I
105TH CONGRESS
2D SESSION
H. R. 3756
To restrict the disclosure of prescription information by pharmacy owners,
pharmacists, and other pharmacy employees.
IN THE HOUSE OF REPRESENTATIVES
APRIL 29, 1998
Mr. NADLER (for himself, Mr. HINCHEY, Ms. WOOLSEY, Mr. STARK, Mr.
KLECZKA, Mr. VENTO, Mr. SHERMAN, and Mr. GUTIERREZ) introduced
the following bill; which was referred to the Committee on Commerce
A BILL
To restrict the disclosure of prescription information by
pharmacy owners, pharmacists, and other pharmacy em-
ployees.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Prescription Privacy
Protection Act of 1998’’.
SEC. 2. RESTRICTION ON DISSEMINATION OF PRESCRIP-
TION INFORMATION.
Except as provided in section 3, a pharmacy owner,
pharmacist, or employee of a pharmacy may not disclose
prescription data to any person or governmental agency,
other than the individual who is the subject of the data
or another owner or employee of the pharmacy, without
having obtained from such individual a written consent to
the disclosure that satisfies the requirements of section 4.
SEC. 3. EXCEPTIONS.
A pharmacy owner, pharmacist, or employee of a
pharmacy may make a disclosure of prescription data oth-
erwise prohibited under section 2, if the disclosure is made
under one of the following conditions:
(1) To the physician who wrote the prescription
that is the subject of the prescription data.
(2) To a parent or guardian of the individual
who is the subject of the prescription data, or to a
court-appointed attorney representing the individual,
but only where the individual is a minor.
(3) To a guardian of the individual who is the
subject of the prescription data, or to a court-ap-
pointed attorney representing the individual, but
only where the individual is not capable, because of
a physical or mental condition, to effect a written
consent that satisfies the requirements of section 4.
(4) To an agent of the individual who is the
subject of the prescription data, where the agent is
acting under authority granted in a power of attor-
ney.
(5) In the case of a pharmacy owner, to an
agent of the owner, where the disclosure is necessary
for the purpose of a carrying out a written contract
between the agent and the owner under which the
agent—
(A) is required to perform administrative
services for the owner; and
(B) is prohibited from disclosing the pre-
scription data to any person other than the
owner.
(6) For purposes of complying with a judicial or
administrative subpoena or a court order.
(7) For purposes of providing information re-
quested in a law enforcement investigation, an audit,
a pharmacist licensure procedure, or a professional
review.
(8) In the course of oral testimony in a deposi-
tion or court proceeding.
(9) Where the disclosure is necessary to support
an application for receipt of health care benefits
from a health insurance provider or a governmental
agency.
(10) Where the disclosure is made for the pur-
pose of permitting any person to carry out a duty
or authority under title XVIII or XIX of the Social
Security Act.
SEC. 4. CONSENT.
A pharmacy owner, pharmacist, or employee of a
pharmacy may make a disclosure of prescription data to
any person or governmental agency other than the individ-
ual who is the subject of the data, if the owner, phar-
macist, or employee has obtained from such individual a
written consent to the disclosure that includes the follow-
ing information:
(1) The name of the individual who is the sub-
ject of the data.
(2) The name of the physician who wrote the
prescription that is the subject of the data.
(3) The nature of the data authorized to be dis-
closed.
(4) The date on which the consent expires.
(5) The date on which the consent is executed.
(6) The signature of the individual who is the
subject of the data.
SEC. 5. REGULATIONS AND ENFORCEMENT.
(a) REGULATIONS.—The Secretary of Health and
Human Services and the Secretary of Labor shall jointly
promulgate regulations to enforce this Act.
(b) VIOLATION.—
(1) IN GENERAL.—Any person who the Sec-
retary of Health and Human Services or the Sec-
retary of Labor determines has substantially and
materially failed to comply with this Act, or a regu-
lation promulgated by such Secretary under this
Act, shall be subject, in addition to any other pen-
alties that may be prescribed by law, to a civil pen-
alty of not more than $10,000 for each such viola-
tion.
(2) PROCEDURES
FOR
IMPOSITION
OF
PEN-
ALTIES.—Section 1128A of the Social Security Act,
other than subsections (a) and (b) and the second
sentence of subsection (f) of that section, shall apply
to the imposition of a civil monetary penalty under
paragraph (1) in the same manner as such provi-
sions apply with respect to the imposition of a pen-
alty under section 1128A of such Act.
SEC. 6. PREEMPTION.
This Act shall not preempt any State law that is not
inconsistent with this Act, but that imposes additional re-
quirements with respect to a prohibition under this Act.
SEC. 7. DEFINITIONS.
For purposes of this Act:
(1) GUARDIAN.—The term ‘‘guardian’’ means a
court-approved or court-appointed guardian of an in-
dividual.
(2) PARENT.—The term ‘‘parent’’ means a bio-
logical, adoptive, or foster parent.
(3) PHARMACIST.—The term ‘‘pharmacist’’
means a person who is licensed to engage in the
practice of pharmacology.
(4) PHARMACY OWNER.—The term ‘‘pharmacy
owner’’ means any person that operates a licensed
pharmacy.
(5) PHYSICIAN.—The term ‘‘physician’’ means
a health care professional who is legally authorized
to write prescriptions for pharmaceutical products.
(6) PRESCRIPTION DATA.—The term ‘‘prescrip-
tion data’’ means any written, printed, or electroni-
cally recorded information maintained by a phar-
macist or pharmacy owner that indicates the phar-
maceutical product or drug therapy prescribed by a
physician. Such term includes information such as
brand name, scientific name, manufacturer, and
medical use of the pharmaceutical product or drug
therapy.
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