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AB68-SSA1,1355,1
12. A description of the type of work in which the applicant will engage.
AB68-SSA1,1355,22 3. The fee under s. 601.31 (1) (nv).
AB68-SSA1,1355,43 4. An attestation that the applicant meets the professional education
4requirements under sub. (3).
AB68-SSA1,1355,55 5. Proof that the applicant has paid any assessed penalties and fees.
AB68-SSA1,1355,66 6. Any other information required by the commissioner.
AB68-SSA1,1355,117 (b) The pharmaceutical representative shall report, in writing, to the
8commissioner any change to the information submitted on the application under par.
9(a) or any material change to the pharmaceutical representative's business
10operations or to any information provided under this section. The report shall be
11made no later than 4 business days after the change or material change occurs.
AB68-SSA1,1355,1312 (c) A pharmaceutical representative shall display his or her license during each
13visit with a health care professional.
AB68-SSA1,1355,18 14(3) Professional education requirements. (a) In order to become initially
15licensed under sub. (2) (a), a pharmaceutical representative shall complete a
16professional education course as determined by the commissioner. A pharmaceutical
17representative shall, upon request, provide the commissioner with proof of the
18coursework's completion.
AB68-SSA1,1355,2219 (b) In order to renew a license under sub. (2) (a), a pharmaceutical
20representative shall complete a minimum of 5 hours of continuing professional
21education courses. A pharmaceutical representative shall, upon request, provide the
22commissioner with proof of the coursework's completion.
AB68-SSA1,1356,223 (c) The professional education coursework required under pars. (a) and (b) shall
24include training in ethical standards, whistleblower protections, laws and rules

1applicable to pharmaceutical marketing, and other areas that the commissioner may
2identify by rule.
AB68-SSA1,1356,43 (d) The commissioner shall regularly designate courses that fulfill the
4requirements under this subsection and publish a list of the designated courses.
AB68-SSA1,1356,95 (e) The professional education coursework required under this subsection may
6not be provided by the employer of a pharmaceutical representative or be funded, in
7any way, by the pharmaceutical industry or a 3rd party funded by the
8pharmaceutical industry. A provider of a course designated under par. (d) shall
9disclose any conflict of interest.
AB68-SSA1,1356,13 10(4) Disclosure to commissioner. (a) No later than June 1 of each year, a
11pharmaceutical representative shall provide to the commissioner, in the manner
12prescribed by the commissioner, all of the following information from the previous
13calendar year:
AB68-SSA1,1356,1614 1. The total number of times the pharmaceutical representative contacted
15health care professionals in this state and the specialties of the health care
16professionals contacted.
AB68-SSA1,1356,2017 2. For each contact with a health care professional in this state, the location and
18duration of the contact, the pharmaceuticals for which the pharmaceutical
19representative provides information, and the value of any item, including a product
20sample, compensation, material, or gift, provided to the health care professional.
AB68-SSA1,1356,2321 (b) The commissioner shall publish the information provided under par. (a) on
22the commissioner's Internet site in a manner in which individual health care
23professionals are not identifiable by name or other identifiers.
AB68-SSA1,1357,4 24(5) Disclosure to health care professionals. During each contact with a
25health care professional, a pharmaceutical representative shall disclose the

1wholesale acquisition cost of any pharmaceutical for which the pharmaceutical
2representative provides information and the names of at least 3 generic prescription
3drugs from the same therapeutic class, or if 3 are not available, as many as are
4available for prescriptive use.
AB68-SSA1,1357,9 5(6) Ethical standards. The commissioner shall promulgate a rule that
6contains ethical standards for pharmaceutical representatives and shall publish the
7ethical standards on the commissioner's Internet site. In addition to the ethical
8standards contained in the rule, a pharmaceutical representative may not do any of
9the following:
AB68-SSA1,1357,1210 (a) Engage in deceptive or misleading marketing of a pharmaceutical,
11including the knowing concealment, suppression, omission, misleading
12representation, or misstatement of a material fact.
AB68-SSA1,1357,1713 (b) Use a title or designation that could reasonably lead a licensed health care
14professional, or an employee or representative of a licensed health care professional,
15to believe that the pharmaceutical representative is licensed to practice medicine,
16nursing, dentistry, optometry, pharmacy, or other similar health occupation in this
17state unless the pharmaceutical representative holds a license to practice.
AB68-SSA1,1357,1818 (c) Attend a patient examination without the patient's consent.
AB68-SSA1,1357,21 19(7) Enforcement. (a) Any individual violating this section shall be fined not
20less than $1,000 nor more than $3,000 for each offense. Each day the violation
21continues shall constitute a separate offense.
AB68-SSA1,1358,222 (b) The commissioner may suspend or revoke the license of a pharmaceutical
23representative who violates this section. A suspended or revoked license may not be
24reinstated until all violations related to the suspension or revocation have been
25remedied and all assessed penalties and fees have been paid. An individual whose

1pharmaceutical representative license is revoked for any cause may not be issued a
2license under sub. (2) (a) until at least 2 years after the date of revocation.
AB68-SSA1,1358,63 (c) A health care professional who meets with a pharmaceutical representative
4who does not display his or her license or share the information required under sub.
5(5) may report the pharmaceutical representative to the commissioner for further
6action.
AB68-SSA1,1358,7 7(8) Rules. The commissioner may promulgate rules to implement this section.
AB68-SSA1,2997 8Section 2997. 632.864 of the statutes is created to read:
AB68-SSA1,1358,10 9632.864 Pharmacy services administrative organizations. (1)
10Definitions. In this section:
AB68-SSA1,1358,1111 (a) “Administrative service” means any of the following:
AB68-SSA1,1358,1212 1. Assisting with claims.
AB68-SSA1,1358,1313 2. Assisting with audits.
AB68-SSA1,1358,1414 3. Providing centralized payment.
AB68-SSA1,1358,1515 4. Performing certification in a specialized care program.
AB68-SSA1,1358,1616 5. Providing compliance support.
AB68-SSA1,1358,1717 6. Setting flat fees for generic drugs.
AB68-SSA1,1358,1818 7. Assisting with store layout.
AB68-SSA1,1358,1919 8. Managing inventory.
AB68-SSA1,1358,2020 9. Providing marketing support.
AB68-SSA1,1358,2121 10. Providing management and analysis of payment and drug dispensing data.
AB68-SSA1,1358,2222 11. Providing resources for retail cash cards.
AB68-SSA1,1358,2523 (b) “Independent pharmacy" means a pharmacy operating in this state that is
24licensed under s. 450.06 or 450.065 and is under common ownership with no more
25than 2 other pharmacies.
AB68-SSA1,1359,1
1(c) “Pharmacy benefit manager” has the meaning given in s. 632.865 (1) (c).
AB68-SSA1,1359,32 (d) “Pharmacy services administrative organization” means an entity
3operating in this state that does all of the following:
AB68-SSA1,1359,54 1. Contracts with an independent pharmacy to conduct business on the
5pharmacy's behalf with a 3rd-party payer.
AB68-SSA1,1359,86 2. Provides at least one administrative service to an independent pharmacy
7and negotiates and enters into a contract with a 3rd-party payer or pharmacy benefit
8manager on behalf of the pharmacy.
AB68-SSA1,1359,119 (e) “Third-party payer” means an entity, including a plan sponsor, health
10maintenance organization, or insurer, operating in this state that pays or insures
11health, medical, or prescription drug expenses on behalf of beneficiaries.
AB68-SSA1,1359,16 12(2) Licensure. (a) A person may not operate as a pharmacy services
13administrative organization in this state without a pharmacy services
14administrative organization license. In order to obtain a license, a person shall apply
15to the commissioner in the form and manner prescribed by the commissioner. The
16application shall include all of the following:
AB68-SSA1,1359,1817 1. The name, address, telephone number, and federal employer identification
18number of the applicant.
AB68-SSA1,1359,2019 2. The name, business address, and telephone number of a contact person for
20the applicant.
AB68-SSA1,1359,2121 3. The fee under s. 601.31 (1) (nw).
AB68-SSA1,1359,2222 4. Evidence of financial responsibility of at least $1,000,000.
AB68-SSA1,1359,2323 5. Any other information required by the commissioner.
AB68-SSA1,1359,2524 (b) The term of a license issued under par. (a) shall be 2 years from the date of
25issuance.
AB68-SSA1,1360,4
1(3) Disclosure to the commissioner. (a) A pharmacy services administrative
2organization shall disclose to the commissioner the extent of any ownership or
3control of the pharmacy services administrative organization by an entity that does
4any of the following:
AB68-SSA1,1360,55 1. Provides pharmacy services.
AB68-SSA1,1360,66 2. Provides prescription drug or device services.
AB68-SSA1,1360,87 3. Manufactures, sells, or distributes prescription drugs, biologicals, or medical
8devices.
AB68-SSA1,1360,119 (b) A pharmacy services administrative organization shall notify the
10commissioner in writing within 5 days of any material change in its ownership or
11control relating to an entity described in par. (a).
AB68-SSA1,1360,12 12(4) Rules. The commissioner may promulgate rules to implement this section.
AB68-SSA1,2998 13Section 2998. 632.865 (2m) of the statutes is created to read:
AB68-SSA1,1360,1714 632.865 (2m) Fiduciary duty and disclosures to health benefit plan
15sponsors
. (a) A pharmacy benefit manager owes a fiduciary duty to the health
16benefit plan sponsor to act according to the health benefit plan sponsor's instructions
17and in the best interests of the health benefit plan sponsor.
AB68-SSA1,1360,2018 (b) A pharmacy benefit manager shall annually provide, no later than the date
19and using the method prescribed by the commissioner by rule, the health benefit plan
20sponsor all of the following information from the previous calendar year:
AB68-SSA1,1360,2221 1. The indirect profit received by the pharmacy benefit manager from owning
22any interest in a pharmacy or service provider.
AB68-SSA1,1360,2423 2. Any payment made by the pharmacy benefit manager to a consultant or
24broker who works on behalf of the health benefit plan sponsor.
AB68-SSA1,1361,4
13. From the amounts received from all drug manufacturers, the amounts
2retained by the pharmacy benefit manager, and not passed through to the health
3benefit plan sponsor, that are related to the health benefit plan sponsor's claims or
4bona fide service fees.
AB68-SSA1,1361,95 4. The amounts, including pharmacy access and audit recovery fees, received
6from all pharmacies that are in the pharmacy benefit manager's network or have a
7contract to be in the network and, from these amounts, the amount retained by the
8pharmacy benefit manager and not passed through to the health benefit plan
9sponsor.
AB68-SSA1,2999 10Section 2999. 632.8655 of the statutes is created to read:
AB68-SSA1,1361,11 11632.8655 Hospital drug cost reporting. (1) Definitions. In this section:
AB68-SSA1,1361,1312 (a) “Brand-name drug” means a prescription drug approved under 21 USC 355
13(b) or 42 USC 262.
AB68-SSA1,1361,1514 (b) “Covered hospital” means an entity described in 42 USC 256b (a) (4) (L) to
15(N) that participates in the federal drug pricing program under 42 USC 256b.
AB68-SSA1,1361,1616 (c) “Generic drug” means a prescription drug approved under 21 USC 355 (j).
AB68-SSA1,1361,2017 (d) “Margin” means, for a covered hospital, the difference between the net cost
18of a brand-name drug or generic drug covered under the federal drug pricing
19program under 42 USC 256b and the net payment by the covered hospital for that
20brand-name drug or generic drug.
AB68-SSA1,1361,2221 (e) “Net payment” means the amount paid for a brand-name drug or generic
22drug after all discounts and rebates have been applied.
AB68-SSA1,1362,2 23(2) Hospital margin spending. By March 1 annually, each covered hospital
24operating in this state shall report to the commissioner the per unit margin for each
25drug covered under the federal drug pricing program under 42 USC 256b dispensed

1in the previous year multiplied by the number of units dispensed at that margin and
2how the margin revenue was used.
AB68-SSA1,1362,8 3(3) Public reporting. The commissioner shall publicly post covered hospital
4documentation of how each hospital spends the margin revenue. The commissioner
5shall analyze data collected under this section and publish annually a report
6including an analysis on hospital-specific margins and how that revenue is spent or
7allocated on a hospital-specific basis. The commissioner shall keep any trade secret
8or proprietary information confidential.
AB68-SSA1,3000 9Section 3000. 632.8665 of the statutes is created to read:
AB68-SSA1,1362,11 10632.8665 Prescription drug cost reporting. (1) Definitions. In this
11section:
AB68-SSA1,1362,1312 (a) “Brand-name drug” means a prescription drug approved under 21 USC 355
13(b) or 42 USC 262.
AB68-SSA1,1362,1414 (b) “Generic drug” means a prescription drug approved under 21 USC 355 (j).
AB68-SSA1,1362,1715 (c) “Manufacturer” has the meaning given in s. 450.01 (12). “Manufacturer”
16does not include an entity that is engaged only in the dispensing, as defined in s.
17450.01 (7), of a brand-name drug or generic drug.
AB68-SSA1,1362,2118 (d) “Manufacturer-sponsored assistance program” means a program offered by
19a manufacturer or an intermediary under contract with a manufacturer through
20which a brand-name drug or generic drug is provided to a patient at no charge or at
21a discount.
AB68-SSA1,1362,2222 (e) “Pharmacy benefit manager” has the meaning given in s. 632.865 (1) (c).
AB68-SSA1,1363,223 (f) “Pharmacy services administrative organization” means an entity that
24provides contracting and other administrative services to a pharmacy to assist the

1pharmacy in interactions with a 3rd-party payer, pharmacy benefit manager,
2wholesale drug distributor, or other entity.
AB68-SSA1,1363,63 (g) “Wholesale acquisition cost” means the most recently reported
4manufacturer list or catalog price for a brand-name drug or generic drug available
5to wholesalers or direct purchasers in the United States, before application of
6discounts, rebates, or reductions in price.
AB68-SSA1,1363,12 7(2) Price increase or introduction notice; justification report. (a) A
8manufacturer shall notify the commissioner if it is increasing the wholesale
9acquisition cost of a brand-name drug on the market in this state by more than 10
10percent or by more than $10,000 during any 12-month period or if it intends to
11introduce to market in this state a brand-name drug that has an annual wholesale
12acquisition cost of $30,000 or more.
AB68-SSA1,1363,1613 (b) A manufacturer shall notify the commissioner if it is increasing the
14wholesale acquisition cost of a generic drug by more than 25 percent or by more than
15$300 during any 12-month period or if it intends to introduce to market a generic
16drug that has an annual wholesale acquisition cost of $3,000 or more.
AB68-SSA1,1363,2217 (c) The manufacturer shall provide the notice under par. (a) or (b) in writing
18at least 30 days before the planned effective date of the cost increase or drug
19introduction with a justification that includes all documents and research related to
20the manufacturer's selection of the cost increase or introduction price and a
21description of life cycle management, market competition and context, and
22estimated value or cost-effectiveness of the product.
AB68-SSA1,1364,2 23(3) Net prices paid by pharmacy benefit managers. By March 1 annually, the
24manufacturer shall report to the commissioner the value of price concessions,

1expressed as a percentage of the wholesale acquisition cost, provided to each
2pharmacy benefit manager for each drug sold in this state.
AB68-SSA1,1364,7 3(4) Rebates and price concessions. By March 1 annually, each pharmacy
4benefit manager shall report to the commissioner the amount received from
5manufacturers as drug rebates and the value of price concessions, expressed as a
6percentage of the wholesale acquisition cost, provided by manufacturers for each
7drug.
AB68-SSA1,1364,11 8(5) Manufacturer-sponsored assistance programs. By March 1 annually,
9each manufacturer shall provide the commissioner with a description of each
10manufacturer-sponsored patient assistance program in effect during the previous
11year that includes all of the following:
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