IB 
Union Calendar No. 579 
110TH CONGRESS 
2D SESSION 
H. R. 971 
[Report No. 110–898] 
To ensure and foster continued patient safety and quality of care by making 
the antitrust laws apply to negotiations between groups of independent 
pharmacies and health plans and health insurance issuers (including 
health plans under parts C and D of the Medicare Program) in the 
same manner as such laws apply to protected activities under the Na-
tional Labor Relations Act. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 8, 2007 
Mr. WEINER (for himself and Mr. MORAN of Kansas) introduced the following 
bill; which was referred to the Committee on the Judiciary 
SEPTEMBER 28, 2008 
Additional sponsors: Mr. SHAYS, Mr. GRIJALVA, Mr. ROGERS of Alabama, Mr. 
COBLE, Mr. ADERHOLT, Mr. ROSS, Mrs. BOYDA of Kansas, Mr. EVER-
ETT, Mr. GRAVES, Mrs. EMERSON, Mr. CRAMER, Mr. WEXLER, Mr. GOR-
DON of Tennessee, Mr. PETERSON of Pennsylvania, Mr. BONNER, Mr. 
HIGGINS, Mr. COOPER, Mr. JONES of North Carolina, Mr. ISRAEL, Mr. 
TERRY, Mrs. MCCARTHY of New York, Mr. PITTS, Mr. HOLDEN, Mr. 
DELAHUNT, Mr. JOHNSON of Georgia, Mr. BERRY, Ms. HIRONO, Ms. 
WOOLSEY, Mr. FATTAH, Mr. REYES, Mr. MILLER of North Carolina, Mr. 
PLATTS, Mr. LOBIONDO, Mr. BRADY of Pennsylvania, Mr. CAMP of 
Michigan, Mr. PRICE of North Carolina, Mr. MURTHA, Mr. KAGEN, Mr. 
ETHERIDGE, Mrs. MCMORRIS RODGERS, Mr. BRALEY of Iowa, Mr. 
MCINTYRE, Mr. BOUSTANY, Mr. KLEIN of Florida, Mr. MCHUGH, Mr. 
HERGER, Mr. FILNER, Mr. ORTIZ, Mr. SALAZAR, Mr. WAMP, Mr. KEN-
NEDY, Mr. MARSHALL, Mr. GOODE, Mr. MOORE of Kansas, Mr. UPTON, 
Mr. ALLEN, Mr. MORAN of Virginia, Mrs. NAPOLITANO, Mr. THORN-
BERRY, Mr. HAYES, Mr. ABERCROMBIE, Mr. FARR, Mr. CONYERS, Mr. 
TOWNS, Mr. BARRETT of South Carolina, Mr. SPRATT, Ms. CASTOR, Ms. 
HERSETH SANDLIN, Mr. BOUCHER, Ms. LINDA T. SA´NCHEZ of Cali-
fornia, Mr. GOHMERT, Mr. DAVID DAVIS of Tennessee, Mr. TAYLOR, Mr. 
SHULER, Mr. PAUL, Mr. MCNULTY, Mr. GINGREY, Mr. ALEXANDER, Mr. 
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EDWARDS, Mr. JINDAL, Ms. SLAUGHTER, Mr. STUPAK, Mr. MILLER of 
Florida, Mr. CONAWAY, Mr. SMITH of Nebraska, Mr. SKELTON, Mr. 
GILLMOR, Mr. PICKERING, Mrs. DRAKE, Mr. GERLACH, Mr. BOOZMAN, 
Mr. HOEKSTRA, Mr. BUTTERFIELD, Mr. CARNEY, Mr. BARTLETT of 
Maryland, 
Mr. 
TIAHRT, 
Mr. 
GILCHREST, 
Mr. 
HINCHEY, 
Mr. 
FORTENBERRY, Mrs. CUBIN, Mr. LARSEN of Washington, Mr. SNYDER, 
Ms. BALDWIN, Mr. REHBERG, Mr. ARCURI, Mr. BISHOP of New York, 
Mr. HODES, Mr. SPACE, Mr. COURTNEY, Mr. BISHOP of Georgia, Mr. 
JORDAN of Ohio, Mr. POMEROY, Ms. JACKSON-LEE of Texas, Mr. WEST-
MORELAND, Mr. RAHALL, Mr. NEUGEBAUER, Mr. MELANCON, Mr. 
CAPUANO, Ms. HOOLEY, Mr. HALL of Texas, Mr. DAVIS of Kentucky, 
Mr. CUELLAR, Mr. HARE, Mr. ELLSWORTH, Ms. ROYBAL-ALLARD, Mr. 
JEFFERSON, Mr. RAMSTAD, Mr. CARTER, Mr. SIMPSON, Mr. CHANDLER, 
Mr. MICHAUD, Mr. SCHIFF, Mr. CLEAVER, Mr. DUNCAN, Mr. LOEBSACK, 
Mr. WALBERG, Mr. RODRIGUEZ, Mr. MURPHY of Connecticut, Mrs. 
MALONEY
of New York, Ms. SHEA-PORTER, Mr. HINOJOSA, Mr. 
MCCAUL of Texas, Mr. LAMPSON, Ms. FALLIN, Mr. SALI, Mr. BOREN, 
Mr. SHUSTER, Mrs. MUSGRAVE, Mr. BOYD of Florida, Mr. WALZ of Min-
nesota, Mr. BLUMENAUER, Mr. NADLER, Mr. SARBANES, Ms. FOXX, Mr. 
PRICE of Georgia, Mr. BARROW, Mr. CROWLEY, Mr. COHEN, Mr. WELCH 
of Vermont, Ms. MCCOLLUM of Minnesota, Mr. PATRICK J. MURPHY of 
Pennsylvania, Mr. DOGGETT, Mr. ROTHMAN, Mr. WILSON of Ohio, Mr. 
MANZULLO, Mr. LUCAS, Mr. ROGERS of Kentucky, Ms. NORTON, Mr. 
WATT, Mr. WALDEN of Oregon, Mr. OLVER, Mr. ENGLISH of Pennsyl-
vania, Mr. MCNERNEY, Mr. GUTIERREZ, Mr. DEFAZIO, Mr. CARNAHAN, 
Mrs. CAPITO, Mr. SESTAK, Mr. WITTMAN of Virginia, Mr. KINGSTON, 
Mr. SOUDER, Mr. DONNELLY, Mr. SCOTT of Virginia, Mr. KUHL of New 
York, Ms. CLARKE, Mr. SMITH of New Jersey, Mr. REYNOLDS, Mr. 
BAIRD, Mr. CARSON, Mr. CUMMINGS, and Mr. BROWN of South Carolina 
SEPTEMBER 28, 2008 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on February 8, 2007] 
A BILL 
To ensure and foster continued patient safety and quality 
of care by making the antitrust laws apply to negotia-
tions between groups of independent pharmacies and 
health plans and health insurance issuers (including 
health plans under parts C and D of the Medicare Pro-
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gram) in the same manner as such laws apply to pro-
tected activities under the National Labor Relations Act. 
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 ‘‘Community Pharmacy 
Fairness Act of 2007’’. 
SEC. 2. APPLICATION OF THE ANTITRUST LAWS TO INDE-
PENDENT PHARMACIES NEGOTIATING WITH 
HEALTH PLANS. 
(a) IN GENERAL.—Any independent pharmacies who 
are engaged in negotiations with a health plan regarding 
the terms of any contract under which the pharmacies pro-
vide health care items or services for which benefits are pro-
vided under such plan shall, in connection with such nego-
tiations, be entitled to the same treatment under the anti-
trust laws as the treatment to which bargaining units which 
are recognized under the National Labor Relations Act are 
entitled in connection with activities described in section 
7 of such Act. Such a pharmacy shall, only in connection 
with such negotiations, be treated as an employee engaged 
in concerted activities and shall not be regarded as having 
the status of an employer, independent contractor, manage-
rial employee, or supervisor. 
(b) PROTECTION FOR GOOD FAITH ACTIONS.—Actions 
taken in good faith reliance on subsection (a) shall not be 
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the subject under the antitrust laws of criminal sanctions 
nor of any civil damages, fees, or penalties beyond actual 
damages incurred. 
(c) NO CHANGE
IN NATIONAL LABOR RELATIONS 
ACT.—This section applies only to independent pharmacies 
excluded from the National Labor Relations Act. Nothing 
in this section shall be construed as changing or amending 
any provision of the National Labor Relations Act, or as 
affecting the status of any group of persons under that Act. 
(d) EFFECTIVE DATE.—The exemption provided in 
subsection (a) shall apply to conduct occurring beginning 
on the date of the enactment of this Act. 
(e) LIMITATIONS ON EXEMPTION.—Nothing in this sec-
tion shall exempt from the application of the antitrust laws 
any agreement or otherwise unlawful conspiracy that— 
(1) would have the effect of boycotting any inde-
pendent pharmacy or group of independent phar-
macies, or would exclude, limit the participation or 
reimbursement of, or otherwise limit the scope of serv-
ices to be provided by, any independent pharmacy or 
group of independent pharmacies with respect to the 
performance of services that are within the scope of 
practice as defined or permitted by relevant law or 
regulation; 
(2) allocates a market among competitors; 
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(3) unlawfully ties the sale or purchase of one 
product or service to the sale or purchase of another 
product or service; or 
(4) monopolizes or attempts to monopolize a 
market. 
(f) LIMITATION
BASED
ON
MARKET
SHARE
OF 
GROUP.—This section shall not apply with respect to the 
negotiations of any group of independent pharmacies with 
a health plan regarding the terms of any contract under 
which such pharmacies provide health care items or services 
for which benefits are provided under such plan in a PDP 
region (as defined in subsection (j)(4)) if the number of 
pharmacy licenses of such pharmacies within such group 
in such region exceeds 25 percent of the total number of 
pharmacy licenses issued to all retail pharmacies (includ-
ing both independent and other pharmacies) in such region. 
(g) NO EFFECT ON TITLE VI OF CIVIL RIGHTS ACT 
OF 1964.—Nothing in this section shall be construed to af-
fect the application of title VI of the Civil Rights Act of 
1964. 
(h) NO APPLICATION TO SPECIFIED FEDERAL PRO-
GRAMS.—Nothing in this section shall apply to negotiations 
between independent pharmacies and health plans per-
taining to benefits provided under any of the following: 
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(1) The Medicaid Program under title XIX of the 
Social Security Act (42 U.S.C. 1396 et seq.). 
(2) The State Children’s Health Insurance Pro-
gram (SHIP) under title XXI of the Social Security 
Act (42 U.S.C. 1397aa et seq.). 
(3) Chapter 55 of title 10, United States Code 
(relating to medical and dental care for members of 
the uniformed services). 
(4) Chapter 17 of title 38, United States Code 
(relating to Veterans’ medical care). 
(5) Chapter 89 of title 5, United States Code (re-
lating to the Federal employees’ health benefits pro-
gram). 
(6) The Indian Health Care Improvement Act 
(25 U.S.C. 1601 et seq.). 
(i) DEFINITIONS.—For purposes of this section: 
(1) ANTITRUST
LAWS.—The term ‘‘antitrust 
laws’’— 
(A) has the meaning given it in subsection 
(a) of the first section of the Clayton Act (15 
U.S.C. 12(a)), except that such term includes sec-
tion 5 of the Federal Trade Commission Act (15 
U.S.C. 45) to the extent such section 5 applies to 
unfair methods of competition; and 
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(B) includes any State law similar to the 
laws referred to in subparagraph (A). 
(2) HEALTH PLAN AND RELATED TERMS.— 
(A) 
IN
GENERAL.—The 
term 
‘‘health 
plan’’— 
(i) means a group health plan or a 
health insurance issuer that is offering 
health insurance coverage; 
(ii) includes any entity
that con-
tracts with such a plan or issuer for the ad-
ministering of services under the plan or 
coverage; and 
(iii) includes a prescription drug plan 
offered under part D of title XVIII of the 
Social Security Act and a Medicare Advan-
tage plan offered under part C of such title. 
(B) 
HEALTH
INSURANCE
COVERAGE; 
HEALTH INSURANCE ISSUER.—The terms ‘‘health 
insurance coverage’’ and ‘‘health insurance 
issuer’’ have the meanings given such terms 
under paragraphs (1) and (2), respectively, of 
section 733(b) of the Employee Retirement In-
come Security Act of 1974 (29 U.S.C. 1191b(b)). 
(C) GROUP
HEALTH
PLAN.—The term 
‘‘group health plan’’ has the meaning given that 
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term in section 733(a)(1) of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 
1191b(a)(1)). 
(3) INDEPENDENT PHARMACY.—The term ‘‘inde-
pendent pharmacy’’ means a pharmacy that has a 
market share of— 
(A) less than 10 percent in any PDP re-
gion; and 
(B) less than 1 percent in the United 
States. 
For purposes of the preceding sentence, all phar-
macies that are members of the same controlled group 
of corporations (within the meaning of section 267(f) 
of the Internal Revenue Code of 1986) and all phar-
macies under common control (within the meaning of 
section 52(b) of such Code but determined by treating 
an interest of more than 50 percent as a controlling 
interest) shall be treated as 1 pharmacy. 
(4) PDP REGION.—The term ‘‘PDP region’’ has 
the meaning given such term in section 1860D– 
11(a)(2) of the Social Security Act (42 U.S.C. 
1395w–111(a)(2)). 
(j) 5-YEAR SUNSET.—The exemption provided in sub-
section (a) shall only apply to conduct occurring during 
the 5-year period beginning on the date of the enactment 
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of this Act and shall continue to apply for 1 year after the 
end of such period to contracts entered into before the end 
of such period. 
(k) GENERAL ACCOUNTING OFFICE STUDY AND RE-
PORT.—The Comptroller General of the United States shall 
conduct a study on the impact of enactment of this section 
during the 6-month period beginning with the 5th year of 
the 5-year period described in subsection (j). Not later than 
the end of such 6-month period, the Comptroller General 
shall submit to Congress a report on such study and shall 
include in the report such recommendations on the exten-
sion of this section (and changes that should be made in 
making such extension) as the Comptroller General deems 
appropriate. 
(l) OVERSIGHT.—Nothing in this section shall preclude 
the Federal Trade Commission or the Department of Justice 
from overseeing the conduct of independent pharmacies cov-
ered under this section. 
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Union Calendar No. 579 
110TH CONGRESS 
2D SESSION 
H. R. 971 
[Report No. 110–898] 
A BILL 
To ensure and foster continued patient safety and 
quality of care by making the antitrust laws 
apply to negotiations between groups of inde-
pendent pharmacies and health plans and health 
insurance issuers (including health plans under 
parts C and D of the Medicare Program) in the 
same manner as such laws apply to protected ac-
tivities under the National Labor Relations Act. 
SEPTEMBER 28, 2008 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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