House of Representatives State of Utah


         W030 STATE CAPITOL COMPLEX . P.O. BOX 145030
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        SALT LAKE CITY, UTAH 84114-5030 . (801) 538-1029         February 21, 2007

Mr. Speaker:

    The Health and Human Services Committee reports a favorable recommendation on S.B. 160, PHARMACY PRACTICE ACT AMENDMENTS, by Senator P. Knudson, with the following amendments:

1.    Page 4, Line 113 through Page 5, Line 124b :    

             113          "Unprofessional conduct" includes:
             114          (1) willfully deceiving or attempting to deceive the division, the board, or their agents
             115      as to any relevant matter regarding compliance under this chapter;
             116          (2) (a)

{   except for price discounts [conditional] based upon [volume purchases: (a)]

             117      purchase volumes paying rebates to practitioners or any other health care providers; and   }
 

    except as provided in Subsection (2)(b):
    (i) paying or offering rebates to practitioners or receiving rebates from practitioners or any other health care provider; or
    (ii) paying, offering, or receiving compensation in the form of a commission, bonus, rebate, kickback, or split fee arrangement with practitioners or any other health care provider, for the purpose of obtaining referrals.
    (b) Subsection (2)(a) does not apply to:
    (i) giving or receiving price discounts based on purchase volume;
    (ii) passing along pharmaceutical manufacturer's rebates; or
    (iii) being compensated for providing dispensing, billing and related services to a veterinarian.  

             118          [(b) entering into any agreement with a medical practitioner or any other person for the
             119      payment or acceptance of compensation or its economic equivalent for recommending the
             120      professional services of either party;]
             121          
{   (b)   } S. [providing to or receiving from a physician, surgeon, organization, agency, or other

             122
     person, either directly or indirectly, any form of compensation for the referral of a patient to a
             123      pharmacy licensed under this chapter, including compensation in the form of a commission,
             124      bonus, rebate, kickback, or split-fee arrangement;]
{   for pharmacies and pharmacists not

             124a      participating in Medicare or Medicaid, an act that would violate the Federal Anti-kickback
             124b      Statute, 42 U.S.C. sec. 1320a-7b(b). .S   }

    Respectfully,

    Paul Ray
    Committee Chair

Voting: 6-0-2
3 SB0160.HC1.wpd 2/21/07 10:06 am markandrews/MDA CJD/MDA

Bill Number
Action Class
Action Code

*SB0160*
*H*
*HCRAMD*

 SB0160
H
HCRAMD