An Act To Prevent Excessive Prices for Prescription Drugs
Maine Legislature, Session 130, LD 1117
Committee: Health Coverage, Insurance and Financial Services
Sponsors: JACKSON, FECTEAU, CLAXTON, MAXMIN, RAFFERTY, SANBORN, DOUDERA, TEPLER, WHITE

Legislative Document
No. 1117
S.P. 380
In Senate, March 22, 2021
An Act To Prevent Excessive Prices for Prescription Drugs
Received by the Secretary of the Senate on March 18, 2021.  Referred to the Committee on 
Health Coverage, Insurance and Financial Services pursuant to Joint Rule 308.2 and ordered 
printed.
DAREK M. GRANT
Secretary of the Senate
Presented by President JACKSON of Aroostook.
Cosponsored by Speaker FECTEAU of Biddeford and
Senators: CLAXTON of Androscoggin, MAXMIN of Lincoln, RAFFERTY of York, 
SANBORN of Cumberland, Representatives: DOUDERA of Camden, TEPLER of Topsham, 
WHITE of Waterville.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA c. 166 is enacted to read:
CHAPTER 166
PROHIBITION ON EXCESSIVE INCREASES IN GENERIC PRESCRIPTION 
DRUG PRICES
§2035.  Definitions
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings.
1.  Consumer Price Index.  "Consumer Price Index" means the Consumer Price Index, 
Annual Average, for All Urban Consumers, CPI-U: U.S. City Average, All items, reported 
by the United States Department of Labor, Bureau of Labor Statistics, or its successor or, 
if the index is discontinued, an equivalent index reported by a federal authority or, if no 
such index is reported, "Consumer Price Index" means a comparable index chosen by the 
Bureau of Labor Statistics.
2.  Generic or off-patent prescription drug.  "Generic or off-patent prescription 
drug" means any prescription drug for which any exclusive marketing rights granted under 
the Federal Food, Drug, and Cosmetic Act; the federal Public Health Service Act, Public 
Law 78-410, Section 351; and federal patent law have expired including any drug-device 
combination product for the delivery of a generic drug.
3.  Prescription drug.  "Prescription drug" has the same meaning as in Title 32, section 
13702-A, subsection 30.
4.  Prescription drug manufacturer.  "Prescription drug manufacturer" means a 
business operating in this State that manufactures prescription drugs for sale to another 
person or business in this State.
5.  Wholesale acquisition cost.  "Wholesale acquisition cost" has the meaning stated 
in 42 United States Code, Section 1395w-3a.
§2036. Excessive price increases for generic or off-patent prescription drugs 
prohibited
1.  Excessive price increases prohibited.  A prescription drug manufacturer may not 
impose an excessive price increase, whether directly or through a wholesale distributor, 
pharmacy or similar intermediary or intermediaries, on the sale of any generic or off-patent 
prescription drug sold, dispensed or delivered to any consumer in this State.
2.  Determination of excessive price increases.  A price increase of a generic or off-
patent prescription drug is excessive for purposes of this section when: 
A.  The price increase, adjusted for inflation using the Consumer Price Index, exceeds:
(1)  Fifteen percent of the wholesale acquisition cost of the immediately preceding 
calendar year; or
(2)  Forty percent of the wholesale acquisition cost of 3 years prior to the current 
year; and
B.  The price increase, adjusted for inflation using the Consumer Price Index, exceeds 
$30 for a 30-day supply of the generic or off-patent prescription drug or for a course 
of treatment of the generic or off-patent prescription drug that lasts less than 30 days.
3.  Exception.  It is not a violation of this section for a wholesale distributor or 
pharmacy to increase the price of a generic or off-patent prescription drug if the price 
increase is directly attributable to additional costs for the generic or off-patent prescription 
drug imposed on the wholesale distributor or pharmacy by the prescription drug 
manufacturer of the generic or off-patent prescription drug.
4.  Registered agent.  Any entity that sells, distributes, delivers or offers for sale any 
generic or off-patent prescription drug in this State is required to maintain a registered agent 
within the State.
5.  Enforcement.  The following provisions govern the enforcement of this section.
A.  The administrator of benefits for state employees, or any entity of State Government 
that provides or purchases a prescription drug benefit, any entity under contract with 
State Government to provide prescription drug benefits or any other state agency shall 
notify a prescription drug manufacturer and the Attorney General of any price increase 
for a generic or off-patent prescription drug that is an excessive price increase in 
violation of this section.
B.  Within 45 days of receipt of notice under paragraph A, the prescription drug 
manufacturer of the generic or off-patent prescription drug shall submit a statement to 
the Attorney General:
(1)  Itemizing the components of the cost of producing the drug;
(2)  Identifying the circumstances and timing of any increase in materials or 
manufacturing costs that caused any increase during the preceding year in the price 
of the drug; and
(3)  Providing any other information that the prescription drug manufacturer 
believes to be pertinent to a determination of whether a violation of this chapter 
has occurred.
C.  The Attorney General may require a prescription drug manufacturer and wholesale 
distributor to produce any records or documents that may be relevant to a determination 
of whether a violation of this section has occurred.
D.  On petition of the Attorney General, a court may issue an order to:
(1)  Compel the prescription drug manufacturer of the generic or off-patent 
prescription drug to:
(a)  Provide a statement required under paragraph B; or
(b)  Produce records or documents requested by the Attorney General under 
paragraph C that may be relevant to a determination of whether a violation of 
this section has occurred;
(2)  Restrain or enjoin a violation of this section, including an order requiring that 
prices be restored to levels that comply with this section;
(3)  Require the prescription drug manufacturer to provide an accounting to the 
Attorney General of all revenues generated in violation of this section;
(4)  Restore to any consumer, including any 3rd-party payor, any money acquired 
as a result of an excessive price increase in violation of this section.  With respect 
to this subparagraph, every individual transaction in violation of this section is 
determined to be a separate violation;
(5)  Require that all revenues generated in violation of this section be remitted to 
the State to be used for efforts designed to reduce the cost to consumers of 
acquiring prescription drugs, if a prescription drug manufacturer is unable to 
determine the individual transactions necessary to provide the restitution described 
in subparagraph (4);
(6)  Impose a civil penalty of up to $10,000 per day for each violation of this 
section; and
(7)  Provide for any other appropriate relief, including attorney's fees and costs 
reasonably incurred by the Attorney General in bringing an action against a 
prescription drug manufacturer found in violation of this section.
§2037.  Prohibition on withdrawal of generic or off-patent prescription drugs for sale
1.  Withdrawal from sale prohibited.  It is a violation of this chapter for any 
prescription drug manufacturer of a generic or off-patent prescription drug to withdraw that 
prescription drug from sale or distribution within this State, whether directly or through a 
wholesale distributor, for the purpose of avoiding the prohibition on excessive price 
increases set forth in section 2036.
2.  Notice required.  Any prescription drug manufacturer that intends to withdraw a 
generic or off-patent prescription drug from sale or distribution within the State must 
provide 180 days' prior notice to the Attorney General of the withdrawal in order to avoid 
the prohibition on excessive price increases set forth in section 2036, subsection 1.
3.  Penalty.  The Attorney General shall assess a penalty of $500,000 on any 
prescription drug manufacturer of a generic or off-patent prescription drug that the 
Attorney General determines has withdrawn that generic or off-patent prescription drug 
from sale or distribution in this State, whether directly or through a wholesale distributor, 
in violation of this section.
Sec. 2.  Legislative findings; impact of price increases for prescription 
drugs.  In order to protect the safety, health and economic well-being of the residents of 
this State by guarding them from the negative and harmful impact of excessive and 
unconscionable prices for prescription drugs, the enactment of this Act is necessary and the 
Legislature finds that:
1.  Access to prescription drugs is necessary for consumers in this State to maintain or 
acquire good health;
2.  Excessive and unconscionable prices negatively impact the ability of consumers in 
this State to obtain prescription drugs and excessive and unconscionable price increases 
thereby endanger the health and safety of consumers in this State to maintain or acquire 
good health;
3.  Excessive and unconscionable prices for prescription drugs threaten the economic 
well-being of consumers in this State and endanger their ability to pay for other necessary 
and essential goods and services including housing, food and utilities;
4.  Excessive and unconscionable prices for prescription drugs contribute significantly 
to a dramatic and unsustainable rise in health care and health insurance costs that threatens 
the overall ability of consumers in this State to obtain health coverage and maintain or 
acquire good health; and 
5.  Excessive and unconscionable prices for prescription drugs contribute significantly 
to rising state costs for health care provided and paid for through:
A.  State-funded medical assistance programs for consumers in this State who are 
elderly, are living with disabilities or have low incomes; and
B.  Health insurance programs for public employees, including employees of the State, 
municipalities, counties, school districts and institutions of higher education, and for 
retirees whose health care costs are funded by public programs, thereby threatening the 
ability of the State to fund those programs adequately and further threatening the ability 
of the State to fund other programs necessary for the public good and safety, such as 
public education and public safety.
SUMMARY
This bill prohibits excessive price increases for generic and off-patent prescription 
drugs sold in this State. The bill makes prescription drug manufacturers who violate the 
provisions subject to enforcement action by the Attorney General.