SB3614 100TH GENERAL ASSEMBLY

LRB100 22100 RPS 40392 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB3614

Introduced 5/22/2018, by Sen. James F. Clayborne, Jr.

SYNOPSIS AS INTRODUCED:

110 ILCS 330/8b new

Amends the University of Illinois Hospital Act. Provides that the Board of Trustees of the University of Illinois shall require all pharmaceutical manufacturers that have contracts with the University of Illinois Hospital to submit an annual report to the Board of Trustees of the University of Illinois and the Illinois Health Facilities and Services Review Board, by April 15, 2019 and every April 15 thereafter, in a searchable Adobe PDF format, on all procurement goals and actual spending for women-owned, minority-owned, veteran-owned, and small business enterprises in the previous calendar year. Provides that the goals shall be expressed as a percentage of the total work performed by the entity submitting the report, and the actual spending for all women-owned, minority-owned, veteran-owned, and small business enterprises shall also be expressed as a percentage of the total work performed by the entity submitting the report. Provides that the annual report must contain specified information. Provides that beginning April 15, 2019, no contract, oral or written, shall be awarded by the Board of Trustees of the University of Illinois to a pharmaceutical manufacturer without first requiring the pharmaceutical manufacturer to make specified disclosures. Defines "pharmaceutical manufacturer" and "prescription drug". Provides that the Illinois Health Facilities and Services Review Board shall publish each annual report on its website and shall maintain each annual report for at least 5 years. Effective January 1, 2019.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning regulation.

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

Section 5. The University of Illinois Hospital Act is amended by adding Section 8b as follows:

(110 ILCS 330/8b new)

Sec. 8b. Pharmaceutical manufacturer diversity goals.

(a) The public policy of this State is to collaboratively work with companies that serve Illinois residents to improve their supplier diversity in a non-antagonistic manner.

(b) As used in this Section:

"Pharmaceutical manufacturer" includes:

(1) An entity that is engaged in (a) the production, preparation, propagation, compounding, conversion, or processing of prescription drug products (i) directly or indirectly by extraction from substances of natural origin, (ii) independently by means of chemical synthesis, or (iii) by combination of extraction and chemical synthesis; or (b) the packaging, repackaging, labeling or re-labeling, or distribution of prescription drug products.

(2) The entity holding legal title to or possession of the national drug code number for the covered prescription drug.

"Pharmaceutical manufacturer" does not include a wholesale distributor of drugs, drugstore chain organization, or retail pharmacy licensed by the State.

"Prescription drug" means a drug that may be dispensed only upon prescription by an authorized prescriber and that is approved for safety and effectiveness as a prescription drug under Section 505 or 507 of the Federal Food, Drug, and Cosmetic Act.

(c) The Board of Trustees of the University of Illinois shall require all pharmaceutical manufacturers that have contracts with the University of Illinois Hospital to submit an annual report to the Board of Trustees of the University of Illinois and the Illinois Health Facilities and Services Review Board, by April 15, 2019 and every April 15 thereafter, in a searchable Adobe PDF format, on all procurement goals and actual spending for women-owned, minority-owned, veteran-owned, and small business enterprises in the previous calendar year. These goals shall be expressed as a percentage of the total work performed by the entity submitting the report, and the actual spending for all women-owned, minority-owned, veteran-owned, and small business enterprises shall also be expressed as a percentage of the total work performed by the entity submitting the report.

(d) Each pharmaceutical manufacturer in its annual report shall include the following information:

(1) an explanation of the plan for the next year to increase participation;

(2) an explanation of the plan to increase the goals;

(3) the areas of procurement each pharmaceutical manufacturer will be actively seeking more participation in in the next year;

(4) an outline of the plan to alert and encourage potential vendors in that area to seek business from the pharmaceutical manufacturer;

(5) an explanation of the challenges faced in finding quality vendors and offer any suggestions for what the Board of Trustees of the University of Illinois could do to be helpful to identify those vendors;

(6) a list of the certifications the pharmaceutical manufacturer recognizes;

(7) the point of contact for any potential vendor who wishes to do business with the pharmaceutical manufacturer and an explanation of the process for a vendor to enroll with the company as a minority-owned, women-owned, or veteran-owned company; and

(8) any particular success stories to encourage other pharmaceutical manufacturers to emulate best practices.

(e) Each annual report shall include as much State-specific data as possible. If the pharmaceutical manufacturer does not submit State-specific data, then the pharmaceutical manufacturer shall include any national data it does have and explain why it could not submit State-specific data and how it intends to do so in future reports, if possible.

(f) Each annual report shall include the rules, regulations, and definitions used for the procurement goals in the pharmaceutical manufacturer's annual report.

(g) The Illinois Health Facilities and Services Review Board shall publish each annual report on its website and shall maintain each annual report for at least 5 years.

(h) Beginning April 15, 2019, no contract, oral or written, shall be awarded by the Board of Trustees of the University of Illinois to a pharmaceutical manufacturer without first requiring the pharmaceutical manufacturer to make the disclosures required in subsection (c).

Section 99. Effective date. This Act takes effect January 1, 2019.