PRINTER'S NO. 1397 THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL No.1249 Session of 2025 INTRODUCED BY HANBIDGE, VENKAT, PIELLI, HILL-EVANS, HOWARD, GIRAL, SANCHEZ, KENYATTA, BOYD, GREEN AND K.HARRIS, APRIL 17, 2025 REFERRED TO COMMITTEE ON HEALTH, APRIL 17, 2025 AN ACT Amending Title 35 (Health and Safety) of the Pennsylvania Consolidated Statutes, establishing the Pennsylvania Drug Shortage Reporting System; and imposing duties on the Department of Health. The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows: Section 1. Title 35 of the Pennsylvania Consolidated Statutes is amended by adding a chapter to read: CHAPTER 55A DRUG SHORTAGE REPORTING SYSTEM Sec. 55A01. Definitions. 55A02. Establishment. 55A03. Discontinuance or interruption in the production of a lifesaving drug. 55A04. Duties of department. 55A05. Regulations. 55A06. Confidentiality. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 § 55A01. Definitions. The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise: "Active pharmaceutical ingredient." As follows: (1) Any substance that is intended: (i) for incorporation into a finished drug product; and (ii) to furnish pharmacological activity or other direct effect in the diagnosis, cure, mitigation, treatment or prevention of disease. (2) Any substance that affects the structure or any function of the body. (3) The term does not include intermediates used in the synthesis of the substance. "Common control." The power to direct or cause the direction of the management and policies of an entity, whether by ownership of stock, voting rights, contract or otherwise. "Department." The Department of Health of the Commonwealth. "Drug." Any of the following: (1) An article recognized in the official United States Pharmacopoeia, official Homoeopathic Pharmacopoeia of the United States or official National Formulary, or a supplement to one of the previous articles. (2) An article intended for use in the diagnosis, cure, mitigation, treatment or prevention of disease in an individual. (3) An article intended to affect the structure or any function of the body of an individual. (4) An article intended for use as a component of any 20250HB1249PN1397 - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 article specified in paragraph (1), (2) or (3). "Drug shortage." A period of time when the demand or projected demand of a lifesaving drug exceeds the supply of the lifesaving drug within this Commonwealth. "Health care facility." A for-profit or nonprofit entity providing clinically related health care services that may or may not be operated by an agency or State or local government, including: (1) A general or special hospital, such as a psychiatric hospital, rehabilitation hospital or ambulatory surgical facility. (2) Long-term care nursing facilities. (3) Cancer treatment centers using radiation therapy on an ambulatory basis. (4) Inpatient drug and alcohol treatment facilities. "Health care professional." An individual duly licensed or certified under the laws of this Commonwealth regulating a particular branch of health care practice, including: (1) Doctor of: (i) Dental surgery. (ii) Medicine. (iii) Optometry. (iv) Osteopathy. (v) Podiatry. (vi) Chiropractic. (2) Certified registered nurse anesthetist. (3) Certified registered nurse practitioner. (4) Certified enterostomal therapy nurse. (5) Certified community health nurse. (6) Certified psychiatric mental health nurse. 20250HB1249PN1397 - 3 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 (7) Certified clinical nurse specialist. (8) Licensed psychiatrist. "Lifesaving drug." A drug that is: (1) life-supporting; (2) life-sustaining; or (3) intended for use in the prevention or treatment of a debilitating disease or condition, including a drug: (i) used in emergency medical care; (ii) used during surgery; or (iii) that is critical to the public health during a public health emergency declared by the Secretary of the United States Department of Health and Human Services under 42 U.S.C. § 247d (relating to public health emergencies). "Manufacturer." One of the following as defined under section 3 of the act of December 14, 1992 (P.L.1116, No.145), known as the Wholesale Prescription Drug Distributors License Act: (1) A manufacturer. (2) A virtual manufacturer. "Meaningful disruption." A change in production that is reasonably likely to lead to a reduction in the supply of a lifesaving drug by a manufacturer that affects the ability of the manufacturer to fill orders or meet expected demand for the product. The term does not include interruptions in manufacturing due to matters such as routine maintenance or insignificant changes in manufacturing if the manufacturer expects to resume operations within 90 days. "Reporting system." The Pennsylvania Drug Shortage Reporting System established under this chapter. 20250HB1249PN1397 - 4 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 "Secretary." The Secretary of Health of the Commonwealth. "Wholesale distribution of a lifesaving drug." Distribution of a lifesaving drug through intrastate commerce, including: (1) Intracompany sales or joining together of five or fewer pharmacies to place a direct order of medicine from the manufacturer. (2) The purchase or other acquisition by a health care facility that is a member of a group purchasing organization of a lifesaving drug for the health care facility's own use. (3) The sale, purchase or trade of a lifesaving drug or an offer to sell, purchase or trade a drug among health care facilities that are under common control. (4) The sale, purchase or trade of a lifesaving drug or an offer to sell, purchase or trade a lifesaving drug for emergency medical reasons, including transfers of a prescription for lifesaving drugs by a retail pharmacy to another retail pharmacy to alleviate a temporary shortage. (5) The sale, purchase or trade of a lifesaving drug, an offer to sell, purchase or trade a lifesaving drug or the dispensing of a lifesaving drug pursuant to a prescription. "Wholesale distributor." As follows: (1) A person that operates a facility from which the person engages in the wholesale distribution of a lifesaving drug, including warehouses. (2) Independent wholesale drug traders that conduct wholesale distribution of a lifesaving drug. (3) Retail pharmacies that conduct wholesale distribution of a lifesaving drug. § 55A02. Establishment. The Pennsylvania Drug Shortage Reporting System is 20250HB1249PN1397 - 5 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 established. The department shall administer the reporting system. § 55A03. Discontinuance or interruption in the production of a lifesaving drug. (a) Notification requirement.-- (1) A manufacturer located within this Commonwealth shall notify the department of: (i) A permanent discontinuance in the manufacture of a lifesaving drug or an interruption of the manufacture of a lifesaving drug that is likely to lead to a meaningful disruption in this Commonwealth. (ii) A permanent discontinuance or interruption of the manufacture of an active pharmaceutical ingredient of a lifesaving drug that is likely to lead to a meaningful disruption of the active pharmaceutical ingredient and therefore a drug shortage in this Commonwealth, and the reasons for the discontinuance or interruption, if known. (2) A wholesale distributor shall notify the department of a drug shortage. (b) Notification contents.-- (1) For a manufacturer: (i) Reasons for the discontinuation or interruption, selecting from the following categories and providing further explanation as the department may require: (A) Shortage of an active ingredient. If an active pharmaceutical ingredient is a reason for, or risk factor in, a discontinuation or interruption, the disclosure shall include the source of the active pharmaceutical ingredient and any alternative sources for the active pharmaceutical ingredient known by the 20250HB1249PN1397 - 6 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 manufacturer. (B) Shortage of an inactive ingredient component. (C) Discontinuance by the manufacturer of the lifesaving drug. (D) Delay in shipment of the lifesaving drug. (E) Demand increase for the lifesaving drug. (ii) Whether an associated device used for preparation or administration included in the lifesaving drug is a reason for, or a risk factor in, the discontinuation or interruption, if known. (iii) The expected duration of the interruption. (iv) Other information as the department may require. (2) For a wholesale distributor: (i) Disclosure of a drug shortage. (ii) The expected length of the drug shortage, if known. (iii) Other information as the department may require. (c) Timing.--Notification shall be submitted to the department: (1) For a manufacturer of a lifesaving drug, at least six months prior to the date of the discontinuance or interruption. (2) For a wholesale distributor, within 72 hours of the beginning of a drug shortage. (d) Failure to meet requirements.--If a manufacturer or wholesale distributor fails to submit information required under this section: 20250HB1249PN1397 - 7 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 (1) The secretary shall issue a letter informing the manufacturer or wholesale distributor of the failure. (2) Not later than 30 days after the issuance of a letter under paragraph (1), the manufacturer or wholesale distributor that receives a letter shall submit to the secretary a written response to the letter stating the basis for noncompliance and providing information required under this chapter. (3) Not later than 45 days after the issuance of a letter under paragraph (1), the secretary shall publish the letter and any responses to the letter on the department's publicly accessible Internet website with any appropriate redaction made to protect confidential information. (4) If the secretary determines that the letter under paragraph (1) was issued in error or, after review of a response, the manufacturer or wholesale distributor had a reasonable basis for not notifying the department as required under subsection (a), the requirements of this subsection shall not apply. § 55A04. Duties of department. (a) Drug shortage list.--The department shall maintain an up-to-date list of lifesaving drugs that are determined by the department to be in shortage in this Commonwealth. (b) Content of list.--For each lifesaving drug on the list, the department shall include: (1) The name of the lifesaving drug in shortage, including the National Drug Code number. (2) The name of each manufacturer of the lifesaving drug. (3) The reason for the drug shortage, as listed by the 20250HB1249PN1397 - 8 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 manufacturer. (4) The estimated duration of the lifesaving drug shortage as determined by the department in consultation with the manufacturer. (5) The name of each wholesale distributor impacted by the shortage, as reported by the wholesale distributor. (c) Distribution of list.--The department shall distribute information on the discontinuance or interruption of the manufacture of a lifesaving drug or a drug shortage experienced by a manufacturer or wholesale distributor to appropriate organizations, including health care professionals and patient organizations. (d) Posting.--The department shall make all information on the list publicly available and shall provide contact information to allow a health care professional, patient or individual to submit a report of a perceived drug shortage. (e) Coordination with United States Attorney General.--Not later than 30 days after the receipt of a notification under section 55A03(a) (relating to discontinuance or interruption in the production of a lifesaving drug), the secretary shall: (1) Determine whether the notification pertains to a controlled substance subject to a production quota under 21 U.S.C. § 826 (relating to production quotas for controlled substances). (2) If necessary, as determined by the secretary: (i) Notify the United States Attorney General that the secretary has received a notification. (ii) Request that the United States Attorney General increase the aggregate and individual production quotas under 21 U.S.C. § 826 applicable to a controlled 20250HB1249PN1397 - 9 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 substance and any ingredient therein to a level the secretary deems necessary to address a shortage of a controlled substance based on the best available market data. (f) Reporting.--Requirement: (1) Not later than January 1, 2026, and every 90 days thereafter, the department shall transmit a report of lifesaving drugs on the list under subsection (a) that: (i) Specifies the number of manufacturers and wholesale distributors that submitted a notification to the secretary under section 55A03 during a calendar year. (ii) Lists the major actions taken by the secretary to prevent or mitigate the lifesaving drug shortages. (iii) Describes the coordination between the department and the Drug Enforcement Administration on efforts to prevent or alleviate lifesaving drug shortages. (iv) Identifies the number of and describes the instances in which the department exercised regulatory authority to prevent or alleviate a lifesaving drug shortage. (v) Lists the names of manufacturers or wholesale distributors that were issued letters under section 55A03(d). (vi) Specifies the number of drug shortages occurring during the calendar year, as identified by the secretary. (2) The report shall be distributed to: (i) The chair and minority chair of the Health and Human Services Committee of the Senate. 20250HB1249PN1397 - 10 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 (ii) The chair and minority chair of the Health Committee of the House of Representatives. (iii) The chair and minority chair of the Human Services Committee of the House of Representatives. (g) Trend analysis.--The secretary may retain a third party to conduct a study, if the secretary determines that a study would help clarify the causes, trends or solutions related to drug shortages. (h) Alert mechanism.-- (1) The department shall develop and administer a publicly accessible Internet website that provides information from a wholesale distributor located within this Commonwealth that has stock of a lifesaving drug reported to be in shortage, including the following information: (i) General descriptive information for each participating wholesale distributor, including contact information. (ii) Information on the stock of a lifesaving drug reported to be in shortage that is available at each participating wholesale distributor, which shall be updated every 24 hours. (iii) Other information that may assist a health care professional, patient or individual in accessing a lifesaving drug. (2) A health care professional, patient or individual shall have the option to receive an alert from the reporting system when a lifesaving drug is available from a wholesale distributor. § 55A05. Regulations. The department may promulgate regulations necessary to 20250HB1249PN1397 - 11 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 administer this chapter. § 55A06. Confidentiality. Nothing in this chapter shall be construed as requiring the disclosure of information that is a trade secret or confidential information exempted under 5 U.S.C. § 552(b)(4) (relating to public information; agency rules, opinions, orders, records, and proceedings) by a manufacturer or wholesale distributor or 18 U.S.C. § 1905 (relating to disclosure of confidential information generally). Section 2. This act shall take effect in 90 days. 20250HB1249PN1397 - 12 - 1 2 3 4 5 6 7 8 9 10