3 | 2 | | 119THCONGRESS |
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4 | 3 | | 1 |
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5 | 4 | | STSESSION S. 1095 |
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6 | 5 | | To enable the Federal Trade Commission to deter filing of sham citizen |
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7 | 6 | | petitions to cover an attempt to interfere with approval of a competing |
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8 | 7 | | generic drug or biosimilar, to foster competition, and facilitate the effi- |
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9 | 8 | | cient review of petitions filed in good faith to raise legitimate public |
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10 | 9 | | health concerns, and for other purposes. |
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11 | 10 | | IN THE SENATE OF THE UNITED STATES |
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12 | 11 | | MARCH24, 2025 |
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13 | 12 | | Ms. K |
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14 | 13 | | LOBUCHAR (for herself, Mr. GRASSLEY, Mr. DURBIN, Mr. |
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15 | 14 | | B |
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16 | 15 | | LUMENTHAL, Mr. CRUZ, Mr. WELCH, and Mr. BOOKER) introduced the |
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17 | 16 | | following bill; which was read twice and referred to the Committee on the |
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18 | 17 | | Judiciary |
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23 | 18 | | A BILL |
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24 | 19 | | To enable the Federal Trade Commission to deter filing |
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25 | 20 | | of sham citizen petitions to cover an attempt to interfere |
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26 | 21 | | with approval of a competing generic drug or biosimilar, |
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27 | 22 | | to foster competition, and facilitate the efficient review |
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28 | 23 | | of petitions filed in good faith to raise legitimate public |
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29 | 24 | | health concerns, and for other purposes. |
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30 | 25 | | Be it enacted by the Senate and House of Representa-1 |
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31 | 26 | | tives of the United States of America in Congress assembled, 2 |
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35 | 30 | | SECTION 1. SHORT TITLE. 1 |
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36 | 31 | | This Act may be cited as the ‘‘Stop Significant and 2 |
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37 | 32 | | Time-wasting Abuse Limiting Legitimate Innovation of 3 |
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38 | 33 | | New Generics Act’’ or the ‘‘Stop STALLING Act’’. 4 |
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39 | 34 | | SEC. 2. FEDERAL TRADE COMMISSION ENFORCEMENT 5 |
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40 | 35 | | AGAINST SHAM PETITIONS. 6 |
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41 | 36 | | (a) D |
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42 | 37 | | EFINITIONS.—In this section: 7 |
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43 | 38 | | (1) C |
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44 | 39 | | OMMISSION.—The term ‘‘Commission’’ 8 |
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45 | 40 | | means the Federal Trade Commission. 9 |
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46 | 41 | | (2) C |
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47 | 42 | | OVERED APPLICATION .—The term ‘‘cov-10 |
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48 | 43 | | ered application’’ means an application filed pursu-11 |
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49 | 44 | | ant to subsection (b)(2) or (j) of section 505 of the 12 |
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50 | 45 | | Federal Food, Drug, and Cosmetic Act (21 U.S.C. 13 |
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51 | 46 | | 355) or section 351(k) of the Public Health Service 14 |
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52 | 47 | | Act (42 U.S.C. 262(k)). 15 |
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53 | 48 | | (3) C |
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54 | 49 | | OVERED PETITION.—The term ‘‘covered 16 |
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55 | 50 | | petition’’ means a petition, or a supplement to a pe-17 |
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56 | 51 | | tition, filed under section 505(q) of the Federal 18 |
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57 | 52 | | Food, Drug, and Cosmetic Act (21 U.S.C. 355(q)). 19 |
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58 | 53 | | (4) P |
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59 | 54 | | ERSON.—The term ‘‘person’’— 20 |
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60 | 55 | | (A) means an individual or entity; and 21 |
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61 | 56 | | (B) includes— 22 |
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62 | 57 | | (i) a successor or an assign of an enti-23 |
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63 | 58 | | ty; 24 |
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67 | 62 | | (ii) a joint venture, subsidiary, part-1 |
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68 | 63 | | nership, division, group, or affiliate con-2 |
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69 | 64 | | trolled by an entity; and 3 |
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70 | 65 | | (iii) a successor or an assign of a joint 4 |
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71 | 66 | | venture, subsidiary, partnership, division, 5 |
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72 | 67 | | group, or affiliate controlled by an entity. 6 |
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73 | 68 | | (5) S |
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74 | 69 | | ERIES OF COVERED PETITIONS .—The 7 |
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75 | 70 | | term ‘‘series of covered petitions’’ means any group 8 |
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76 | 71 | | of more than 1 covered petition relating to the same 9 |
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77 | 72 | | covered application. 10 |
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78 | 73 | | (6) S |
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79 | 74 | | HAM.—The term ‘‘sham’’ means— 11 |
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80 | 75 | | (A) a covered petition that— 12 |
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81 | 76 | | (i) is objectively baseless; and 13 |
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82 | 77 | | (ii) attempts to use a governmental 14 |
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83 | 78 | | process, as opposed to the outcome of that 15 |
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84 | 79 | | process, to interfere with the business of a 16 |
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85 | 80 | | competitor; or 17 |
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86 | 81 | | (B) a series of covered petitions that at-18 |
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87 | 82 | | tempts to use a governmental process, as op-19 |
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88 | 83 | | posed to the outcome of that process, to inter-20 |
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89 | 84 | | fere with the business of a competitor. 21 |
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90 | 85 | | (b) V |
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91 | 86 | | IOLATION.—A person submitting or causing the 22 |
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92 | 87 | | submission of a covered petition or a series of covered peti-23 |
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93 | 88 | | tions that is a sham shall be liable for engaging in an 24 |
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97 | 92 | | unfair method of competition under section 5(a)(1) of the 1 |
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98 | 93 | | Federal Trade Commission Act (15 U.S.C. 45(a)(1)). 2 |
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99 | 94 | | (c) C |
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100 | 95 | | IVILACTION.— 3 |
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101 | 96 | | (1) I |
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102 | 97 | | N GENERAL.—If the Commission has rea-4 |
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103 | 98 | | son to believe that the submission of a covered peti-5 |
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104 | 99 | | tion or a series of covered petitions constitutes a vio-6 |
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105 | 100 | | lation of section 5(a)(1) of the Federal Trade Com-7 |
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106 | 101 | | mission Act (15 U.S.C. 45(a)(1)), the Commission 8 |
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107 | 102 | | may commence a civil action to recover a civil pen-9 |
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108 | 103 | | alty and seek other appropriate relief in a district 10 |
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109 | 104 | | court of the United States against any person that 11 |
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110 | 105 | | submitted or caused to be submitted such covered 12 |
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111 | 106 | | petition or such series of covered petitions. 13 |
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112 | 107 | | (2) P |
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113 | 108 | | RESUMPTION.—In a civil action under 14 |
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114 | 109 | | paragraph (1), a covered petition shall be presumed 15 |
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115 | 110 | | to be part of a series of covered petitions that is a 16 |
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116 | 111 | | sham under subsection (b) of this section if— 17 |
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117 | 112 | | (A) the Secretary of Health and Human 18 |
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118 | 113 | | Services— 19 |
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119 | 114 | | (i) has determined that the covered 20 |
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120 | 115 | | petition was submitted with the primary 21 |
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121 | 116 | | purpose of delaying the approval of a cov-22 |
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122 | 117 | | ered application; and 23 |
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126 | 121 | | (ii) has referred such determination to 1 |
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127 | 122 | | the Commission in writing, including a rea-2 |
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128 | 123 | | soned basis for the determination; and 3 |
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129 | 124 | | (B) the covered petition was part of a se-4 |
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130 | 125 | | ries of covered petitions. 5 |
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131 | 126 | | (3) E |
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132 | 127 | | XCEPTION.—The presumption in para-6 |
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133 | 128 | | graph (2) shall not apply if the defendant estab-7 |
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134 | 129 | | lishes, by a preponderance of the evidence, that the 8 |
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135 | 130 | | series of covered petitions that includes the covered 9 |
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136 | 131 | | petition referred to the Commission by the Secretary 10 |
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137 | 132 | | of Health and Human Services is not a sham. 11 |
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138 | 133 | | (4) C |
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139 | 134 | | IVIL PENALTY.—In an action under para-12 |
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140 | 135 | | graph (1), any person that has been found liable for 13 |
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141 | 136 | | a violation of section 5(a)(1) of the Federal Trade 14 |
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142 | 137 | | Commission Act (15 U.S.C. 45(a)(1)) shall be sub-15 |
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143 | 138 | | ject to a civil penalty for each violation of not more 16 |
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144 | 139 | | than the greater of— 17 |
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145 | 140 | | (A) any revenue earned from the sale by 18 |
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146 | 141 | | such person of any drug product, referenced in 19 |
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147 | 142 | | a covered application that was the subject of a 20 |
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148 | 143 | | covered petition or a series of covered petitions 21 |
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149 | 144 | | that is a sham, during the period during which 22 |
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150 | 145 | | the covered petition or series of covered peti-23 |
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151 | 146 | | tions was under review by the Secretary of 24 |
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152 | 147 | | Health and Human Services; or 25 |
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156 | 151 | | (B) $50,000 for each calendar day that 1 |
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157 | 152 | | each covered petition that is a sham or that was 2 |
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158 | 153 | | part of a series of covered petitions that is a 3 |
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159 | 154 | | sham was under review by the Secretary of 4 |
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160 | 155 | | Health and Human Services. 5 |
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161 | 156 | | (5) R |
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162 | 157 | | EVIEW OF REFERRAL .—No referral by the 6 |
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163 | 158 | | Secretary of Health and Human Services under 7 |
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164 | 159 | | paragraph (2)(A) shall be subject to judicial review, 8 |
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165 | 160 | | except as a third-party claim asserted by the defend-9 |
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166 | 161 | | ant under section 706(2)(A) of title 5, United States 10 |
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167 | 162 | | Code, against the Secretary of Health and Human 11 |
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168 | 163 | | Services or the Department of Health and Human 12 |
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169 | 164 | | Services, as part of a civil action commenced under 13 |
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170 | 165 | | paragraph (1). 14 |
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171 | 166 | | (6) A |
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172 | 167 | | NTITRUST LAWS.—Nothing in this section 15 |
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173 | 168 | | shall modify, impair, limit, or supersede the applica-16 |
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174 | 169 | | bility of the antitrust laws, as defined in subsection 17 |
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175 | 170 | | (a) of the first section of the Clayton Act (15 U.S.C. 18 |
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176 | 171 | | 12), and of section 5 of the Federal Trade Commis-19 |
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177 | 172 | | sion Act (15 U.S.C. 45) to the extent that it applies 20 |
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178 | 173 | | to unfair methods of competition. 21 |
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179 | 174 | | (7) R |
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180 | 175 | | ULE OF CONSTRUCTION .—The civil pen-22 |
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181 | 176 | | alty provided in this subsection is in addition to, and 23 |
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182 | 177 | | not in lieu of, any other remedies provided by Fed-24 |
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183 | 178 | | eral law, including under section 16 of the Clayton 25 |
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187 | 182 | | Act (15 U.S.C. 26) or under section 13(b) of the 1 |
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188 | 183 | | Federal Trade Commission Act (15 U.S.C. 53(b)). 2 |
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189 | 184 | | (d) A |
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190 | 185 | | PPLICABILITY.—This section shall apply to any 3 |
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191 | 186 | | covered petition submitted on or after the date of enact-4 |
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192 | 187 | | ment of this Act. 5 |
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193 | 188 | | (e) R |
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194 | 189 | | ULE OFCONSTRUCTION.—Nothing in this Act 6 |
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195 | 190 | | shall be construed to limit any authority of the Commis-7 |
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196 | 191 | | sion under any other provision of law. 8 |
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197 | 192 | | SEC. 3. SEVERABILITY. 9 |
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198 | 193 | | If any provision of this Act or the application of such 10 |
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199 | 194 | | provision to any person or circumstance is held to be un-11 |
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200 | 195 | | constitutional, the remainder of this Act and the applica-12 |
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201 | 196 | | tion of the provisions of such Act to any person or cir-13 |
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202 | 197 | | cumstance shall not be affected. 14 |
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203 | | - | VerDate Sep 11 2014 18:55 Apr 11, 2025 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1095.RS S1095 |
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204 | | - | ssavage on LAPJG3WLY3PROD with BILLS Calendar No. |
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205 | | - | 45 |
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206 | | - | 119 |
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207 | | - | TH |
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208 | | - | CONGRESS |
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209 | | - | 1 |
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210 | | - | ST |
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211 | | - | S |
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212 | | - | ESSION |
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213 | | - | |
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214 | | - | S. 1095 A BILL |
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215 | | - | To enable the Federal Trade Commission to deter |
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216 | | - | filing of sham citizen petitions to cover an at- |
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217 | | - | tempt to interfere with approval of a competing |
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218 | | - | generic drug or biosimilar, to foster competition, |
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219 | | - | and facilitate the efficient review of petitions |
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220 | | - | filed in good faith to raise legitimate public |
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221 | | - | health concerns, and for other purposes. |
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222 | | - | A |
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223 | | - | PRIL |
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224 | | - | 10, 2025 |
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225 | | - | Reported without amendment |
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226 | | - | VerDate Sep 11 2014 18:55 Apr 11, 2025 Jkt 059200 PO 00000 Frm 00008 Fmt 6651 Sfmt 6651 E:\BILLS\S1095.RS S1095 |
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| 198 | + | Æ |
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| 199 | + | VerDate Sep 11 2014 00:08 Mar 29, 2025 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6301 E:\BILLS\S1095.IS S1095 |
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