Minnesota Legislature
SF 3640
as introduced - 89th Legislature (2015 - 2016) Posted on 05/23/2016 09:41am
Current Version - as introduced
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A bill for an act
relating to state government; creating a Pharmaceutical Industry Commission;
proposing coding for new law in Minnesota Statutes, chapter 152A.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
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[152A.06] DEFINITIONS.
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new text begin Subdivision 1. new text end
new text begin Scope. new text end
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For the purposes of this chapter, the terms defined in this
section have the meanings given them.
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new text begin Subd. 2. new text end
new text begin Legislative function. new text end
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"Legislative function" means the establishment and
promulgation of all rules, orders, and directives of general or particular applicability,
governing the conduct of the regulated persons or businesses, together with such
investigative procedures as are incident thereto and all other valid acts and procedures
which are historically or functionally legislative in character.
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new text begin Subd. 3. new text end
new text begin Administrative function. new text end
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"Administrative function" means all duties and
procedures concerning the execution and enforcement of the laws, rules, orders, directives,
duties, and obligations imposed for the control and government of the persons or
businesses regulated, together with investigative activities incident thereto and procedures
inherently administrative or executive in character.
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new text begin Subd. 4. new text end
new text begin Quasi-judicial function. new text end
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"Quasi-judicial function" means the
promulgation of all orders and directives of particular applicability governing the conduct
of the regulated persons or businesses, together with procedures inherently judicial.
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Sec. 2.
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[152A.07] PHARMACEUTICAL INDUSTRY COMMISSION.
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new text begin Subdivision 1. new text end
new text begin Members. new text end
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The Pharmaceutical Industry Commission shall consist of
five members. The terms of members shall be six years and until their successors have
been appointed and qualified. Each commissioner shall be appointed by the governor by
and with the advice and consent of the senate.
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new text begin Subd. 2. new text end
new text begin Removal; vacancy. new text end
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The removal of members and filling of vacancies on
the commission shall be as provided in section 15.0575.
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new text begin Subd. 3. new text end
new text begin Chair. new text end
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The governor shall select one of the commissioners to serve as the
chair for a term concurrent with that of the governor. If a vacancy occurs in the position of
chair, the governor shall select a new chair to complete the unexpired term.
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new text begin Subd. 4. new text end
new text begin Powers and duties of chair. new text end
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The chair shall be the principal executive
officer of the commission and shall preside at meetings of the commission. The chair shall
organize the work of the commission and may make assignments to commission members,
appoint committees, and give direction to the commission staff through the executive
secretary subject to the approval of the commission.
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new text begin Subd. 5. new text end
new text begin Quorum. new text end
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A majority of the commission shall constitute a quorum, and
the act or decision of a majority of commissioners present, if at least a quorum is present,
shall be the act or decision of the commission. If a vacancy exists on the commission, a
majority of the remaining commissioners constitutes a quorum.
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new text begin Subd. 6. new text end
new text begin Record of proceedings. new text end
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An audio magnetic or audio electronic recording
device shall be used to keep a record of all proceedings before the commission.
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Sec. 3.
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[152A.08] CONFLICT OF INTEREST.
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(a) No person, while a member of the commission, while acting as executive secretary
of the commission, or while employed in a professional capacity by the commission, shall
receive any income, other than dividends or other earnings from a mutual fund or trust if
these earnings do not constitute a significant portion of the person's income, directly or
indirectly, from any pharmaceutical company, drug manufacturer, or other organization.
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(b) A professional employee of the commission must immediately disclose to the
commission or to the commissioner of the department, respectively, any communication,
direct or indirect, with a person who is a party to a pending proceeding before the
commission regarding future benefits, compensation, or employment to be received from
that person.
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Sec. 4.
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[152A.09] EMPLOYMENT RESTRICTIONS; CIVIL PENALTY.
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(a) A person who serves as a commissioner shall not, while employed with or within
one year after leaving the commission, accept employment with, receive compensation
directly or indirectly from, or enter into a contractual relationship with a pharmaceutical
company or drug manufacturer, or an affiliated company of an entity that is subject
to regulation by the commission.
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(b) A drug manufacturer or pharmaceutical company, or a person acting on behalf
of the entity, shall not negotiate or offer to employ or compensate a commissioner of the
commission while the person is so employed or within one year after the person leaves
that employment.
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(c) For the purposes of this section, "affiliated company" means a company that
controls, is controlled by, or is under common control with an entity subject to regulation
by the commission.
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(d) A person who violates this section is subject to a civil penalty not to exceed
$10,000 for each violation. The attorney general may bring an action in district court to
collect the penalties provided in this section.
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Sec. 5.
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[152A.10] EXECUTIVE SECRETARY; COMMISSION EMPLOYEES.
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new text begin Subdivision 1. new text end
new text begin Selection of executive secretary. new text end
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The commission shall appoint an
executive secretary, not a member, who shall be in the unclassified service of the state
and shall serve at the pleasure of the commission. The executive secretary shall take,
subscribe, and file an oath similar to that required of the commissioners, and shall be
subject to the same disqualifications as the commissioners.
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new text begin Subd. 2. new text end
new text begin Powers and duties of executive secretary. new text end
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The executive secretary shall:
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(1) cause to be kept full and correct records of all transactions and proceedings
of the commission;
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(2) appoint, subject to chapter 43A and the approval of the commission, all other
classified employees of the commission and supervise and direct their activities;
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(3) have custody of the seal of the commission;
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(4) serve as the administrative officer of the commission with responsibility for
personnel, budget, and other administrative details related to the work of the commission
or as required by state law;
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(5) prepare orders, reports, and other materials as assigned by the commission and
recommend to the commission such measures as may be appropriate to achieve the
objectives of the commission;
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(6) advise the commission of its financial position and recommend a budget for its
approval; and
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(7) perform other duties as the commission directs.
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new text begin Subd. 3. new text end
new text begin Acting secretary. new text end
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The commission may designate any responsible
employee to serve as acting secretary in the absence of the secretary.
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new text begin Subd. 4. new text end
new text begin Officers and employees. new text end
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The commission may establish other positions in
the unclassified service if the positions meet the criteria of section 43A.08, subdivision
1a, clauses (1) to (7). The commission may employ other persons as may be necessary
to carry out its functions.
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new text begin Subd. 5. new text end
new text begin Transcripts of proceedings. new text end
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Hearing reporters may provide transcripts of
proceedings before the commission to persons requesting transcripts who pay a reasonable
charge therefor to the reporter. The amount of the charge shall be fixed by the commission
and retained by the reporter, notwithstanding any other law to the contrary.
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Sec. 6.
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[152A.11] COMMISSION FUNCTIONS AND POWERS.
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new text begin Subdivision 1. new text end
new text begin Legislative and quasi-judicial functions. new text end
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The functions of the
commission shall be legislative and quasi-judicial in nature. The commission may make
such investigations and determinations, hold such hearings, prescribe such rules, and issue
such orders with respect to the control and conduct of the businesses coming within its
jurisdiction as the legislature itself might make but only as it shall from time to time
authorize.
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new text begin Subd. 2. new text end
new text begin Powers; generally. new text end
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The commission shall, to the extent prescribed by law:
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(1) investigate the management of all drug manufacturers or pharmaceutical
companies operating in Minnesota, the manner in which their businesses are conducted,
and the adequacies of the services that they are affording to the public, and make all
appropriate orders relating to the continuation, termination, or modification of all services
and facilities with a view to properly promoting the health and safety of the public;
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(2) review and ascertain the reasonableness of rates and charges for any prescription
drug sold in Minnesota; and
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(3) approve the rates for prescription drugs covered under the state employee group
insurance program administered under sections 43A.22 to 43A.31.
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new text begin Subd. 3. new text end
new text begin Manner of fact-finding. new text end
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The commission may:
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(1) subpoena, in the same manner as a district court summons is served, at such
time and place as it may designate, any books, papers, or accounts kept by any regulated
business within or without the state, or compel production of verified copies in lieu thereof;
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(2) prepare all forms or blanks for the purpose of obtaining information which it may
deem necessary or useful in the proper exercise of its authority and duties in connection
with regulated businesses, and prescribe the time and manner within which such forms or
blanks shall be completed and filed with it;
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(3) inspect, at all reasonable times, and copy the books, records, memoranda,
correspondence, or other documents and records of any business under its jurisdiction; and
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(4) examine, under oath, any officer, agent, or employee thereof in relation to its
business and affairs.
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new text begin Subd. 4. new text end
new text begin Hearing upon petition. new text end
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With respect to those matters within its
jurisdiction, the commission shall receive, hear, and determine all petitions filed with the
commission in accordance with the rules of practice and procedure promulgated by the
commission, and may investigate, hold hearings, and make determinations upon its own
motion to the same extent, and in every instance, in which it may do so upon petition.
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new text begin Subd. 5. new text end
new text begin Operation with regard to federal law. new text end
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The commission is authorized:
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(1) to cooperate with all federal agencies for the purpose of harmonizing state and
federal regulations within the state to the extent and in the manner deemed advisable; and
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(2) to conduct joint hearings with any federal agency or commission within or without
the state and participate in any proceedings before any federal agency or commission
when it considers such participation advisable and in the interest of the people of this state.
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