Senate Introduced Bill B01517

Health; pharmaceuticals; financial disclosure by pharmaceutical

companies regarding certain sales techniques; require.

HEALTH: Pharmaceuticals; HUMAN SERVICES: Medical services

A bill to amend 1978 PA 368, entitled

"Public health code,"

(MCL 333.1101 to 333.25211) by adding sections 17748a, 17748b,

17748c, 17748d, 17748e, 17748f, 17748g, 17748h, 17748i, 17748j,

17748k, 17748l, 17748m, 17748n, 17748o, 17748p, 17748q, 17748r,

17748s, 17748t, and 17748u.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 SEC. 17748A. AS USED IN THIS SECTION AND IN SECTIONS 17748B

2 TO 17748U:

3 (A) "AGENT" MEANS A PERSON WHO ENGAGES IN A REGULATED ACTIV-

4 ITY ON BEHALF OF ANOTHER PERSON. AGENT INCLUDES AN OUTSIDE

5 SALESPERSON, SALES REPRESENTATIVE, PHARMACEUTICAL REPRESENTATIVE,

6 DETAILER, MEDICAL EDUCATION AND COMMUNICATIONS COMPANY, SALES

7 AGENT, SALES SPECIALIST, ACCOUNT EXECUTIVE, OR ACCOUNT MANAGER.

8 AGENT INCLUDES A DISTRIBUTOR, DISPENSER, OR PRESCRIBER WHEN

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1 ACTING FOR A MANUFACTURER OR AN AGENT. AGENT DOES NOT INCLUDE

2 THE FOLLOWING:

3 (i) A COMMON OR CONTRACT CARRIER, WAREHOUSER, OR EMPLOYEE OF

4 THE CARRIER OR WAREHOUSER.

5 (ii) A PUBLISHER, OWNER, OR WORKING MEMBER OF THE PRESS,

6 RADIO, OR TELEVISION WHILE DISSEMINATING NEWS OR EDITORIAL COM-

7 MENT TO THE GENERAL PUBLIC IN THE ORDINARY COURSE OF BUSINESS.

8 (iii) AN ELECTED OR APPOINTED PUBLIC OFFICIAL OF STATE OR

9 LOCAL GOVERNMENT WHO IS ACTING IN THE COURSE OR SCOPE OF THE

10 OFFICE FOR NO COMPENSATION, OTHER THAN THAT PROVIDED BY LAW FOR

11 THE OFFICE.

12 (B) "BUSINESS" MEANS A CORPORATION, PARTNERSHIP, SOLE PRO-

13 PRIETORSHIP, FIRM, ENTERPRISE, FRANCHISE, ASSOCIATION, ORGANIZA-

14 TION, SELF-EMPLOYED INDIVIDUAL, HOLDING COMPANY, JOINT STOCK COM-

15 PANY, RECEIVERSHIP, TRUST, ACTIVITY, OR ENTITY THAT IS ORGANIZED

16 FOR PROFIT OR NONPROFIT PURPOSES.

17 (C) "BUSINESS WITH WHICH THE PRESCRIBER IS ASSOCIATED" MEANS

18 A BUSINESS IN WHICH ANY OF THE FOLLOWING APPLY:

19 (i) THE PRESCRIBER IS A PARTNER, DIRECTOR, OFFICER, OR

20 EMPLOYER.

21 (ii) A MEMBER OF THE PRESCRIBER'S IMMEDIATE FAMILY IS A

22 PARTNER, DIRECTOR, OFFICER, OR EMPLOYER.

23 (iii) THE PRESCRIBER OR A MEMBER OF THE PRESCRIBER'S IMMEDI-

24 ATE FAMILY IS A STOCKHOLDER OF CLOSE CORPORATION STOCK WORTH

25 $1,000.00 OR MORE AT FAIR MARKET VALUE OR WHICH REPRESENTS MORE

26 THAN 5% EQUITY INTEREST, OR IS A STOCKHOLDER OF PUBLICLY TRADED

27 STOCK WORTH $10,000.00 OR MORE AT FAIR MARKET VALUE OR WHICH

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1 REPRESENTS MORE THAN 10% EQUITY INTEREST. THIS SUBDIVISION DOES

2 NOT APPLY TO PUBLICLY TRADED STOCK UNDER A TRADING ACCOUNT IF THE

3 FILER REPORTS THE NAME AND ADDRESS OF THE STOCKBROKER.

4 (D) "COMPENSATION" MEANS A PAYMENT OF MONEY, OBJECTS, SERV-

5 ICES, OR ANYTHING OF MONETARY VALUE RECEIVED OR TO BE RECEIVED

6 FROM A PERSON, WHETHER IN THE FORM OF A FEE, SALARY, FORBEARANCE,

7 FORGIVENESS, OR ANOTHER FORM OF RECOMPENSE.

8 (E) "DEPARTMENT" MEANS THE DEPARTMENT OF CONSUMER AND INDUS-

9 TRY SERVICES OR A SUCCESSOR DEPARTMENT.

10 (F) "EXPENDITURE" MEANS COMPENSATION FOR LABOR OR AN

11 ADVANCE, HONORARIUM, SPEAKER'S FEE, CONVEYANCE, GIFT, DEPOSIT,

12 DISTRIBUTION, TRANSFER OF MONEY, LOAN, PAYMENT, PLEDGE, SUBSCRIP-

13 TION OF MONEY, OR ANYTHING OF VALUE, INCLUDING A CONTRACT, AGREE-

14 MENT, PROMISE, OR OTHER OBLIGATION, WHETHER OR NOT LEGALLY

15 ENFORCEABLE.

16 (G) "FINANCIAL TRANSACTION" MEANS A PURCHASE, SALE, OR OTHER

17 TYPE OF TRANSFER OR EXCHANGE OF MONEY, GOODS, OTHER PROPERTY, OR

18 SERVICES FOR CONSIDERATION OF SUBSTANTIALLY EQUAL OR GREATER

19 VALUE.

20 (H) "GIFT" MEANS A PAYMENT, ADVANCE, FORBEARANCE, LOAN, OR

21 THE TENDERING OR DEPOSIT OF MONEY, SERVICES, OR ANYTHING OF

22 VALUE, THE CUMULATIVE VALUE OF WHICH EXCEEDS $47.00 IN ANY 1

23 MONTH PERIOD, UNLESS CONSIDERATION OF EQUAL OR GREATER VALUE IS

24 RECEIVED. GIFT DOES NOT INCLUDE:

25 (i) ANYTHING OF VALUE RECEIVED FROM A MEMBER OF THE

26 RECIPIENT'S IMMEDIATE FAMILY, A RELATIVE, OR A RELATIVE OF A

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1 SPOUSE, WITHIN THE SEVENTH DEGREE OF CONSANGUINITY AS COMPUTED BY

2 THE CIVIL LAW METHOD, OR THE SPOUSE OF SUCH A RELATIVE.

3 (ii) A BREAKFAST, LUNCHEON, DINNER, OR OTHER REFRESHMENT

4 CONSISTING OF FOOD AND BEVERAGE PROVIDED FOR IMMEDIATE

5 CONSUMPTION.

6 (I) "IMMEDIATE FAMILY" MEANS AN INDIVIDUAL'S CHILD RESIDING

7 IN THE INDIVIDUAL'S HOUSEHOLD, A SPOUSE OF AN INDIVIDUAL, OR AN

8 INDIVIDUAL CLAIMED BY THAT INDIVIDUAL OR THAT INDIVIDUAL'S SPOUSE

9 AS A DEPENDENT FOR FEDERAL INCOME TAX PURPOSES.

10 (J) "LOAN" MEANS A TRANSFER OF MONEY, PROPERTY, OR ANYTHING

11 OF ASCERTAINABLE VALUE IN EXCHANGE FOR AN OBLIGATION, CONDITIONAL

12 OR NOT, TO REPAY IN WHOLE OR IN PART. LOAN DOES NOT INCLUDE A

13 TRANSFER MADE IN THE NORMAL COURSE OF BUSINESS BY AN INSTITUTION

14 AS DEFINED IN SECTION 1202 OF THE BANKING CODE OF 1999, 1999

15 PA 276, MCL 487.11202, A NATIONAL BANK, A BRANCH BANK, AN INSUR-

16 ANCE COMPANY ISSUING A LOAN OR RECEIVING A MORTGAGE IN THE NORMAL

17 COURSE OF BUSINESS, A PREMIUM FINANCE COMPANY, A MORTGAGE COM-

18 PANY, A SMALL LOAN COMPANY, A STATE OR FEDERAL CREDIT UNION, A

19 SAVINGS AND LOAN ASSOCIATION CHARTERED BY THIS STATE OR THE FED-

20 ERAL GOVERNMENT, OR A LICENSEE AS DEFINED BY SECTION 2 OF THE

21 MOTOR VEHICLES SALES FINANCE ACT, 1950 (EX SESS) PA 27,

22 MCL 492.102.

23 (K) "MANUFACTURER" MEANS A PERSON THAT PREPARES, PRODUCES,

24 DERIVES, PROPAGATES, COMPOUNDS, PROCESSES, PACKAGES, OR REPACK-

25 AGES A CONTROLLED SUBSTANCE OR A DRUG OR DEVICE SALABLE ON PRE-

26 SCRIPTION ONLY, OR OTHERWISE CHANGES THE CONTAINER OR THE

27 LABELING OF A CONTROLLED SUBSTANCE OR A DRUG OR DEVICE SALABLE ON

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1 PRESCRIPTION ONLY, AND THAT SUPPLIES, DISTRIBUTES, SELLS, OFFERS

2 FOR SALE, BARTERS, OR OTHERWISE DISPOSES OF THAT CONTROLLED SUB-

3 STANCE OR DRUG OR DEVICE SALABLE ON PRESCRIPTION ONLY TO ANOTHER

4 PERSON FOR RESALE, COMPOUNDING, OR DISPENSING.

5 (l) "PRESCRIBER" MEANS, IN ADDITION TO AN INDIVIDUAL

6 INCLUDED IN SECTION 17708(2), ALL OF THE FOLLOWING:

7 (i) AN EMPLOYEE OF A BUSINESS WITH WHICH AN INDIVIDUAL

8 INCLUDED IN SECTION 17708(2) IS ASSOCIATED.

9 (ii) AN IMMEDIATE FAMILY MEMBER OF AN INDIVIDUAL INCLUDED IN

10 SECTION 17708(2).

11 (iii) A BUSINESS WITH WHICH THE MANUFACTURER OR AGENT KNOWS

12 AN INDIVIDUAL INCLUDED IN SECTION 17708(2) IS ASSOCIATED.

13 (M) "REGULATED ACTIVITY" MEANS SALE, OFFER FOR SALE, PROMO-

14 TION, DETAILING, RECOMMENDATION OF PURCHASE, INFORMATIONAL CON-

15 TACT, COMMUNICATION FOR THE PURPOSE OF INDUCING A SALE, OR SIMI-

16 LAR CONDUCT CONCERNING A CONTROLLED SUBSTANCE OR A DRUG OR DEVICE

17 SALABLE ON PRESCRIPTION ONLY.

18 SEC. 17748B. NOT LATER THAN 15 DAYS AFTER BECOMING A MANU-

19 FACTURER, THE MANUFACTURER SHALL FILE A REGISTRATION ON A FORM OR

20 IN A MANNER SPECIFIED BY THE DEPARTMENT. THE REGISTRATION SHALL

21 CONTAIN THE FOLLOWING INFORMATION:

22 (A) THE MANUFACTURER'S NAME AND OFFICE ADDRESS.

23 (B) THE NAME AND ADDRESS OF EACH PERSON EMPLOYED, REIMBURSED

24 FOR EXPENSES THAT EXCEED $19.00, OR GIVEN COMPENSATION BY THE

25 MANUFACTURER FOR PERFORMING A REGULATED ACTIVITY IN THIS STATE.

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1 (C) THE NAME, ADDRESS, AND NATURE OF BUSINESS OF EACH PERSON

2 THAT GIVES COMPENSATION TO THE MANUFACTURER OR THE AGENT OF A

3 MANUFACTURER FOR REGULATED ACTIVITIES.

4 (D) THE FISCAL YEAR OF THE MANUFACTURER.

5 SEC. 17748C. NOT LATER THAN 3 DAYS AFTER BECOMING AN AGENT,

6 THE AGENT SHALL FILE A REGISTRATION ON A FORM OR IN A MANNER

7 SPECIFIED BY THE DEPARTMENT. THE REGISTRATION SHALL CONTAIN THE

8 FOLLOWING INFORMATION:

9 (A) IF THE AGENT IS NOT AN INDIVIDUAL, THE AGENT'S NAME AND

10 OFFICE ADDRESS.

11 (B) IF THE AGENT IS AN INDIVIDUAL, THE AGENT'S NAME, PER-

12 MANENT RESIDENCE ADDRESS, AND OFFICE ADDRESS.

13 (C) THE NAME AND ADDRESS OF EACH PERSON EMPLOYED, REIMBURSED

14 FOR EXPENSES THAT EXCEED $19.00, OR GIVEN COMPENSATION BY THE

15 AGENT FOR A REGULATED ACTIVITY IN THIS STATE.

16 (D) THE NAME, ADDRESS, AND NATURE OF BUSINESS OF EACH PERSON

17 WHO GIVES COMPENSATION TO OR REIMBURSES THE AGENT OR THE REPRE-

18 SENTATIVE OF AN AGENT FOR REGULATED ACTIVITIES.

19 SEC. 17748D. A MANUFACTURER OR AGENT THAT FAILS TO REGISTER

20 UNDER SECTION 17748B OR 17748C SHALL PAY A LATE REGISTRATION FEE

21 OF $19.00 FOR EACH DAY THE MANUFACTURER OR AGENT REMAINS NOT REG-

22 ISTERED IN VIOLATION OF SECTION 17748B OR 17748C, NOT TO EXCEED

23 $570.00. IN ADDITION TO THE LATE REGISTRATION FEE, A MANUFAC-

24 TURER OR AGENT THAT FAILS TO REGISTER UNDER SECTION 17748B OR

25 17748C FOR MORE THAN 30 DAYS IS GUILTY OF A MISDEMEANOR PUNISH-

26 ABLE BY A FINE OF NOT MORE THAN $1,000.00.

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1 SEC. 17748E. A PERSON REQUIRED TO REGISTER UNDER

2 SECTION 17748B OR 17748C SHALL FILE A NOTICE OF TERMINATION WITH

3 THE DEPARTMENT WITHIN 30 DAYS AFTER CEASING REGULATED

4 ACTIVITIES. FILING A TERMINATION NOTICE DOES NOT RELEASE THE

5 PERSON REQUIRED TO REGISTER UNDER SECTION 17748B OR 17748C FROM

6 THE REPORTING REQUIREMENTS FOR THAT REPORTING PERIOD. AN AGENT

7 SHALL FILE A NOTICE OF TERMINATION WITH THE DEPARTMENT WITHIN 30

8 DAYS AFTER ANY AGENCY RELATIONSHIP IS TERMINATED, CONCERNING THE

9 TERMINATED AGENCY RELATIONSHIP.

10 SEC. 17748F. (1) A MANUFACTURER, OR AN AGENT ON BEHALF OF A

11 MANUFACTURER, SHALL FILE A SIGNED REPORT ON A FORM OR IN A MANNER

12 SPECIFIED BY THE DEPARTMENT. A REPORT SHALL BE FILED ON OR

13 BEFORE AUGUST 31 COVERING THE 6 MONTHS ENDING ON JULY 31 AND ON

14 OR BEFORE JANUARY 31 COVERING THE ENTIRE CALENDAR YEAR ENDING ON

15 THE IMMEDIATELY PRECEDING DECEMBER 31.

16 (2) A MANUFACTURER OR AGENT MAY REQUEST FROM THE DEPARTMENT

17 AN EXTENSION OF THE DEADLINE FOR FILING A REPORT UNDER

18 SUBSECTION (1) FOR A PERIOD NOT TO EXCEED 60 DAYS. WITHIN 9 DAYS

19 AFTER RECEIPT OF A REQUEST, THE DEPARTMENT SHALL RESPOND IN WRIT-

20 ING, EITHER APPROVING OR DISAPPROVING THE EXTENSION. IF

21 APPROVED, THE DEPARTMENT SHALL INCLUDE IN ITS RESPONSE THE PERIOD

22 OF THE EXTENSION. A MANUFACTURER OR AGENT MAY FILE AN AMENDED

23 REPORT WITHIN 1 YEAR AFTER THE FILING DEADLINE, INCLUDING AN

24 EXTENSION PERIOD.

25 SEC. 17748G. A REPORT REQUIRED UNDER SECTION 17748F SHALL

26 BE SUBMITTED ON A FORM OR IN A MANNER SPECIFIED BY THE

27 DEPARTMENT. THE REPORT SHALL INCLUDE AN ACCOUNT OF EACH

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1 EXPENDITURE MADE BY THE MANUFACTURER AND AGENT. THE EXPENDITURES

2 SHALL BE GROUPED BY PRESCRIBER AND SHALL BE REPORTED BY CATEGORY,

3 WITH THE REPORT SHOWING THE TOTAL AMOUNT EXPENDED IN EACH CATE-

4 GORY DURING THE PRECEDING REPORTING PERIOD AND THE CUMULATIVE

5 AMOUNT EXPENDED IN EACH CATEGORY FOR THE CURRENT YEAR FROM

6 JANUARY 1 THROUGH THE MONTH COVERED BY THE REPORT. EXPENDITURES

7 SHALL BE REPORTED IN THE FOLLOWING CATEGORIES:

8 (A) EXPENDITURES FOR FOOD, BEVERAGES, AND ENTERTAINMENT PRO-

9 VIDED FOR PRESCRIBERS.

10 (B) EXPENDITURES MADE OR INCURRED BY A MANUFACTURER OR AN

11 AGENT, OTHER THAN EXPENDITURES MADE OR INCURRED BY A MANUFACTURER

12 OR AN AGENT OF LESS THAN $10.00 MADE FOR OR ON BEHALF OF A PRE-

13 SCRIBER FOR GOODS OR SERVICES FOR WHICH A RECEIPT OR PROOF OF

14 PURCHASE IS NOT NORMALLY AVAILABLE.

15 (C) EXPENDITURES DURING THE IMMEDIATELY PRECEDING REPORTING

16 PERIOD BY THE MANUFACTURER OR AGENT FOR OR ON BEHALF OF A PRE-

17 SCRIBER THAT INVOLVED GOODS OR SERVICES HAVING A VALUE OF AT

18 LEAST $950.00 OR THAT INVOLVED TRAVEL OR LODGING EXPENSES PAID

19 FOR OR REIMBURSED TO A PRESCRIBER IN EXCESS OF $625.00. THE

20 ACCOUNT SHALL INCLUDE THE DATE AND NATURE OF THE EXPENDITURE, THE

21 PARTIES TO THE TRANSACTION, AND THE AMOUNT INVOLVED.

22 SEC. 17748H. SECTIONS 17748F AND 17748G DO NOT APPLY TO THE

23 FOLLOWING:

24 (A) A FINANCIAL TRANSACTION UNDERTAKEN IN THE ORDINARY

25 COURSE OF THE MANUFACTURER'S BUSINESS, UNLESS THE MANUFACTURER

26 GIVES THE PRESCRIBER A PREFERENTIAL INTEREST RATE, PAYMENT DUE

27 DATE, OR TIME PRICE DIFFERENTIAL SOLELY BECAUSE THE PRESCRIBER IS

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1 USING OR ORDERING A SPECIFIC CONTROLLED SUBSTANCE OR DRUG OR

2 DEVICE SALABLE ON PRESCRIPTION ONLY.

3 (B) THE GIVING OF COMPLIMENTARY STARTER DOSES.

4 SEC. 17748I. (1) FOR TRAVEL OR LODGING EXPENSES DESCRIBED

5 IN SECTION 17748G, THE MANUFACTURER OR AGENT SHALL PREPARE A SEP-

6 ARATE DOCUMENT LISTING THE EXPENDITURES. SIMULTANEOUSLY WITH THE

7 FILING OF THE REPORT TO THE DEPARTMENT, THE MANUFACTURER OR AGENT

8 SHALL SEND A COPY OF THE DOCUMENT TO THE AFFECTED PRESCRIBER.

9 (2) EXPENDITURES FOR FOOD, BEVERAGES, AND ENTERTAINMENT PRO-

10 VIDED A PRESCRIBER SHALL BE REPORTED IF THE EXPENDITURES FOR THAT

11 PRESCRIBER EXCEED $47.00 IN ANY MONTH COVERED BY THE REPORT OR

12 $300.00 DURING THAT CALENDAR YEAR BEGINNING JANUARY 1 THROUGH THE

13 MONTH COVERED BY THE REPORT. THE REPORT SHALL INCLUDE THE NAME

14 AND OFFICE ADDRESS OF THE PRESCRIBER AND THE EXPENDITURES FOR

15 THAT PRESCRIBER FOR THE YEAR. IF MORE THAN 1 PRESCRIBER IS PRO-

16 VIDED FOOD, BEVERAGES, AND ENTERTAINMENT FOR MONTHS COVERED BY

17 THE REPORT AND A SINGLE PAYMENT IS MADE, THE REPORT MAY REFLECT

18 THE AVERAGE AMOUNT OF THE PAYMENT FOR EACH PRESCRIBER.

19 (3) IF THE EXPENDITURES ARE FOR AN EVENT THAT MORE THAN 25

20 PRESCRIBERS ATTENDED OR AN EVENT TO WHICH AN IDENTIFIABLE GROUP

21 OF PRESCRIBERS WERE INVITED, THE EXPENDITURES SHALL BE REPORTED,

22 GROUPED BY EVENT, IF THE TOTAL EXPENDITURES EXCEED $475.00 IN ANY

23 MONTH COVERED BY THE REPORT OR $1,000.00 DURING THAT CALENDAR

24 YEAR FROM JANUARY 1 THROUGH THE MONTH COVERED BY THE REPORT. A

25 MANUFACTURER OR AN AGENT SHALL REPORT THE TOTAL AMOUNT EXPENDED

26 ON THE GROUP OF PRESCRIBERS IN ATTENDANCE FOR FOOD, BEVERAGES,

27 AND ENTERTAINMENT AND IS NOT REQUIRED TO REPORT THE AMOUNT

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1 EXPENDED ON THE PRESCRIBERS INDIVIDUALLY. IN REPORTING THOSE

2 AMOUNTS, THE MANUFACTURER OR AGENT SHALL PROVIDE A DESCRIPTION BY

3 CATEGORY OF THE PERSONS IN ATTENDANCE AND THE NATURE OF EACH

4 EVENT OR FUNCTION HELD DURING THE PRECEDING REPORTING PERIOD.

5 (4) IF AN AGENT EMPLOYS ANOTHER AGENT TO ENGAGE IN REGULATED

6 ACTIVITIES, THE ACTIVITIES OF THE EMPLOYEE AGENT SHALL BE

7 REPORTED BY THE EMPLOYER AGENT UNDER THIS SECTION.

8 SEC. 17748J. THE DEPARTMENT SHALL PRESERVE A REPORT FILED

9 UNDER SECTION 17748F FOR 5 YEARS AFTER FILING. A REPORT MAY BE

10 REPRODUCED AS AUTHORIZED IN THE RECORDS MEDIA ACT, 1992 PA 116,

11 MCL 24.401 TO 24.403. AFTER THE REQUIRED PRESERVATION PERIOD, A

12 REPORT, OR A REPRODUCTION OF THE REPORT, OTHER THAN THOSE NECES-

13 SARY TO COMPLETE AN INVESTIGATION BY THE ATTORNEY GENERAL OR PER-

14 TINENT TO A MATTER BEING ADJUDICATED IN A COURT OF LAW, OR OTHER-

15 WISE REQUIRED BY LAW TO BE RETAINED, SHALL BE DESTROYED.

16 SEC. 17748K. (1) INFORMATION COPIED FROM ANY OF THE FOLLOW-

17 ING SHALL NOT BE SOLD OR UTILIZED FOR A COMMERCIAL PURPOSE:

18 (A) A REGISTRATION FORM REQUIRED BY SECTION 17748B OR

19 17748C.

20 (B) A REPORT REQUIRED BY SECTION 17748F.

21 (C) A LIST COMPILED FROM THE FORMS OR REPORTS.

22 (2) A PERSON WHO VIOLATES THIS SECTION IS SUBJECT TO A CIVIL

23 PENALTY OF NOT MORE THAN $1,000.00.

24 SEC. 17748l. (1) A MANUFACTURER OR AN AGENT SHALL OBTAIN

25 AND PRESERVE ACCOUNTS, BILLS, RECEIPTS, BOOKS, PAPERS, AND DOCU-

26 MENTS NECESSARY TO SUBSTANTIATE A REPORT REQUIRED BY SECTION

27 17748F FOR 5 YEARS AFTER THE REPORT IS FILED. THE MANUFACTURER

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1 OR AGENT SHALL MAKE THESE RECORDS AVAILABLE FOR INSPECTION UPON

2 REQUEST BY THE DEPARTMENT AFTER REASONABLE NOTICE. THE RECORDS

3 SHALL INCLUDE THE FOLLOWING:

4 (A) AN ACCOUNT OF EACH EXPENDITURE MADE TO OR FOR A

5 PRESCRIBER. A SINGLE EXPENDITURE OF $100.01 OR MORE SHALL BE

6 RECORDED SEPARATELY WITH THE RECORD SHOWING THE DATE, PURPOSE,

7 AND NAME AND ADDRESS OF THE RECIPIENT OF THE EXPENDITURE.

8 (B) AN ITEMIZED ACCOUNT OF EACH EXPENDITURE FOR FOOD, BEVER-

9 AGES, AND ENTERTAINMENT PROVIDED FOR A PRESCRIBER. THE ACCOUNT

10 SHALL STATE THE DATE AND AMOUNT OF EACH EXPENDITURE, THE NAME AND

11 TITLE OF THE PRESCRIBER FOR WHOM THE EXPENDITURE WAS MADE, AND

12 THE NAME OF THE AGENT WHO PURCHASED THE FOOD, BEVERAGES, OR

13 ENTERTAINMENT FOR THE PRESCRIBER. IF, HOWEVER, MORE THAN 1 PRE-

14 SCRIBER IS PROVIDED FOOD, BEVERAGES, AND ENTERTAINMENT AND PAY-

15 MENT IS MADE THROUGH AN UNDIVIDED TRANSACTION, THE ACCOUNT MAY

16 REFLECT THE AVERAGE AMOUNT EXPENDED FOR EACH PRESCRIBER.

17 (C) THE AMOUNT EXPENDED FOR FOOD, BEVERAGES, AND ENTERTAIN-

18 MENT FOR PRESCRIBERS AT AN EVENT THAT MORE THAN 25 PRESCRIBERS

19 ATTENDED OR AN EVENT TO WHICH AN IDENTIFIABLE GROUP OF PRESCRIB-

20 ERS WERE INVITED. THE RECORD SHALL NOT LIST THE EXPENDITURES FOR

21 PRESCRIBERS INDIVIDUALLY. THE MANUFACTURER SHALL RECORD THE

22 NAMES OF EACH PRESCRIBER THAT ACTUALLY ATTENDED AND THE NATURE OF

23 EACH EVENT HELD.

24 (2) AN INDIVIDUAL WHO VIOLATES THIS SECTION IS GUILTY OF A

25 MISDEMEANOR PUNISHABLE BY A FINE OF NOT MORE THAN $1,000.00 OR

26 IMPRISONMENT FOR NOT MORE THAN 90 DAYS, OR BOTH. A PERSON OTHER

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1 THAN AN INDIVIDUAL WHO VIOLATES THIS SECTION IS GUILTY OF A

2 MISDEMEANOR PUNISHABLE BY A FINE OF NOT MORE THAN $10,000.00.

3 SEC. 17748M. A PERSON WHO, WITHOUT GOOD CAUSE, FAILS TO

4 REPORT UNDER SECTION 17748F SHALL PAY A LATE FILING FEE OF $19.00

5 FOR EACH DAY THE REPORT REMAINS NOT FILED, NOT TO EXCEED

6 $570.00. IN ADDITION TO THE LATE FILING FEE, A PERSON WHO, WITH-

7 OUT GOOD CAUSE, IS IN VIOLATION MORE THAN 30 DAYS IS GUILTY OF A

8 MISDEMEANOR PUNISHABLE BY A FINE OF NOT MORE THAN $1,000.00.

9 SEC. 17748N. (1) AN AGENT WHO IS COMPENSATED, REIMBURSED,

10 OR OTHERWISE EMPLOYED BY A MANUFACTURER FOR PERFORMING A REGU-

11 LATED ACTIVITY SHALL PROVIDE TO THE EMPLOYING MANUFACTURER A FULL

12 ACCOUNTING OF EACH REGULATED ACTIVITY AND EXPENDITURE REQUIRED TO

13 BE REPORTED UNDER THE REGISTRATION, REPORTING, AND RECORD-KEEPING

14 REQUIREMENTS OF SECTIONS 17748B TO 17748l AT LEAST 10 DAYS BEFORE

15 THE EMPLOYING MANUFACTURER'S REPORT IS DUE TO BE FILED. IF THE

16 AGENT FILES THE REPORT ON BEHALF OF THE MANUFACTURER, THIS

17 ACCOUNTING IS WAIVED.

18 (2) A PERSON WHO VIOLATES THIS SUBSECTION IS GUILTY OF A

19 MISDEMEANOR PUNISHABLE BY A FINE OF NOT MORE THAN $1,000.00.

20 SEC. 17748o. (1) A MANUFACTURER OR AGENT OR ANYONE ACTING

21 ON BEHALF OF A MANUFACTURER OR AGENT SHALL NOT GIVE A GIFT TO A

22 PRESCRIBER.

23 (2) AN INDIVIDUAL WHO GIVES A GIFT IN VIOLATION OF THIS SEC-

24 TION WITH A VALUE OF $3,000.00 OR LESS IS GUILTY OF A MISDEMEANOR

25 PUNISHABLE BY A FINE OF NOT MORE THAN $5,000.00 OR IMPRISONMENT

26 FOR NOT MORE THAN 90 DAYS, OR BOTH. A PERSON OTHER THAN AN

27 INDIVIDUAL SHALL BE FINED NOT MORE THAN $10,000.00.

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1 (3) AN INDIVIDUAL WHO GIVES A GIFT IN VIOLATION OF THIS

2 SECTION WITH A VALUE OF MORE THAN $3,000.00 IS GUILTY OF A FELONY

3 PUNISHABLE BY A FINE OF NOT MORE THAN $10,000.00 OR IMPRISONMENT

4 FOR NOT MORE THAN 3 YEARS, OR BOTH. A PERSON OTHER THAN AN INDI-

5 VIDUAL SHALL BE PUNISHED BY A FINE OF NOT MORE THAN $25,000.00.

6 SEC. 17748P. (1) EFFECTIVE JANUARY 1, 2003 AND EACH YEAR

7 THEREAFTER, THE MONETARY AMOUNTS ESTABLISHED IN SECTIONS 17748A

8 TO 17748o FOR REGISTRATION AND REPORTING THRESHOLDS AND FOR PEN-

9 ALTIES SHALL BE ADJUSTED EACH JANUARY 1 TO REFLECT THE ANNUAL

10 AVERAGE PERCENTAGE INCREASE OR DECREASE IN THE DETROIT CONSUMER

11 PRICE INDEX FOR ALL ITEMS AS REPORTED BY THE UNITED STATES

12 DEPARTMENT OF LABOR. THE ADJUSTMENT FOR EACH YEAR SHALL BE MADE

13 BY COMPARING THE DETROIT CONSUMER PRICE INDEX--ALL ITEMS FOR THE

14 12-MONTH PERIOD ENDING THE PRECEDING AUGUST 30 WITH THE CORRE-

15 SPONDING DETROIT CONSUMER PRICE INDEX OF 1 YEAR EARLIER. THE

16 PERCENTAGE INCREASE OR DECREASE SHALL BE MULTIPLIED BY THE CUR-

17 RENT AMOUNTS. THESE RESULTS SHALL BE ROUNDED UP TO THE NEAREST

18 DOLLAR FOR AMOUNTS ESTABLISHED ON THE EFFECTIVE DATE OF THIS SEC-

19 TION THAT ARE $100.00 OR LESS, AND ROUNDED UP TO THE NEAREST

20 $25.00 FOR AMOUNTS ESTABLISHED ON THE EFFECTIVE DATE OF THIS SEC-

21 TION THAT ARE MORE THAN $100.00, AND ADDED TO OR SUBTRACTED FROM

22 THE CURRENT MONETARY AMOUNTS AS PREVIOUSLY ADJUSTED BY THIS SEC-

23 TION, WHICH SHALL BE THE NEW AMOUNTS FOR THAT YEAR.

24 (2) AN ADJUSTMENT UNDER THIS SECTION APPLIES ONLY TO EXPEN-

25 DITURES OR VIOLATIONS OCCURRING AFTER THE DATE OF THE

26 ADJUSTMENT.

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1 (3) THE DEPARTMENT SHALL DETERMINE AND ANNOUNCE THE ADJUSTED

2 AMOUNTS ON OR BEFORE DECEMBER 15 OF EACH YEAR AND SHALL PROVIDE

3 THEM TO EACH PERSON THAT REQUESTS THEM.

4 (4) IF THE CONSUMER PRICE INDEX IS UNAVAILABLE, THE DEPART-

5 MENT SHALL MAKE A REASONABLE APPROXIMATION.

6 SEC. 17748Q. THE DEPARTMENT SHALL PROMULGATE RULES TO

7 IMPLEMENT SECTIONS 17748A TO 17748U UNDER THE ADMINISTRATIVE PRO-

8 CEDURES ACT OF 1969, 1969 PA 306, MCL 24.201 TO 24.328. SECTIONS

9 17748A TO 17748U SHALL NOT BE ENFORCED UNTIL AFTER THE PROMULGA-

10 TION OF THE RULES REQUIRED BY THIS SECTION.

11 SEC. 17748R. SEMIANNUALLY, THE DEPARTMENT SHALL PREPARE AND

12 PUBLISH SUMMARIES OF REPORTS RECEIVED UNDER THE REGISTRATION,

13 REPORTING, AND RECORD-KEEPING REQUIREMENTS OF SECTIONS 17748B TO

14 17748l. THE SUMMARIES SHALL LIST THE NAME OF EACH MANUFACTURER

15 AND AGENT. THE SUMMARIES SHALL BE GIVEN WIDE PUBLIC

16 DISSEMINATION.

17 SEC. 17748S. (1) THE DEPARTMENT SHALL DETERMINE WHETHER A

18 REPORT THAT IS REQUIRED TO BE FILED IS IN FACT FILED.

19 (2) A REPORT REQUIRED UNDER THE REGISTRATION, REPORTING, AND

20 RECORD-KEEPING REQUIREMENTS OF SECTIONS 17748B TO 17748l SHALL BE

21 FILED NOT LATER THAN 4 P.M. OF THE DAY ON WHICH IT IS REQUIRED TO

22 BE FILED. A REPORT THAT IS POSTMARKED BY CERTIFIED MAIL NOT LESS

23 THAN 2 DAYS BEFORE THE DEADLINE FOR FILING IS CONSIDERED FILED

24 WITHIN THE PRESCRIBED TIME REGARDLESS OF WHEN IT IS ACTUALLY

25 DELIVERED.

26 (3) WITHIN 10 DAYS AFTER THE DEADLINE FOR FILING A REPORT

27 UNDER THE REGISTRATION, REPORTING, AND RECORD-KEEPING

05407'01

1 REQUIREMENTS OF SECTIONS 17748B TO 17748l, THE DEPARTMENT SHALL

2 GIVE NOTICE TO THE FILER BY CERTIFIED MAIL OF AN ERROR OR OMIS-

3 SION IN THE REPORT AND SHALL GIVE NOTICE TO A PERSON WHOM THE

4 DEPARTMENT FINDS PROBABLE CAUSE EXISTS THAT THE PERSON IS

5 REQUIRED TO FILE, BUT WHO HAS FAILED TO FILE, A REPORT. THE

6 DEPARTMENT'S FAILURE TO GIVE NOTICE AS REQUIRED BY THIS SECTION

7 IS NOT A DEFENSE TO A CRIMINAL ACTION AGAINST A PERSON REQUIRED

8 TO FILE.

9 (4) WITHIN 20 DAYS AFTER A REPORT IS REQUIRED TO BE FILED,

10 THE FILER SHALL MAKE NECESSARY CORRECTIONS IN THE REPORT FILED

11 WITH THE DEPARTMENT.

12 (5) AFTER 30 DAYS HAVE EXPIRED AFTER THE DEADLINE FOR FILING

13 A REPORT, THE DEPARTMENT SHALL REPORT ERRORS OR OMISSIONS THAT

14 WERE NOT CORRECTED AND FAILURES TO FILE TO THE ATTORNEY GENERAL.

15 THE DEPARTMENT SHALL MAIL A COPY OF THE NOTICE TO THE ATTORNEY

16 GENERAL TO THE PERSON WHO WAS REQUIRED TO FILE OR WAS REQUIRED TO

17 CORRECT ERRORS OR OMISSIONS.

18 (6) THE DEPARTMENT SHALL CONDUCT INVESTIGATIONS AND 1 OR

19 MORE HEARINGS AS MAY BE NECESSARY TO DETERMINE IF PROBABLE CAUSE

20 EXISTS THAT A VIOLATION OF THE REGISTRATION, REPORTING, GIFT, AND

21 RECORD-KEEPING REQUIREMENTS OF SECTIONS 17748B TO 17748o HAS

22 OCCURRED. A HEARING CONDUCTED UNDER THIS SUBSECTION SHALL BE IN

23 ACCORDANCE WITH THE PROCEDURES SET FORTH IN THE ADMINISTRATIVE

24 PROCEDURES ACT OF 1969, 1969 PA 306, MCL 24.201 TO 24.328.

25 SEC. 17748T. (1) IF THE DEPARTMENT, UPON INVESTIGATION OF A

26 REPORT FILED UNDER THE REGISTRATION, REPORTING, GIFT, AND

27 RECORD-KEEPING REQUIREMENTS OF SECTIONS 17748B TO 17748o,

05407'01

1 DETERMINES THAT THERE IS PROBABLE CAUSE TO BELIEVE A VIOLATION OF

2 THE REGISTRATION, REPORTING, GIFT, AND RECORD-KEEPING REQUIRE-

3 MENTS OF SECTIONS 17748B TO 17748o OCCURRED, THE DEPARTMENT SHALL

4 FORWARD THE RESULTS OF THAT INVESTIGATION TO THE ATTORNEY GENERAL

5 FOR ENFORCEMENT.

6 (2) A SWORN COMPLAINT ALLEGING A VIOLATION OF THE REGISTRA-

7 TION, REPORTING, GIFT, AND RECORD-KEEPING REQUIREMENTS OF SEC-

8 TIONS 17748B TO 17748o SHALL BE FILED WITH THE DEPARTMENT. UPON

9 RECEIPT OF A SWORN COMPLAINT, THE ATTORNEY GENERAL SHALL DETER-

10 MINE WHETHER THERE IS PROBABLE CAUSE THAT THERE WAS A VIOLATION

11 OF THE REGISTRATION, REPORTING, GIFT, AND RECORD-KEEPING REQUIRE-

12 MENTS OF SECTIONS 17748B TO 17748o. NOTICE SHALL BE GIVEN TO A

13 PERSON WITHIN 5 DAYS AFTER A SWORN COMPLAINT IS FILED AGAINST

14 THAT PERSON. NOTICE SHALL INCLUDE A COPY OF THE SWORN

15 COMPLAINT. EVERY 60 DAYS AFTER THE DATE OF A REQUEST FOR AN

16 INVESTIGATION AND UNTIL THE MATTER IS TERMINATED, THE ATTORNEY

17 GENERAL SHALL MAIL TO THE COMPLAINANT AND TO THE ALLEGED VIOLATOR

18 NOTICE OF THE ACTION TAKEN TO DATE BY THE ATTORNEY GENERAL,

19 TOGETHER WITH THE REASONS FOR THE ACTION OR NONACTION. IF IT IS

20 DETERMINED THAT THERE IS NO PROBABLE CAUSE THAT A VIOLATION OF

21 THE REGISTRATION, REPORTING, GIFT, AND RECORD-KEEPING REQUIRE-

22 MENTS OF SECTIONS 17748B TO 17748o DID OCCUR, THE ATTORNEY GEN-

23 ERAL SHALL IMMEDIATELY GIVE NOTICE TO THE COMPLAINANT AND TO THE

24 PERSON PREVIOUSLY GIVEN NOTICE UNDER THIS SECTION.

25 (3) ALL GOVERNMENTAL BODIES SHALL COOPERATE WITH THE DEPART-

26 MENT OF ATTORNEY GENERAL IN THE CONDUCT OF ITS INVESTIGATIONS.

05407'01

1 SEC. 17748U. THE ATTORNEY GENERAL, UPON INVESTIGATION AND

2 DETERMINATION THAT THE REGISTRATION, REPORTING, GIFT, AND

3 RECORD-KEEPING REQUIREMENTS OF SECTIONS 17748B TO 17748o WERE

4 VIOLATED, SHALL DO EITHER OR BOTH OF THE FOLLOWING:

5 (A) INITIATE A CIVIL ACTION TO ENFORCE THE REGISTRATION,

6 REPORTING, AND RECORD-KEEPING REQUIREMENTS OF SECTIONS 17748B TO

7 17748l.

8 (B) BEGIN CRIMINAL PROSECUTION FOR THE IMPOSITION OF CRIMI-

9 NAL PENALTIES.

05407'01 Final page. DGB