The legislation is being called the Physicians Payments Sunshine Act and would require drug and device makers to disclose the amount of money they give docs through payments, gifts, honoraria, travel and other means. Penalties would range from $10,000 to $100,000 per violation.

“Right now the public has no way to know whether a doctor’s been given money that might affect prescribing habits,” says Chuck Grassley, the Republican Senator from Iowa, who is leading the effort. “This bill is about letting the sun shine in so that the public can know. Whether it’s dinner at a restaurant or tens of thousands of dollars or more in fees and travel, patients shouldn’t be in the dark about whether their doctors are getting money from drug and device makers.”

The newly proposed federal legislation builds on similar initiatives in Minnesota, Vermont, Maine and West Virginia, and would apply to manufacturers with $100 million or more in annual gross revenues. The bill requires the Secretary of Health and Human Services to create a website and post payment information in a clear and understandable manner. The bill was introduced by Grassley and Herb Kohl, and is co-sponsored by Claire McCaskill, Chuck Schumer, Amy Klobuchar and Ted Kennedy.