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hb940_00_IN
As Introduced
136th
General Assembly
Regular
Session
H. B. No. 940
2025-2026
Representatives Cockley, Grim
To
amend
sections
1345.99
and 3901.99
and to enact
sections
1345.033
and 3901.216
of the Revised Code
to
prohibit certain increases in the prices of, and cost sharing for,
prescription drugs and drug therapy related devices and supplies
during a shortage and to name this act the Medical Shortage
Protection Act.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
sections
1345.99
and 3901.99
be amended and
sections
1345.033
and 3901.216
of the Revised Code be enacted to read as follows:
Sec.
1345.033.
(A)
As used in this section, "supplier" includes a drug
manufacturer.
(B)
For any period for which there is a shortage of a prescription drug,
including a generic prescription drug, or a drug therapy related
device or supply, no supplier shall sell or offer to sell in any part
of this state the drug, device, or supply at a rate or price that is
more than ten per cent above the rate or price charged by the
supplier for the same or similar drug, device, or supply immediately
prior to the covered period.
(C)
Either of the following is evidence of a shortage of a prescription
drug or drug-therapy-related device or supply:
(1)
The federal "Defense Production Act of 1950," 50 U.S.C.
4511, has been invoked regarding the drug, device, or supply.
(2)
The governor has declared a state of emergency regarding the drug,
device, or supply in accordance with section 107.42 of the Revised
Code, but only under the advice of at least one of the following: the
director of health, the executive director of the state board of
pharmacy, or a professional association or society of licensed health
professionals authorized to prescribe drugs.
(D)
Any violation of division (B) of this section shall be considered an
unconscionable act or practice in connection with a consumer
transaction under section 1345.03 of the Revised Code. In addition to
the relief described in section 1345.09 of the Revised Code, a
prevailing consumer is entitled to compensatory damages in an amount
that is six times the amount of the consumer's actual economic loss
as well as court costs and attorney's fees.
(E)
The medical shortage fund is created in the state treasury. The fund
shall consist of all money deposited in accordance with division
(F)(3) of section 1345.99 and division (E)(3) of section 3901.99 of
the Revised Code. The director of health shall use the money in the
fund solely to address shortages of prescription drugs and drug
therapy related devices and supplies.
Sec.
1345.99.
(A)
Whoever violates section 1345.23 or 1345.24 of the Revised Code is
guilty of a minor misdemeanor.
(B)
Whoever violates division (C) of section 1345.30 or division (D) of
section 1345.76 of the Revised Code shall be fined not more than one
thousand dollars.
(C)
Whoever knowingly violates division (E) of section 1345.02 or
knowingly violates section 1345.18 of the Revised Code is guilty of a
misdemeanor of the third degree for a first offense and a misdemeanor
of the second degree for any subsequent offense.
(D)
Whoever recklessly violates section 1345.032 of the Revised Code
shall be fined the following:
(1)
For the first violation, not more than one hundred dollars for each
solicitation document distributed;
(2)
For any subsequent violation, not more than two hundred dollars for
each solicitation document distributed.
(E)
Whoever negligently violates section 1345.022 of the Revised Code
shall be fined not more than one thousand dollars.
(F)(1)
Whoever recklessly violates division (B) of section 1345.033 of the
Revised Code is guilty of a misdemeanor of the first degree.
(2)
In addition to any jail term or fine that the court may impose under
section 2929.24 or 2929.28 of the Revised Code for a misdemeanor of
the first degree, the court shall impose a fine in an amount that is
at least one thousand dollars and not more than ten thousand dollars
per violation, in addition to a fine in an amount of twenty-five
thousand dollars per day for each day the violation occurred during
the shortage period described in division (B) of section 1345.033 of
the Revised Code.
(3)
The court shall deposit any amounts received under division (F)(2) of
this section in accordance with section 1345.033 of the Revised Code.
Sec.
3901.216.
(A)
As used in this section:
(1)
"Administrator" has the same meaning as in section 3959.01
of the Revised Code.
(2)
"Covered person" and "health plan issuer" have
the same meanings as in section 3922.01 of the Revised Code.
(B)
For any period for which there is a shortage of a prescription drug,
including a generic prescription drug, or a drug therapy related
device or supply, no health plan issuer, including an administrator,
shall impose cost sharing on the drug, device, or supply in an amount
that is more than ten per cent above the amount imposed by the health
plan issuer for the same or similar drug, device, or supply
immediately prior to the covered period.
(C)
Either of the following is evidence of a shortage of a prescription
drug or drug-therapy-related device or supply:
(1)
The federal "Defense Production Act of 1950," 50 U.S.C.
4511, has been invoked regarding the drug, device, or supply.
(2)
The governor has declared a state of emergency regarding the drug,
device, or supply in accordance with section 107.42 of the Revised
Code, but only under the advice of at least one of the following: the
director of health, the executive director of the state board of
pharmacy, or a professional association or society of licensed health
professionals authorized to prescribe drugs.
(D)(1)
Any violation of division (B) of this section shall be considered an
unfair or deceptive act or practice in the business of insurance
under section 3901.20 of the Revised Code and is subject to the
penalties that may be imposed under section 3901.22 of the Revised
Code.
(2)
A covered person may institute a civil action in a court of competent
jurisdiction for any violation of this section. In the event the
covered person prevails in the action, the court shall award the
covered person compensatory damages in an amount that is six times
the amount of the covered person's actual economic loss, court costs,
and reasonable attorney's fees.
Sec.
3901.99.
(A)
Whoever violates section 3901.09 of the Revised Code shall be fined
not less than twenty-five nor more than five hundred dollars.
(B)
Whoever violates any law relating to the superintendent of insurance,
or any law of this state relating to insurance as defined in division
(A)(1) of section 3901.04 of the Revised Code, for the violation of
which no penalty is otherwise provided in the Revised Code, shall be
fined not more than twenty-five thousand dollars, imprisoned not more
than six months, or both.
(C)
Whoever violates section 3901.54 of the Revised Code is guilty of a
felony of the fifth degree.
(D)
Whoever violates division (J)(2) of section 3901.07 of the Revised
Code is guilty of a misdemeanor of the first degree.
(E)(1)
Whoever recklessly violates division (B) of section 3901.216 of the
Revised Code is guilty of a misdemeanor of the first degree.
(2)
In addition to any jail term or fine that the court may impose under
section 2929.24 or 2929.28 of the Revised Code for a misdemeanor of
the first degree, the court shall impose a fine in an amount that is
at least one thousand dollars and not more than ten thousand dollars
per violation, in addition to a fine in an amount of twenty-five
thousand dollars per day for each day the violation occurred during
the shortage period described in division (B) of section 3901.216 of
the Revised Code.
(3)
The court shall deposit any amounts received under division (E)(2) of
this section in accordance with section 1345.033 of the Revised Code.
Section
2.
That
existing
sections
1345.99
and 3901.99
of the Revised Code
are
hereby
repealed.
Section
3.
Section
1345.99 of the Revised Code is presented in this act as a composite
of the section as amended by both H.B. 52 and S.B. 223 of the 132nd
General Assembly. The General Assembly, applying the principle stated
in division (B) of section 1.52 of the Revised Code that amendments
are to be harmonized if reasonably capable of simultaneous operation,
finds that the composite is the resulting version of the section in
effect prior to the effective date of the section as presented in
this act.
Section
4.
This
act shall be known as the Medical Shortage Protection Act.