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http://www.insurancejournal.com/news/southeast/2009/01/28/97370.htm


Southeast News
Georgia Governor Seeks Limits on Biotech Lawsuits to Attract Firms

January 28, 2009

Georgia Governor Sonny Perdue is proposing tort reform legislation intended to protect Georgia-based biotech companies from product liability claims.

The proposed legislation would provide that Federal Drug Administration (FDA) approval is sufficient to protect against design defect and failure to warn lawsuits. Design defect lawsuits are based on the premise that a drug or device is faulty and caused injury, while failure to warn lawsuits maintain that health risks were not sufficiently communicated to doctors and patients.

The tort reform legislation, as proposed, would not apply if the biotech company has defrauded the FDA or the drug or device was used in an off-label manner.

Perdue says the legislation is intended to encourage biotech companies to locate in Georgia and support the companies that are currently located in the state. In order to qualify for the protection, companies would have to manufacture devices or sell pharmaceuticals, have corporate headquarters in Georgia and either employ more than 200 workers in manufacturing or research and development or have their principal place of research and development in Georgia.

"With this proposed legislation, we will cement our position as a leader in the biotech industry by enacting laws that respect the role of the federal Food and Drug Administration as the regulator of the safety of drugs and medical devices," said Gov. Perdue at the Georgia Chamber of Commerce's Eggs and Issues breakfast. "The FDA approval should mean something. It certainly should imply protection from tort lawsuits. The legislation will make Georgia an even more attractive environment for biotechnology companies."

"Georgia's stature in the biotech industry is growing, and this legislation will be a key tool in helping us recruit top-flight companies to the state," said Ken Stewart, commissioner of the Georgia Department of Economic Development. "Biotech is one of Georgia's strategic industries and provides the high-quality jobs we are focused on growing."

Georgia's stake in the biotechnology sector is buoyed by the presence in the state of the Centers for Disease Control and Prevention, the Carter Center, the American Cancer Society and CARE combined with research universities such as Georgia Tech, Emory University and the Medical College of Georgia. In May, Georgia will host the 2009 BIO International Convention for the first time, showcasing the state's importance in the industry.

Source: Georgia Department of Economic Development
www.georgia.org and www.georgiabiosciences.com
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http://www.msnbc.msn.com/id/29104024

Ga. Senate panel considers food safety changes
By GREG BLUESTEIN
Associated Press Writer
The Associated Press
updated 5:35 p.m. ET, Mon., Feb. 9, 2009

ATLANTA - Georgia lawmakers are wrestling with whether to adopt new food safety rules after a state peanut plant was linked to a salmonella outbreak that has sickened hundreds of people nationwide and may have caused as many as eight deaths.

The Senate Agriculture Committee debated a measure Monday that would require food makers to alert state inspectors within a day if a plant's internal tests show its products are contaminated. The bill would also force the companies to conduct the tests at least once a year to supplement surprise state and federal inspections.

The proposal is a response to the salmonella outbreak linked to a Peanut Corp. of America plant in Blakely, Ga. Investigators say the Lynchburg, Va.-based company knowingly shipped salmonella-laced products even after internal tests showed they were contaminated.

State law did not require the company to share those test results, and state officials say they may have been able to stop the outbreak if they'd known about them sooner.

"This gives us the tool to give us the red flag if a facility has some problems," said state Sen. John Bulloch, the chairman of the committee and the measure's sponsor.

Food safety experts, government groups and industry lobbies say they don't know of any other state that requires food manufacturers to share internal data.

Bulloch delayed a vote on the measure until later this week as he waits for more industry response, but lobbyists who chimed in Monday were generally supportive.

Kathy Kuzava, president of the Georgia Food Industry Association, said the public needs to be reassured that private industry and the government are bolstering food safety efforts.

Georgia Agriculture Commissioner Tommy Irvin called for the changes in the aftermath of the outbreak, but has tempered his remarks lately by urging Congress to adopt similar requirements.

"We could have a strong law in Georgia, but if it's not followed by Congress, we could find ourselves in a position of driving out business," Irvin told members of a House food safety panel.

His department came under fire after a state inspector who toured the plant in October noted only two minor violations, but less than three months later federal agents who swarmed the plant found roaches, mold, a leaking roof and other problems.

Irvin defended his inspectors Monday, saying the state didn't have the resources to match the federal agents. He said his inspector spent half a day probing the plant on foot, while federal agents spent about two weeks there and had a lift to inspect the roof.

He is also pressuring lawmakers grappling with $2.2 billion in cuts to Georgia's budget to bolster funding to his department, which has some 60 food inspectors and 15 unfilled positions.

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On the Net:

Senate Bill 80: http://www.legis.ga.gov
URL: http://www.msnbc.msn.com/id/29104024/