Bill Text: CA SB642 | 2019-2020 | Regular Session | Amended
Bill Title: Pharmacy benefit management: Prescription Acquisition and Adjudication Agency.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2020-02-03 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB642 Detail]
Download: California-2019-SB642-Amended.html
Amended
IN
Senate
April 22, 2019 |
Senate Bill | No. 642 |
Introduced by Senator Stone |
February 22, 2019 |
LEGISLATIVE COUNSEL'S DIGEST
Existing law establishes the State Department of Public Health within the California Health and Human Services Agency, and requires the appointment of a State Public Health Officer to serve as the director of the State Department of Public Health, as prescribed.
This bill would make technical, nonsubstantive changes to that provision.
Digest Key
Vote:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 1368.8 is added to the Health and Safety Code, to read:1368.8.
(a) On and after July 1, 2021, a health care service plan shall not enter into, renew, or extend a contract for pharmacy benefit manager services.SEC. 2.
Division 40 (commencing with Section 60000) is added to the Health and Safety Code, to read:DIVISION 40. Prescription Acquisition and Adjudication Agency
60000.
(a) The Prescription Acquisition and Adjudication Agency is hereby established.60010.
(a) The Division of Pharmacy Provider Contracting shall offer pharmacy benefit manager services to health care service plans and health insurers in California.60020.
(a) The Division of Pharmaceutical Negotiations shall, in accordance with agreements entered into by the agency pursuant to Section 60010, negotiate with pharmaceutical manufacturers for discounts and rebates for the plans or insurers.60030.
(a) The Pharmaceutical Discount Fund is hereby created in the State Treasury.60040.
(a) The agency shall establish a process for contracting and negotiating pursuant to Sections 60010 and 60020. A contract entered into pursuant to Section 60010 or 60020 shall be exempt from Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, and shall be exempt from the review or approval of the Department of General Services.SEC. 3.
Section 10123.66 is added to the Insurance Code, to read:10123.66.
(a) On and after July 1, 2021, a health insurer shall not enter into, renew, or extend a contract for pharmacy benefit manager services.SEC. 4.
The Legislature finds and declares that Section 2 of this act, which adds Division 40 (commencing with Section 60000) of the Health and Safety Code, imposes a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:SEC. 5.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.(a)There is in state government an executive officer known as the State Public Health Officer, who shall be appointed by the Governor, subject to confirmation by the Senate, and shall hold office at the pleasure of the Governor. The State Public Health Officer 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.
(b)The State Public Health Officer shall serve as the director of, and have control over, the State Department of Public Health.
(c)Any statutory reference to “director,” “the
Director of Health Services,” “the Director of Public Health,” or the “Director of the State Department of Public Health,” regarding a function transferred to the State Department of Public Health pursuant to Chapter 2 (commencing with Section 131050), is deemed to, instead, refer to the State Public Health Officer.
(d)Any statutory reference to “department” or “state department” regarding a function transferred to the State Department of Public Health pursuant to Chapter 2 (commencing with Section 131050), shall refer to the State Department of Public Health.
(e)The director shall be a licensed physician and surgeon pursuant to Chapter 5 (commencing with Section 2000) of Division 2 of the Business and Professions Code, and have demonstrated medical, public health, and
management experience.