SB2893 95TH GENERAL ASSEMBLY

LRB095 19261 WGH 46369 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB2893

Introduced 2/15/2008, by Sen. Dan Kotowski

SYNOPSIS AS INTRODUCED:

New Act
815 ILCS 505/2Z	from Ch. 121 1/2, par. 262Z

Creates the Pharmaceutical Consumer Protection Act. Provides that, with regard to a prescription for a drug that is written by a prescriber within Illinois or that is dispensed within Illinois, a prescriber, company, pharmacy, or prescription drug information intermediary may not license, use, sell, transfer, or exchange for value, for any commercial purpose, prescription drug information that identifies directly or indirectly the individual or the prescriber, with specified exceptions. Provides that any person who violates any provision of the Act commits an unlawful practice within the meaning of the Consumer Fraud and Deceptive Business Practices Act, and makes a corresponding change in the Consumer Fraud and Deceptive Business Practices Act. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning business.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Pharmaceutical Consumer Protection Act.

Section 5. Definitions. As used in this Act:

"Company" means an insurance or surety company and shall be deemed to include a corporation, company, partnership, association, society, order, individual, or aggregation of individuals engaging in or proposing or attempting to engage in any kind of insurance or surety business, including the exchanging of reciprocal or inter insurance contracts between individuals, partnerships, and corporations.

"Administrator" means any person who receives or collects charges, contributions, or premiums for, or adjusts or settles claims in connection with, any type of health benefit provided as an alternative to insurance.

"Commercial purpose" means advertising, marketing, promotion, or any similar activity that is used or intended to be used to influence sales or the market share of a pharmaceutical drug, to influence or elevate the prescribing behavior of a prescriber, to market prescription drugs to individuals, or to elevate the effectiveness of a professional pharmaceutical detailing sales force.

"De-identified" means information that cannot be used to directly or indirectly identify the patient or the prescriber. Information that may identify the patient or prescriber includes a person's name, address, telephone number, facsimile number, electronic mail address, photograph or likeness, account, credit card, medical record, social security number, or any other unique number, characteristic, code, or information that is likely to lead to the identification of the patient or prescriber.

"Electronic transmission intermediary" means an entity that provides the infrastructure that connects the computer systems or other electronic devices used by health care practitioners, prescribers, pharmacies, health care facilities and pharmacy benefit managers, companies, administrators and agents and contractors of those persons and entities in order to facilitate the secure transmission of an individual's prescription drug order, refill, authorization request, claim, payment, or other prescription drug information.

"Health care facility" means a licensed facility, institution, or entity that offers health care to persons in this State, including a health care provider, home health care provider, hospice program and a pharmacy.

"Health care practitioner" means a person licensed to provide or otherwise lawfully providing health care or a partnership or corporation made up of those persons or an officer, employee, agent, or contractor of that person acting in the course and scope of employment, agency, or contract related to or supportive of the provision of health care to individuals.

"Individual" means a natural person who is the subject of prescription drug information.

"Pharmacy" means a pharmacy registered under the Pharmacy Practice Act.

"Pharmacy benefits manager" means an entity that performs pharmacy benefits management. "Pharmacy benefits manager" includes a person or entity acting for a pharmacy benefits manager in a contractual or employment relationship in the performance of pharmacy benefits management for a covered entity and includes mail service pharmacies.

"Prescriber" means a person who is licensed, registered, or otherwise authorized to prescribe and administer drugs in the course of professional practice.

"Prescription drug information" means information concerning prescription drugs which under federal law, is required, prior to being dispensed or delivered, to be labeled "Caution: Federal law prohibits dispensing without prescription" or is required by an applicable federal or State law or rule to be dispensed on prescription only or is restricted to use by practitioners only, and includes lawful written or oral orders of a practitioner for a drug or device, issued on a prescription form or by electronic transmission.

"Prescription drug information intermediary" means a person or entity that communicates, facilitates, or participates in the exchange of prescription drug information regarding an individual or a prescriber. "Prescription drug information intermediary" includes, but shall not be limited to, a pharmacy benefits manager, an administrator, and an electronic transmission intermediary.

"Regulated transaction" means a prescription for a drug that is written by a prescriber within the State of Illinois or that is dispensed within the State of Illinois.

Section 10. Prohibition. With regard to a regulated transaction, a prescriber, company, pharmacy, or prescription drug information intermediary may not license, use, sell, transfer, or exchange for value, for any commercial purpose, prescription drug information that identifies directly or indirectly the individual or the prescriber except if expressly permitted as a regulated transaction that is allowed under Section 15.

Section 15. Certain transactions allowed. The following regulated transactions are allowed and are not subject to the prohibitions of Section 10:

(1) the dispensing of prescription drugs to an individual or the individual's authorized representative, the transmission of prescription drug information between a prescriber and a pharmacy or other health care practitioner caring for the individual, and the transfer of prescription information between pharmacies;

(2) the transfer of prescription records that may occur when a pharmacy's ownership is changed or transferred;

(3) care management educational communications provided to an individual about the individual's health condition, adherence to a prescribed course of therapy, or other information relating to the drug being dispensed, treatment options, or clinical trials;

(4) transfers for the limited purpose of pharmacy reimbursement, prescription drug formulary or prior authorization compliance, patient care management, utilization review, health care research, or as required by law; and

(5) the collection, use, transfer, or sale of prescription drug information that is de-identified and that does not directly or indirectly identify the individual or prescriber.

Section 20. Penalties. Any person who violates any provision of this Act commits an unlawful practice within the meaning of the Consumer Fraud and Deceptive Business Practices Act.

Section 90. The Consumer Fraud and Deceptive Business Practices Act is amended by changing Section 2Z as follows:

(815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z)

(Text of Section before amendment by P.A. 95-562)

Sec. 2Z. Violations of other Acts. Any person who knowingly violates the Automotive Repair Act, the Automotive Collision Repair Act, the Home Repair and Remodeling Act, the Dance Studio Act, the Physical Fitness Services Act, the Hearing Instrument Consumer Protection Act, the Illinois Union Label Act, the Job Referral and Job Listing Services Consumer Protection Act, the Travel Promotion Consumer Protection Act, the Credit Services Organizations Act, the Automatic Telephone Dialers Act, the Pay-Per-Call Services Consumer Protection Act, the Telephone Solicitations Act, the Illinois Funeral or Burial Funds Act, the Cemetery Care Act, the Safe and Hygienic Bed Act, the Pre-Need Cemetery Sales Act, the High Risk Home Loan Act, the Payday Loan Reform Act, the Mortgage Rescue Fraud Act, subsection (a) or (b) of Section 3-10 of the Cigarette Tax Act, the Payday Loan Reform Act, subsection (a) or (b) of Section 3-10 of the Cigarette Use Tax Act, the Electronic Mail Act, the Internet Caller Identification Act, paragraph (6) of subsection (k) of Section 6-305 of the Illinois Vehicle Code, Article 3 of the Residential Real Property Disclosure Act, the Automatic Contract Renewal Act, or the Personal Information Protection Act, or the Pharmaceutical Consumer Protection Act commits an unlawful practice within the meaning of this Act.

(Source: P.A. 94-13, eff. 12-6-05; 94-36, eff. 1-1-06; 94-280, eff. 1-1-06; 94-292, eff. 1-1-06; 94-822, eff. 1-1-07; 95-413, eff. 1-1-08.)

(Text of Section after amendment by P.A. 95-562)

Sec. 2Z. Violations of other Acts. Any person who knowingly violates the Automotive Repair Act, the Automotive Collision Repair Act, the Home Repair and Remodeling Act, the Dance Studio Act, the Physical Fitness Services Act, the Hearing Instrument Consumer Protection Act, the Illinois Union Label Act, the Job Referral and Job Listing Services Consumer Protection Act, the Travel Promotion Consumer Protection Act, the Credit Services Organizations Act, the Automatic Telephone Dialers Act, the Pay-Per-Call Services Consumer Protection Act, the Telephone Solicitations Act, the Illinois Funeral or Burial Funds Act, the Cemetery Care Act, the Safe and Hygienic Bed Act, the Pre-Need Cemetery Sales Act, the High Risk Home Loan Act, the Payday Loan Reform Act, the Mortgage Rescue Fraud Act, subsection (a) or (b) of Section 3-10 of the Cigarette Tax Act, the Payday Loan Reform Act, subsection (a) or (b) of Section 3-10 of the Cigarette Use Tax Act, the Electronic Mail Act, the Internet Caller Identification Act, paragraph (6) of subsection (k) of Section 6-305 of the Illinois Vehicle Code, Section 18d-115, 18d-120, 18d-125, 18d-135, or 18d-150 of the Illinois Vehicle Code, Article 3 of the Residential Real Property Disclosure Act, the Automatic Contract Renewal Act, or the Personal Information Protection Act, or the Pharmaceutical Consumer Protection Act commits an unlawful practice within the meaning of this Act.

(Source: P.A. 94-13, eff. 12-6-05; 94-36, eff. 1-1-06; 94-280, eff. 1-1-06; 94-292, eff. 1-1-06; 94-822, eff. 1-1-07; 95-413, eff. 1-1-08; 95-562, eff. 7-1-08; revised 10-17-07.)

Section 95. No acceleration or delay. Where this Act makes changes in a statute that is represented in this Act by text that is not yet or no longer in effect (for example, a Section represented by multiple versions), the use of that text does not accelerate or delay the taking effect of (i) the changes made by this Act or (ii) provisions derived from any other Public Act.

Section 99. Effective date. This Act takes effect upon becoming law.