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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 3208 Introduced in Senate (IS)]

106th CONGRESS
  2d Session
                                S. 3208

 To amend the Federal Food, Drug, and Cosmetic Act to enhance consumer 
   protection in the purchase of prescription drugs from interstate 
                           Internet sellers.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

            October 17 (legislative day, September 22), 2000

 Mr. Jeffords (for himself, Mr. Kennedy, and Mr. Dodd) introduced the 
 following bill; which was read twice and referred to the Committee on 
                 Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL

 
 To amend the Federal Food, Drug, and Cosmetic Act to enhance consumer 
   protection in the purchase of prescription drugs from interstate 
                           Internet sellers.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act be cited as the ``Internet Prescription Drug Consumer 
Protection Act of 2000''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress makes the following findings:
            (1) Legitimate Internet sellers of prescription drugs can 
        offer substantial benefits to consumers. These potential 
        benefits include convenience, privacy, valuable information, 
        competitive prices, and personalized services.
            (2) Unlawful Internet sellers of prescription drugs may 
        dispense inappropriate, contaminated, counterfeit, or subpotent 
        prescription drugs that could put at risk the health and safety 
        of consumers.
            (3) Unlawful Internet sellers have exposed consumers to 
        significant health risks by knowingly filling invalid 
        prescriptions, such as prescriptions based solely on an online 
        questionnaire, or by dispensing prescription drugs without any 
        prescription.
            (4) The ease with which web sites can be created and 
        removed and the lack of readily available information to 
        identify Internet sellers creates significant barriers to 
        effective law enforcement efforts against unlawful Internet 
        sellers.
            (5) Consumers may have difficulty distinguishing legitimate 
        from unlawful Internet sellers, as well as foreign from 
        domestic Internet sellers, of prescription drugs.
            (6) States need additional enforcement tools to take 
        effective action against unlawful domestic Internet sellers and 
        the Federal agencies need additional enforcement tools to take 
        effective action against unlawful foreign Internet sellers.
    (b) Purpose.--The purpose of this Act is to provide Federal and 
State law enforcement with adequate tools to take effective action 
against interstate Internet sellers of prescription drugs who illegally 
sell such drugs to consumers in the United States and to protect such 
consumers against potential harms that may result from purchasing such 
drugs from such sellers.

SEC. 3. AMENDMENT TO THE FEDERAL FOOD, DRUG, AND COSMETIC ACT.

    (a) In General.--Chapter V of the Federal Food, Drug, and Cosmetic 
Act (21 U.S.C. 351 et seq.) is amended by inserting after section 503A 
the following:

``SEC. 503B. INTERNET PRESCRIPTION DRUG SALES.

    ``(a) Definitions.--For purposes of this section:
            ``(1) Consumer.--The term `consumer' means a person (other 
        than an entity licensed or otherwise authorized under Federal 
        or State law as a pharmacy or to dispense or distribute 
        prescription drugs) that purchases or seeks to purchase 
        prescription drugs through the Internet.
            ``(2) Home page.--The term `home page' means the entry 
        point or main web page for an Internet site.
            ``(3) Internet.--The term `Internet' means collectively the 
        myriad of computer and telecommunications facilities, including 
        equipment and operating software, which comprise the 
        interconnected worldwide network of networks that employ the 
        Transmission Control Protocol/Internet Protocol, or any 
        predecessor or successor protocols to such protocol, to 
        communicate information of all kinds by wire or radio, 
        including electronic mail.
            ``(4) Interstate internet seller.--
                    ``(A) In general.--The term `interstate Internet 
                seller' means a person whether in the United States or 
                abroad, that engages in, offers to engage in, or causes 
                the delivery or sale of a prescription drug through the 
                Internet and has such drug delivered directly to the 
                consumer via the Postal Service, or any private or 
                commercial interstate carrier to a consumer in the 
                United States who is residing in a State other than the 
                State in which the seller's place of business is 
                located. This definition excludes a person who only 
                delivers a prescription drug to a consumer, such as an 
interstate carrier service.
                    ``(B) Exemption.--With respect to the consumer 
                involved, the term `interstate Internet seller' does 
                not include a person described in subparagraph (A) 
                whose place of business is located within 75 miles of 
                the consumer.
            ``(5) Link.--The term `link' means either a textual or 
        graphical marker on a web page that, when clicked on, takes the 
        consumer to another part of the Internet, such as to another 
        web page or a different area on the same web page, or from an 
        electronic message to a web page.
            ``(6) Pharmacy.--The term `pharmacy' means any place 
        licensed or otherwise authorized as a pharmacy under State law.
            ``(7) Prescriber.--The term `prescriber' means an 
        individual, licensed or otherwise authorized under applicable 
        Federal and State law to issue prescriptions for prescription 
        drugs.
            ``(8) Prescription drug.--The term `prescription drug' 
        means a drug under section 503(b)(1).
            ``(9) Valid prescription.--The term `valid prescription' 
        means a prescription that meets the requirements of section 
        503(b)(1) and other applicable Federal and State law.
            ``(10) Web site; site.--The terms `web site' and `site' 
        mean a specific location on the Internet that is determined by 
        Internet protocol numbers or by a domain name.
    ``(b) Requirements for Interstate Internet Sellers.--
            ``(1) In general.--Each interstate Internet seller shall 
        comply with the requirements of this subsection with respect to 
        the sale of, or the offer to sell, prescription drugs through 
        the Internet and shall at all times display on its web site 
        information in accordance with paragraph (2).
            ``(2) Web site disclosure information.--An interstate 
        Internet seller shall post in a visible and clear manner (as 
        determined by regulation) on the home page of its web site, or 
        on a page directly linked to such home page--
                    ``(A) the street address of the interstate Internet 
                seller's place of business, and the telephone number of 
                such place of business;
                    ``(B) each State in which the interstate Internet 
                seller is licensed or otherwise authorized as a 
                pharmacy, or if the interstate Internet seller is not 
                licensed or otherwise authorized by a State as a 
                pharmacy, each State in which the interstate Internet 
                seller is licensed or otherwise authorized to dispense 
                prescription drugs, and the type of State license or 
                authorization;
                    ``(C) in the case of an interstate Internet seller 
                that makes referrals to or solicits on behalf of a 
                prescriber, the name of each prescriber, the street 
                address of each such prescriber's place of business, 
                the telephone number of such place of business, each 
                State in which each such prescriber is licensed or 
                otherwise authorized to prescribe prescription drugs, 
                and the type of such license or authorization; and
                    ``(D) a statement that the interstate Internet 
                seller will dispense prescription drugs only upon a 
                valid prescription.
            ``(3) Date of posting.--Information required to be posted 
        under paragraph (2) shall be posted by an interstate Internet 
        seller--
                    ``(A) not later than 90 days after the effective 
                date of this section if the web site of such seller is 
                in operation as of such date; or
                    ``(B) on the date of the first day of operation of 
                such seller's web site if such site goes into operation 
                after such date.
            ``(4) Qualifying statements.--An interstate Internet seller 
        shall not indicate in any manner that posting disclosure 
        information on its web site signifies that the Federal 
        Government has made any determination on the legitimacy of the 
        interstate Internet seller or its business.
            ``(5) Disclosure to state licensing boards.--An interstate 
        Internet seller licensed or otherwise authorized to dispense 
        prescription drugs in accordance with applicable State law 
        shall notify each State entity that granted such licensure or 
        authorization that it is an interstate Internet seller, the 
        name of its business, the Internet address of its business, the 
        street address of its place of business, and the telephone 
        number of such place of business.
            ``(6) Regulations.--The Secretary is authorized to 
        promulgate such regulations as are necessary to carry out the 
        provisions of this subsection. In issuing such regulations, the 
        Secretary--
                    ``(A) shall take into consideration disclosure 
                formats used by existing interstate Internet seller 
                certification programs; and
                    ``(B) shall in defining the term `place of 
                business' include provisions providing that such place 
                is a single location at which employees of the business 
                perform job functions, and not a post office box or 
                similar locale.''.
    (b) State Enforcement of Federal Law Regarding Internet Sellers of 
Prescription Drugs.--Chapter III of the Federal Food, Drug, and 
Cosmetic Act (21 U.S.C. 331 et seq.) is amended by adding at the end 
the following:

   ``state proceedings regarding internet sales of prescription drugs

    ``Sec. 310A. (a) In General.--A State, through its attorney 
general, may bring in its own name, and in an appropriate district 
court of the United States, proceedings against an interstate Internet 
seller of a prescription drug for the civil enforcement, or to restrain 
violations of section 503B(b), or paragraph (1) or (2) of section 
503(b), on behalf of consumers who reside in that State and have been 
or are being adversely affected by such violations. Through such 
proceedings, the State may with respect to such violations--
            ``(1) obtain a permanent nationwide injunction;
            ``(2) enforce compliance; or
            ``(3) obtain such other relief as the court may find 
        appropriate.
    ``(b) Notice to Secretary and Appropriate Federal Agencies.--A 
State--
            ``(1) shall serve prior written notice of any civil action 
        under subsection (a) upon the Secretary and the appropriate 
        Federal agencies and provide to the Secretary and such agencies 
        a copy of its complaint, except in any case where such prior 
        notice is not feasible, in which case the State shall serve 
        such notice immediately upon instituting such action; and
            ``(2) may proceed with the civil action unless another 
        State attorney general or a Federal agency has filed a 
        complaint against the same party for the same violations under 
        this section prior to receiving notice and the civil action 
        brought by the State attorney general or such agency is still 
        ongoing or there has been a final judgment.
    ``(c) Rights of President.--The President shall have the right to 
intervene in any action brought under subsection (a), and upon so 
intervening, to be heard in all matters arising therein and to file 
notices of appeal.
    ``(d) Applicability of Subpoenas.--Subpoenas for witnesses who are 
required to attend a court of the United States, in any district, may 
run into any other district in any proceeding under this section.
    ``(e) Construction.--For purposes of bringing any civil action 
under subsection (a), nothing in this section shall prevent a State 
attorney general from exercising the powers conferred on the attorney 
general by the laws of such State to conduct investigations or to 
administer oaths or affirmations or to compel the attendance of 
witnesses or the production of documentary or other evidence or to 
bring an action under the laws of such State to obtain remedies under 
that State's laws.
    ``(f) Definitions.--For purposes of this section, the terms 
`interstate Internet seller', `Internet', and `prescription drug' have 
the meanings given such terms in section 503B.''.
    (c) Prohibited Acts.--Section 301 of the Federal Food, Drug, and 
Cosmetic Act (21 U.S.C. 331) is amended by adding at the end the 
following:
    ``(aa) The failure to post information required under section 
503B(b)(2) or knowingly making a materially false statement when 
posting such information as required under such section or violating 
section 503B(b)(4).''.

SEC. 4. PUBLIC EDUCATION.

    The Secretary of Health and Human Services shall engage in 
activities to educate the public about the dangers of purchasing 
prescription drugs from unlawful Internet sources. The Secretary should 
educate the public about effective public and private sector consumer 
protection efforts, as appropriate, with input from the public and 
private sectors, as appropriate.

SEC. 5. STUDY REGARDING COORDINATION OF REGULATORY ACTIVITIES.

    Not later than 180 days after the date of enactment of this Act, 
the Secretary of Health and Human Services, after consultation with the 
Attorney General, shall submit to Congress a report providing 
recommendations for coordinating the activities of Federal agencies 
regarding interstate Internet sellers that operate from foreign 
countries and for coordinating the activities of the Federal Government 
with the activities of governments of foreign countries regarding such 
interstate Internet sellers.

SEC. 6. CIVIL ACTIONS REGARDING PROPERTY.

    Section 303 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
333) is amended by adding at the end the following subsection:
    ``(i)(1) If a person is alienating or disposing of property, or 
intends to alienate or dispose of property which is obtained as a 
result of or is traceable to a violation by an interstate Internet 
seller of paragraph (1) or (2) of section 503(b), the President may 
commence a civil action in any Federal court--
            ``(A) to enjoin such alienation or disposition of property; 
        or
            ``(B) for a restraining order to--
                    ``(i) prohibit any person from withdrawing, 
                transferring, removing, dissipating, or disposing of 
                any such property or property of equivalent value; and
                    ``(ii) appoint a temporary receiver to administer 
                such restraining order.
    ``(2) Proceedings under paragraph (1) shall be carried out in the 
same manner as apply under section 1345 of title 18, United States 
Code.''.

SEC. 7. EFFECTIVE DATE.

    The amendments made by this Act shall take effect 6 months after 
the date of enactment of this Act, except that the authority of the 
Secretary of Health and Human Services to commence the process of 
rulemaking is effective on the date of enactment of this Act.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this Act such 
sums as may be necessary.
                                 <all>
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