I 
115TH CONGRESS 
1ST SESSION H. R. 2974 
To amend the Internal Revenue Code of 1986 to establish an excise tax 
on certain prescription drugs which have been subject to a price spike, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 21, 2017 
Mr. POCAN (for himself and Ms. KAPTUR) introduced the following bill; which 
was referred to the Committee on Energy and Commerce, and in addition 
to the Committee on Ways and Means, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to establish 
an excise tax on certain prescription drugs which have 
been subject to a price spike, and for other purposes. 
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 ‘‘Stop Price Gouging 
Act’’. 
SEC. 2. IDENTIFICATION OF PRESCRIPTION DRUG PRICE 
SPIKES. 
(a) DEFINITIONS.—In this section: 
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(1) APPLICABLE ENTITY.—The term ‘‘applica-
ble entity’’ means the holder of an application ap-
proved under subsection (c) or (j) of section 505 of 
the Federal Food, Drug, and Cosmetic Act (21 
U.S.C. 355) or of a license issued under subsection 
(a) or (k) of section 351 of the Public Health Serv-
ice Act (42 U.S.C. 262) for a drug described in 
paragraph (5)(A). 
(2) AVERAGE
MANUFACTURER
PRICE.—The 
term ‘‘average manufacturer price’’— 
(A) has the same meaning given such term 
under section 1927(k)(1) of the Social Security 
Act (42 U.S.C. 1396r–8(k)(1)); or 
(B) with respect to a drug for which there 
is no average manufacturer price as so defined, 
such term shall mean the wholesale acquisition 
cost of the drug. 
(3) COMMERCE.—The term ‘‘commerce’’ has 
the meaning given such term in section 4 of the 
Federal Trade Commission Act (15 U.S.C. 44). 
(4) INSPECTOR GENERAL.—The term ‘‘Inspec-
tor General’’ means the Inspector General of the De-
partment of Health and Human Services. 
(5) PRESCRIPTION DRUG.— 
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(A) IN GENERAL.—The term ‘‘prescription 
drug’’ means any drug (as defined in section 
201(g) of the Federal Food, Drug, and Cos-
metic Act (21 U.S.C. 321(g)), including a com-
bination product whose primary mode of action 
is determined under section 503(g) of such Act 
(21 U.S.C. 353(g) to be that of a drug, and 
that— 
(i) is subject to section 503(b)(1) of 
the Federal Food, Drug, and Cosmetic Act 
(21 U.S.C. 353(b)(1)); and 
(ii) is covered by a Federal health 
care program (as defined in section 
1128B(f) of the Social Security Act (42 
U.S.C. 1320a–7b(f))). 
(B) 
TREATMENT
OF
REFORMULATED 
DRUGS.—For purposes of this section, a pre-
scription drug with respect to which the Sec-
retary of Health and Human Services has ap-
proved any minor reformulation that does not 
produce a meaningful therapeutic benefit, the 
drug that was approved prior to any such refor-
mulation and the drug with any such reformu-
lation shall be considered one prescription drug. 
(6) PRICE SPIKE.— 
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