Bill Text: CA AB2711 | 2015-2016 | Regular Session | Amended

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Bill Title: Pharmaceuticals: purchasing.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2016-11-30 - From committee without further action. [AB2711 Detail]

Download: California-2015-AB2711-Amended.html

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BILL NUMBER: AB 2711	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 6, 2016
	AMENDED IN ASSEMBLY  MARCH 17, 2016

INTRODUCED BY   Assembly Member Chiu

                        FEBRUARY 19, 2016

   An act to add and repeal Section 14981 of the Government Code,
relating to pharmaceuticals.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2711, as amended, Chiu. Pharmaceuticals: purchasing.
   Existing law authorizes the Department of General Services to
enter into contracts on a bid or negotiated basis with manufacturers
and suppliers of single source or multisource drugs and authorizes
the department to obtain from them discounts, rebates, or refunds as
permissible under federal law. Existing law authorizes the
department, in consultation with specified state agencies, to
investigate and implement other options and strategies to achieve the
greatest savings on prescription drugs with prescription drug
manufacturers and wholesalers, including, among others, coordinating
programs offered by pharmaceutical manufacturers that provide
prescription drugs for free or at reduced prices.
   This bill would require the department, on or before 
February   July  1, 2017, to submit a report to the
appropriate policy and fiscal committees of the Legislature on
activities that have been or will be undertaken pursuant to the above
provisions. The bill would require the report to include specified
information, such as the number and description of contracts entered
into with manufacturers and suppliers of drugs, including any
discounts, rebates, or refunds obtained. The bill would repeal the
reporting requirement on January 1, 2021. The bill would also state
the intent of the Legislature to enact future legislation that enacts
strategies to achieve the greatest savings on prescription drugs
with prescription drug manufacturers and wholesalers.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  It is the intent of the Legislature to enact
legislation that would include strategies to achieve the greatest
savings on prescription drugs with prescription drug manufacturers
and wholesalers.
  SEC. 2.  Section 14981 is added to the Government Code, to read:
   14981.  (a) On or before  February  July
 1, 2017, the department shall submit a report to the
appropriate policy and fiscal committees of the Legislature on
activities that have been or will be undertaken pursuant to this
chapter. The report shall include, but not be limited to, all of the
following:
   (1) The number and a description of contracts entered into with
manufacturers and suppliers of drugs pursuant to Section 14977.1,
including any discounts, rebates, or refunds obtained.
   (2) The number and a description of entities that elect to
participate in the coordinated purchasing program pursuant to Section
14977.5.
   (3) Other options and strategies that have been or will be
implemented pursuant to Sections 14978 and 14980.
   (4) Estimated costs and savings attributable to activities that
have been or will be undertaken pursuant to this chapter.
   (b) (1) The report in subdivision (a) shall be submitted in
compliance with Section 9795.
   (2) Pursuant to Section 10231.5, this section is repealed on
January 1, 2021.