South Dakota 2025 Regular Session

South Dakota Senate Bill SB154 Compare Versions

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1-25.627.15 100th Legislative Session 154
1+25.627.14 100th Legislative Session 154
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33
44 2025 South Dakota Legislature
55 Senate Bill 154
6-ENROLLED
7-
8-AN ACT
9-
10-
11-ENTITLED An Act to prohibit pharmaceutical manufacturers from interfering in
12-contracts between 340B entities and pharmacies and to provide a penalty
13-therefor.
14-BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
15-Section 1. That § 37-24-6 be AMENDED:
16-37-24-6. It is a deceptive act or practice for any person to:
17-(1) Knowingly act, use, or employ any deceptive act or practice, fraud, false pretense,
18-false promises, or misrepresentation or to conceal, suppress, or omit any material
19-fact in connection with the sale or advertisement of any merchandise or the
20-solicitation of contributions for charitable purposes, regardless of whether any
21-person has in fact been misled, deceived, or damaged thereby;
22-(2) Advertise price reductions without satisfying one of the following:
23-(a) Including in the advertisement the specific basis for the claim of a price
24-reduction; or
25-(b) Offering the merchandise for sale at the higher price from which the
26-reduction is taken for at least seven consecutive business days during the
27-sixty-day period prior to the advertisement.
28- Any person advertising consumer property or services in this state, which
29-advertisements contain representations or statements as to any type of savings
30-claim, including reduced price claims and price comparison value claims, shall
31-maintain reasonable records for a period of two years from the date of sale and
32-advertisement, which records shall disclose the factual basis for such
33-representations or statements and from which the validity of any such claim be
34-established. However, these reasonable record provisions do not apply to the sale
35-of any merchandise that is of a class of merchandise that is routinely advertised
36-on at least a weekly basis in newspapers, shopping tabloids, or similar publications 25.627.15 2 154
37-SB154 ENROLLED
38-and that has a sales price before price reduction that is less than fifteen dollars per
39-item;
40-(3) Represent a sale of merchandise at reduced rates due to the cessation of business
41-operations and after the date of the first advertisement remain in business under
42-the same, or substantially the same, ownership or trade name, or continue to offer
43-for sale the same type of merchandise at the same location for more than one
44-hundred twenty days;
45-(4) Give or offer a rebate, discount, or anything of value to a person as an inducement
46-for selling consumer property or services in consideration of giving the names of
47-prospective purchasers or otherwise aiding in making a sale to another person, if
48-the earning of the rebate, discount, or other thing of value is contingent upon the
49-occurrence of an event subsequent to the time the person agrees to the sale;
50-(5) Engage in any scheme or plan for disposal or distribution of merchandise whereby
51-a participant pays a valuable consideration for the chance to receive compensation
52-primarily for introducing one or more additional persons into participation in the
53-planner's scheme or for the chance to receive compensation when the person
54-introduced by the participant introduces a new participant;
55-(6) Send, deliver, provide, mail, or cause to be sent, delivered, provided, or mailed
56-any bill or invoice for unordered property or unordered service provided;
57-(7) Advertise a rate, price, or fee for a hotel, motel, campsite, or other lodging
58-accommodation which is not in fact available to the public under the terms
59-advertised. It is not a violation of this subdivision to establish contract rates which
60-are different than public rates;
61-(8) Charge a rate, price, or fee for a hotel, motel, campsite, or other lodging
62-accommodation which is different than the rate, price, or fee charged on the first
63-night of the guest's stay unless, at the initial registration of the guest, a written
64-notification of each price, rate, or fee to be charged during the guest's reserved
65-continuous stay is delivered to the guest and an acknowledgment of receipt of the
66-notice is signed by the guest and kept by the innkeeper for the same period of time
67-as is required by § 34-18-21;
68-(9) Knowingly fail to mail or to deliver by electronic means to a future guest a written
69-confirmation of the date and rates of reservations made for any accommodation at
70-a hotel, motel, campsite, or other lodging accommodation when a written request
71-for confirmation is received from the future guest; 25.627.15 3 154
72-SB154 ENROLLED
73-(10) Require money in advance of arrival or a handling fee in the event of cancellation
74-of any hotel, motel, campsite, or other lodging accommodation unless the
75-innkeeper has a written policy or a separate contract with the guest stating so that
76-is mailed or delivered by electronic means to the guest at or near the making of
77-the reservation;
78-(11) Knowingly advertise or cause to be listed through the internet or in a telephone
79-directory a business address that misrepresents where the business is actually
80-located or that falsely states that the business is located in the same area covered
81-by the telephone directory. This subdivision does not apply to a telephone service
82-provider, an internet service provider, or a publisher or distributor of a telephone
83-directory, unless the conduct proscribed in this subdivision is on behalf of the
84-provider, publisher, or distributor;
85-(12) Sell, market, promote, advertise, or otherwise distribute any card or other
86-purchasing mechanism or device that is not insurance that purports to offer
87-discounts or access to discounts from pharmacies for prescription drug purchases
88-if:
89-(a) The card or other purchasing mechanism or device does not expressly state
90-in bold and prominent type, prevalently placed, that discounts are not
91-insurance;
92-(b) The discounts are not specifically authorized by a separate contract with
93-each pharmacy listed in conjunction with the card or other purchasing
94-mechanism or device; or
95-(c) The discount or access to discounts offered, or the range of discounts or
96-access to the range of discounts, is misleading, deceptive, or fraudulent,
97-regardless of the literal wording.
98-The provisions of this subdivision do not apply to a customer discount or
99-membership card issued by a store or buying club for use in that store or buying
100-club, or a patient access program voluntarily sponsored by a pharmaceutical
101-manufacturer, or a consortium of pharmaceutical manufacturers, that provide free
102-or discounted prescription drug products directly to low income or uninsured
103-individuals either through a discount card or direct shipment;
104-(13) Send or cause to be sent an unsolicited commercial electronic mail message that
105-does not include in the subject line of such message "ADV:" as the first four
106-characters. If the message contains information that consists of explicit sexual
107-material that may only be viewed, purchased, rented, leased, or held in possession 25.627.15 4 154
108-SB154 ENROLLED
109-by an individual eighteen years of age and older, the subject line of each message
110-shall include "ADV:ADLT" as the first eight characters. An unsolicited commercial
111-electronic mail message does not include a message sent to a person with whom
112-the initiator has an existing personal or business relationship or a message sent at
113-the request or express consent of the recipient;
114-(14) Violate the provisions of § 22-25-52;
115-(15) Knowingly fail to disclose the amount of any mandatory fee when reservations are
116-made by a future guest at a hotel, motel, campsite, or other lodging
117-accommodations. A mandatory fee under this subdivision includes any resort fee
118-or parking fee charged by the lodging accommodations whether or not the guest
119-utilizes the amenities or the parking facility for which the fee is assessed;
120-(16) Cause misleading information to be transmitted to users of caller identification
121-technologies or otherwise block or misrepresent the origin of a telephone
122-solicitation. No provider of telephone caller identification services,
123-telecommunications, broadband, or voice over internet protocol service may be
124-held liable for violations of this subdivision committed by other individuals or
125-entities. It is not a violation of this subdivision:
126-(a) For a telephone solicitor to utilize the name and number of the entity the
127-solicitation is being made on behalf of rather than the name and number of
128-the telephone solicitor;
129-(b) If an authorized activity of a law enforcement agency; or
130-(c) If a court order specifically authorizes the use of caller identification
131-manipulation; or
132-(17) Violate section 3 or 4 of this Act.
133-Each act in violation of this section under one thousand dollars is a Class 1
134-misdemeanor. Each act in violation of this statute over one thousand dollars but under
135-one hundred thousand dollars is a Class 6 felony. Each act in violation of this section over
136-one hundred thousand dollars is a Class 5 felony.
137-Section 2. That a NEW SECTION be added to a NEW CHAPTER in title 58:
138-Terms used in this chapter mean:
139-(1) "Pharmaceutical manufacturer," any person engaged in the business of preparing,
140-producing, converting, processing, packaging, labeling, or distributing a
141-prescription drug, but not including a wholesale distributor or dispenser; 25.627.15 5 154
142-SB154 ENROLLED
143-(2) "Pharmacy," any place within or outside this state, licensed by the State Board of
144-Pharmacy, where drugs are dispensed, and pharmaceutical care is provided to
145-residents of this state;
146-(3) "340B drug," a drug purchased through the 340B drug discount program by a 340B
147-entity;
148-(4) "340B drug discount program," a program that imposes limitations on the prices
149-of drugs purchased by covered entities, in accordance with 42 U.S.C. § 256b
150-(January 1, 2025); and
151-(5) "340B entity," a covered entity as defined in 42 U.S.C. § 256b(a)(4) (January 1,
152-2025).
153-Section 3. That a NEW SECTION be added to a new chapter in title 58:
154-A pharmaceutical manufacturer may not, directly or indirectly, deny, restrict, or
155-prohibit the acquisition of a 340B drug or the delivery of a 340B drug to a location that is
156-authorized to receive the drug by a 340B entity or pharmacy, unless receipt of the 340B
157-drug is prohibited by federal law.
158-Nothing in this section requires a pharmaceutical manufacturer to provide a 340B
159-drug price discount to a pharmacy.
160-Nothing in this section prohibits a pharmaceutical manufacturer from limiting
161-distribution of a drug in accordance with 21 U.S.C. § 355-1 (January 1, 2025).
162-Section 4. That a NEW SECTION be added to a new chapter in title 58:
163-A pharmaceutical manufacturer may not , directly or indirectly, require a 340B
164-entity or pharmacy to submit any claim or utilization data, as a condition for allowing the
165-acquisition of a 340B drug by, or delivery of a 340B drug to, a 340B entity, unless the
166-claim or utilization data sharing is required by federal law.
167-Nothing in this section prohibits a pharmaceutical manufacturer from conducting
168-an audit of a 340B entity, in accordance with 42 U.S.C. § 256b(a)(5)(C) (January 1, 2025).
169-Section 5. That a NEW SECTION be added to a new chapter in title 58:
170-In addition to any other remedy provided by law, a 340B entity or a pharmacy may
171-file a civil action against a pharmaceutical manufacturer for a violation of this Act, and
172-may request injunctive relief, actual and consequential damages, and reasonable
173-attorneys' fees and costs. 25.627.15 6 154
174-SB154 ENROLLED
175-An Act to prohibit pharmaceutical manufacturers from interfering in contracts between 340B
176-entities and pharmacies and to provide a penalty therefor.
177-
178-
179-
180-
181-I certify that the attached Act originated in
182-the:
183-
184-Senate as Bill No. 154
185-
186-
187-
188-Secretary of the Senate
189-
190-
191-
192-
193-President of the Senate
194-
195-Attest:
196-
197-
198-
199-
200-Secretary of the Senate
201-
202-
203-
204-
205-Speaker of the House
206-
207-Attest:
6+SENATE HEALTH AND HUMAN SERVICES ENGROSSED
2087
2098
2109
21110
21211
213-Chief Clerk
12+Introduced by: Senator Reed
21413
215-
216-
217-Senate Bill No. 154
218-File No. ____
219-Chapter No. ______
220-
221-
222-
223-Received at this Executive Office
224-this _____ day of _____________,
225-
226-2025 at ____________M.
227-
228-
229-
230-By
231-for the Governor
232-
233-
234-The attached Act is hereby
235-approved this ________ day of
236-______________, A.D., 2025
237-
238-
239-
240-
241-
242-Governor
243-
244-STATE OF SOUTH DAKOTA ,
245-ss.
246-Office of the Secretary of State
247-
248-
249-Filed ____________, 2025
250- at _________ o'clock __M.
251-
252-
253-
254-
255-
256-Secretary of State
257-
258-
259-
260-By
261-Asst. Secretary of State
262-
263-
14+ Underscores indicate new language.
15+ Overstrikes indicate deleted language.
16+An Act to prohibit pharmaceutical manufacturers from interfering in contracts 1
17+between 340B entities and pharmacies and to provide a penalty therefor. 2
18+BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3
19+Section 1. That § 37-24-6 be AMENDED: 4
20+37-24-6. It is a deceptive act or practice for any person to: 5
21+(1) Knowingly act, use, or employ any deceptive act or practice, fraud, false pretense, 6
22+false promises, or misrepresentation or to conceal, suppress, or omit any material 7
23+fact in connection with the sale or advertisement of any merchandise or the 8
24+solicitation of contributions for charitable purposes, regardless of whether any 9
25+person has in fact been misled, deceived, or damaged thereby; 10
26+(2) Advertise price reductions without satisfying one of the following: 11
27+(a) Including in the advertisement the specific basis for the claim of a price 12
28+reduction; or 13
29+(b) Offering the merchandise for sale at the higher price from which the 14
30+reduction is taken for at least seven consecutive business days during the 15
31+sixty-day period prior to the advertisement. 16
32+ Any person advertising consumer property or services in this state, which 17
33+advertisements contain representations or statements as to any type of savings 18
34+claim, including reduced price claims and price comparison value claims, shall 19
35+maintain reasonable records for a period of two years from the date of sale and 20
36+advertisement, which records shall disclose the factual basis for such 21
37+representations or statements and from which the validity of any such claim be 22
38+established. However, these reasonable record provisions do not apply to the sale 23
39+of any merchandise that is of a class of merchandise that is routinely advertised 24
40+on at least a weekly basis in newspapers, shopping tabloids, or similar publications 25 25.627.14 2 154
41+ Underscores indicate new language.
42+ Overstrikes indicate deleted language.
43+and that has a sales price before price reduction that is less than fifteen dollars per 1
44+item; 2
45+(3) Represent a sale of merchandise at reduced rates due to the cessation of business 3
46+operations and after the date of the first advertisement remain in business under 4
47+the same, or substantially the same, ownership or trade name, or continue to offer 5
48+for sale the same type of merchandise at the same location for more than one 6
49+hundred twenty days; 7
50+(4) Give or offer a rebate, discount, or anything of value to a person as an inducement 8
51+for selling consumer property or services in consideration of giving the names of 9
52+prospective purchasers or otherwise aiding in making a sale to another person, if 10
53+the earning of the rebate, discount, or other thing of value is contingent upon the 11
54+occurrence of an event subsequent to the time the person agrees to the sale; 12
55+(5) Engage in any scheme or plan for disposal or distribution of merchandise whereby 13
56+a participant pays a valuable consideration for the chance to receive compensation 14
57+primarily for introducing one or more additional persons into participation in the 15
58+planner's scheme or for the chance to receive compensation when the person 16
59+introduced by the participant introduces a new participant; 17
60+(6) Send, deliver, provide, mail, or cause to be sent, delivered, provided, or mailed 18
61+any bill or invoice for unordered property or unordered service provided; 19
62+(7) Advertise a rate, price, or fee for a hotel, motel, campsite, or other lodging 20
63+accommodation which is not in fact available to the public under the terms 21
64+advertised. It is not a violation of this subdivision to establish contract rates which 22
65+are different than public rates; 23
66+(8) Charge a rate, price, or fee for a hotel, motel, campsite, or other lodging 24
67+accommodation which is different than the rate, price, or fee charged on the first 25
68+night of the guest's stay unless, at the initial registration of the guest, a written 26
69+notification of each price, rate, or fee to be charged during the guest's reserved 27
70+continuous stay is delivered to the guest and an acknowledgment of receipt of the 28
71+notice is signed by the guest and kept by the innkeeper for the same period of time 29
72+as is required by § 34-18-21; 30
73+(9) Knowingly fail to mail or to deliver by electronic means to a future guest a written 31
74+confirmation of the date and rates of reservations made for any accommodation at 32
75+a hotel, motel, campsite, or other lodging accommodation when a written request 33
76+for confirmation is received from the future guest; 34 25.627.14 3 154
77+ Underscores indicate new language.
78+ Overstrikes indicate deleted language.
79+(10) Require money in advance of arrival or a handling fee in the event of cancellation 1
80+of any hotel, motel, campsite, or other lodging accommodation unless the 2
81+innkeeper has a written policy or a separate contract with the guest stating so that 3
82+is mailed or delivered by electronic means to the guest at or near the making of 4
83+the reservation; 5
84+(11) Knowingly advertise or cause to be listed through the internet or in a telephone 6
85+directory a business address that misrepresents where the business is actually 7
86+located or that falsely states that the business is located in the same area covered 8
87+by the telephone directory. This subdivision does not apply to a telephone service 9
88+provider, an internet service provider, or a publisher or distributor of a telephone 10
89+directory, unless the conduct proscribed in this subdivision is on behalf of the 11
90+provider, publisher, or distributor; 12
91+(12) Sell, market, promote, advertise, or otherwise distribute any card or other 13
92+purchasing mechanism or device that is not insurance that purports to offer 14
93+discounts or access to discounts from pharmacies for prescription drug purchases 15
94+if: 16
95+(a) The card or other purchasing mechanism or device does not expressly state 17
96+in bold and prominent type, prevalently placed, that discounts are not 18
97+insurance; 19
98+(b) The discounts are not specifically authorized by a separate contract with 20
99+each pharmacy listed in conjunction with the card or other purchasing 21
100+mechanism or device; or 22
101+(c) The discount or access to discounts offered, or the range of discounts or 23
102+access to the range of discounts, is misleading, deceptive, or fraudulent, 24
103+regardless of the literal wording. 25
104+The provisions of this subdivision do not apply to a customer discount or 26
105+membership card issued by a store or buying club for use in that store or buying 27
106+club, or a patient access program voluntarily sponsored by a pharmaceutical 28
107+manufacturer, or a consortium of pharmaceutical manufacturers, that provide free 29
108+or discounted prescription drug products directly to low income or uninsured 30
109+individuals either through a discount card or direct shipment; 31
110+(13) Send or cause to be sent an unsolicited commercial electronic mail message that 32
111+does not include in the subject line of such message "ADV:" as the first four 33
112+characters. If the message contains information that consists of explicit sexual 34
113+material that may only be viewed, purchased, rented, leased, or held in possession 35 25.627.14 4 154
114+ Underscores indicate new language.
115+ Overstrikes indicate deleted language.
116+by an individual eighteen years of age and older, the subject line of each message 1
117+shall include "ADV:ADLT" as the first eight characters. An unsolicited commercial 2
118+electronic mail message does not include a message sent to a person with whom 3
119+the initiator has an existing personal or business relationship or a message sent at 4
120+the request or express consent of the recipient; 5
121+(14) Violate the provisions of § 22-25-52; 6
122+(15) Knowingly fail to disclose the amount of any mandatory fee when reservations are 7
123+made by a future guest at a hotel, motel, campsite, or other lodging 8
124+accommodations. A mandatory fee under this subdivision includes any resort fee 9
125+or parking fee charged by the lodging accommodations whether or not the guest 10
126+utilizes the amenities or the parking facility for which the fee is assessed; or 11
127+(16) Cause misleading information to be transmitted to users of caller identification 12
128+technologies or otherwise block or misrepresent the origin of a telephone 13
129+solicitation. No provider of telephone caller identification services, 14
130+telecommunications, broadband, or voice over internet protocol service may be 15
131+held liable for violations of this subdivision committed by other individuals or 16
132+entities. It is not a violation of this subdivision: 17
133+(a) For a telephone solicitor to utilize the name and number of the entity the 18
134+solicitation is being made on behalf of rather than the name and number of 19
135+the telephone solicitor; 20
136+(b) If an authorized activity of a law enforcement agency; or 21
137+(c) If a court order specifically authorizes the use of caller identification 22
138+manipulation; or 23
139+(17) Violate section 3 or 4 of this Act. 24
140+Each act in violation of this section under one thousand dollars is a Class 1 25
141+misdemeanor. Each act in violation of this statute over one thousand dollars but under 26
142+one hundred thousand dollars is a Class 6 felony. Each act in violation of this section over 27
143+one hundred thousand dollars is a Class 5 felony. 28
144+Section 2. That a NEW SECTION be added to a NEW CHAPTER in title 58: 29
145+Terms used in this chapter mean: 30
146+(1) "Pharmaceutical manufacturer," any person engaged in the business of preparing, 31
147+producing, converting, processing, packaging, labeling, or distributing a 32
148+prescription drug, but not including a wholesale distributor or dispenser; 33 25.627.14 5 154
149+ Underscores indicate new language.
150+ Overstrikes indicate deleted language.
151+(2) "Pharmacy," any place within or outside this state, licensed by the State Board of 1
152+Pharmacy, where drugs are dispensed, and pharmaceutical care is provided to 2
153+residents of this state; 3
154+(3) "340B drug," a drug purchased through the 340B drug discount program by a 340B 4
155+entity; 5
156+(4) "340B drug discount program," a program that imposes limitations on the prices 6
157+of drugs purchased by covered entities, in accordance with 42 U.S.C. § 256b 7
158+(January 1, 2025); and 8
159+(5) "340B entity," a covered entity as defined in 42 U.S.C. § 256b(a)(4) (January 1, 9
160+2025). 10
161+Section 3. That a NEW SECTION be added to a new chapter in title 58: 11
162+A pharmaceutical manufacturer may not, directly or indirectly, deny, restrict, or 12
163+prohibit the acquisition of a 340B drug or the delivery of a 340B drug to a location that is 13
164+authorized to receive the drug by a 340B entity or pharmacy, unless receipt of the 340B 14
165+drug is prohibited by federal law. 15
166+Nothing in this section requires a pharmaceutical manufacturer to provide a 340B 16
167+drug price discount to a pharmacy. 17
168+Nothing in this section prohibits a pharmaceutical manufacturer from limiting 18
169+distribution of a drug in accordance with 21 U.S.C. § 355-1 (January 1, 2025). 19
170+Section 4. That a NEW SECTION be added to a new chapter in title 58: 20
171+A pharmaceutical manufacturer may not , directly or indirectly, require a 340B 21
172+entity or pharmacy to submit any claim or utilization data, as a condition for allowing the 22
173+acquisition of a 340B drug by, or delivery of a 340B drug to, a 340B entity, unless the 23
174+claim or utilization data sharing is required by federal law. 24
175+Nothing in this section prohibits a pharmaceutical manufacturer from conducting 25
176+an audit of a 340B entity, in accordance with 42 U.S.C. § 256b(a)(5)(C) (January 1, 2025). 26
177+Section 5. That a NEW SECTION be added to a new chapter in title 58: 27
178+In addition to any other remedy provided by law, a 340B entity or a pharmacy may 28
179+file a civil action against a pharmaceutical manufacturer for a violation of this Act, and 29
180+may request injunctive relief, actual and consequential damages, and reasonable 30
181+attorneys' fees and costs. 31