BILL REQ. #:  H-0470.2 

Read first time 01/20/2003.   Referred to Committee on Health Care.

     AN ACT Relating to reporting of prescription drug pricing; adding a new section to chapter 41.05 RCW; and prescribing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   A new section is added to chapter 41.05 RCW to read as follows:
     (1) As used in this section:
     (a) "Average manufacturer price" has the meaning assigned by 42 U.S.C. Sec. 1396r-8(k), as amended; and
     (b) "Pharmaceutical manufacturing company" means any entity that is engaged in the production, preparation, propagation, compounding, conversion, or processing of prescription drugs, either directly or indirectly by extraction from substances of natural origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, or any entity engaged in the packaging, repackaging, labeling, relabeling, or distribution of prescription drugs. "Pharmaceutical manufacturing company" does not include a wholesale drug distributor or pharmacist licensed under chapter 18.64 RCW.
     (2) A pharmaceutical manufacturing company, including a pharmaceutical manufacturing company who manufactures a generic drug that is sold in this state, shall file with the administrator, upon the request of the administrator:
     (a) The average manufacturer price for the requested prescription drug or drugs; and
     (b) The price that each wholesaler in this state pays the manufacturer to purchase the requested prescription drug or drugs. The information required under this subsection must be filed annually or more frequently as determined by the administrator.
     (3) At the administrator's request, a person who engages in the wholesale distribution of prescription drugs in this state shall file with the administrator information showing the actual price at which the wholesale distributor sells a particular drug to a retail pharmacy.
     (4) The department and the attorney general may investigate a pharmaceutical manufacturing company or a person who engages in the wholesale distribution of prescription drugs to determine the accuracy of the information provided under subsection (2) or (3) of this section. The attorney general may bring an action for injunctive relief, costs, and attorneys' fees, and to impose on a pharmaceutical manufacturing company that fails to file as required by this section, or files inaccurate information, a civil penalty of not more than ten thousand dollars per violation. Each unlawful failure to file, or filing of inaccurate information, constitutes a separate violation.
     (5) The administrator may not disclose information that identifies a specific manufacturer or wholesaler or the prices charged by a specific manufacturer or wholesaler for a specific pharmaceutical to any entity other than a state purchased health care program or a committee created to facilitate the development, acquisition, or implementation of state purchased health care under this chapter. This information must be protected from further disclosure as provided in RCW 41.05.026.
     (6) The administrator may adopt rules to implement this section.