL COMPANIES THAT ADVERTISE IN MEDIA TO

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        REACH AN AUDIENCE IN THIS STATE AND PHARMACEUTICAL COMPANIES THAT

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        CORRESPOND DIRECTLY WITH CONSUMERS IN THIS STATE SHALL DISCLOSE

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        THE AGGREGATE COST OF THE ADVERTISING OF PRESCRIPTION DRUGS IN

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        THE MEDIA AND IN CORRESPONDENCE TO THE CONSUMER.

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             (5) PHARMACEUTICAL COMPANIES SHALL DISCLOSE THE PORTION OF

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        SALARIES OF THEIR DRUG REPRESENTATIVES AND SALESPERSONS WHOSE

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        EMPLOYMENT ACTIVITIES INCLUDE ADVERTISING AND PROMOTIONAL

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        ACTIVITIES.

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             (6) THE DEPARTMENT SHALL COLLECT AND COMPILE THE DATA FROM

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        PHARMACEUTICAL COMPANIES REQUIRED UNDER THIS SECTION.

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             (7) THE DEPARTMENT SHALL USE APPROPRIATE MEASURES TO ANALYZE

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        AND COMPARE DATA WITH DATA ON INPATIENT HOSPITAL STAYS, AMBULA-

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        TORY SERVICES, INVASIVE PROCEDURES, AND VISITS TO HEALTH CARE

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        PROFESSIONALS TO CONDUCT THE ANALYSIS REQUIRED BY THIS SECTION.

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             (8) BASED ON THE INFORMATION GATHERED UNDER THIS SECTION,

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        THE DEPARTMENT, IN CONJUNCTION WITH THE DEPARTMENT OF COMMUNITY

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        HEALTH, SHALL RECOMMEND TAX INCENTIVES TO THE LEGISLATURE THAT

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        WILL LOWER THE COST OF PRESCRIPTION DRUGS FOR CITIZENS OF THIS

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        STATE.

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             (9) THE DEPARTMENT SHALL DISSEMINATE DATA COLLECTED UNDER

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        THIS SECTION AND SHALL, NO LATER THAN 2 YEARS AFTER THE EFFECTIVE



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        DATE OF THE AMENDATORY ACT THAT ADDED THIS SECTION, DISCLOSE THE

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        FINDINGS AND MAKE RECOMMENDATIONS TO THE GOVERNOR, THE SENATE,

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        AND THE HOUSE OF REPRESENTATIVES ON THE COSTS ASSOCIATED WITH

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        ADVERTISING AND PROMOTIONAL ACTIVITIES BY PHARMACEUTICAL COM-

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        PANIES; ON THE IMPACT OF ADVERTISING AND PROMOTIONAL ACTIVITIES

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        ON THE UTILIZATION OF PRESCRIPTION DRUGS, THE NECESSITY OF INPA-

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        TIENT HOSPITAL STAYS, AMBULATORY CARE, INVASIVE PROCEDURES,

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        VISITS TO HEALTH CARE PROFESSIONALS, AND HEALTH INSURANCE PREMIUM

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        RATES; AND ON RECOMMENDED TAX INCENTIVES.

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             (10) AS USED IN THIS SECTION:

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             (A) "CORRESPONDENCE" MEANS DIRECT MAIL, TELEPHONE COMMUNICA-

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        TIONS, AND ELECTRONIC MAIL DIRECTED TO SPECIFIC INDIVIDUALS OR

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        HOUSEHOLDS.

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             (B) "MEDIA" MEANS, BUT IS NOT LIMITED TO, RADIO, TELEVISION,

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        THE INTERNET, DAILY AND WEEKLY MAGAZINES AND NEWSPAPERS, AND

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        BILLBOARDS AND SIGNS.

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             (C) "PRESCRIPTION DRUGS" MEANS THAT TERM AS DEFINED IN SEC-

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        TION 17708 OF THE PUBLIC HEALTH CODE, 1978 PA 368, MCL

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        333.17708.  IN ADDITION, PRESCRIPTION DRUG INCLUDES INSULIN,

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        SYRINGES, AND NEEDLES.

















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