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

California Assembly Bill 2711 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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

BILL NUMBER: AB 2711	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 17, 2016

INTRODUCED BY   Assembly Member Chiu

                        FEBRUARY 19, 2016

   An act to  amend   add and repeal 
Section  127005 of   14981 of  the 
Health and Safety   Government  Code, relating to
 public health.   pharmaceuticals. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2711, as amended, Chiu.  Office of Statewide Health
Planning and Development.   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 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.  
   Existing law establishes the Office of Statewide Health Planning
and Development within the California Health and Human Services
Agency. Existing law places the office under the control of an
executive officer known as the Director of Statewide Health Planning
and Development. Existing law provides that the director is appointed
by the Governor, subject to confirmation by the Senate, and holds
office at the pleasure of the Governor.  
   This bill would make technical, nonsubstantive changes to that
provision. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  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 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.  
  SECTION 1.    Section 127005 of the Health and
Safety Code is amended to read:
   127005.  The office is under the control of an executive officer
known as the Director of Statewide Health Planning and Development.
The director shall be appointed by the Governor, subject to
confirmation by the Senate, and hold office at the pleasure of the
Governor. He or she shall receive the annual salary provided by
Article 1 (commencing with Section 11550) of Chapter 6 of Part 1 of
Division 3 of Title 2 of the Government Code.