Signed by Governor Gavin Newsom

Vote Smart's Synopsis:

Vote to concur with House amendments and pass a bill that establishes the California Affordable Drug Manufacturing Act of 2020 and authorizes states to contract with drug manufacturers to produce low-cost generic drugs.

Highlights:

• Authorizes the California Health and Human Services Agency (CHHSA) to enter into partnerships to (Sec 1):

• Increase competition, lower prices, and address shortages in the market for generic prescription drugs;

• Reduce the cost of prescription drugs for public and private purchasers, taxpayers, and consumers; and

• Increase patient access to affordable drugs.

• Specifies that the CHHSA should enter partnerships with the intent that generic drugs be made widely available to purchasers, providers, and suppliers (Sec 1).

• Requires the generic prescription drugs to be produced or distributed by a drug company or generic drug manufacturer that is registered with the United States Food and Drug Administration (Sec 1).

• Requires the agency to enter into partnerships to (Sec 1):

• Produce generic drugs at a price that results in savings;

• Target failures in the market for generic drugs; and

• Improve patient access to affordable medications.

• Requires drugs to be made available at a transparent price without rebates, other than federally required ones (Sec 1).

• Authorizes the CHHSA to prioritize the selection of generic prescription drugs that will have the greatest impact on lowering drug costs to patients, increasing competition, addressing shortages, improving public health, or reducing the cost of prescription drugs to purchasers (Sec 1).

• Requires the partnerships entered into to include the production of at least one form of insulin (Sec 1).

• Requires the CHHSA to consult with public and private purchasers to determine the volume of each generic prescription drug that can be procured to support the market for a lower-cost drug (Sec 1).

• Requires the CHHSA to report to the Legislature a description of the status of all targeted drugs and an analysis of how the activities of the agency may impact competition, access to and cost of targeted drugs, and the costs of generic prescription drugs by July 1, 2022 (Sec 1).

• Requires the CHHSA to submit a report to the Legislature that assesses the feasibility of directly manufacturing and selling generic prescription drugs by July 1, 2023, if the Legislature appropriates the funds for the report (Sec 1).

• Specifies that the provisions are severable and the invalidity of one provision should not affect other provisions or applications (Sec 3).

Full Bill Text

Vote Smart's Synopsis:

Vote to amend and pass a bill that establishes the California Affordable Drug Manufacturing Act of 2020 and authorizes states to contract with drug manufacturers to produce low-cost generic drugs.

Highlights:

• Authorizes the California Health and Human Services Agency (CHHSA) to enter into partnerships to (Sec 1):

• Increase competition, lower prices, and address shortages in the market for generic prescription drugs;

• Reduce the cost of prescription drugs for public and private purchasers, taxpayers, and consumers; and

• Increase patient access to affordable drugs.

• Specifies that the CHHSA should enter partnerships with the intent that generic drugs be made widely available to purchasers, providers, and suppliers (Sec 1).

• Requires the generic prescription drugs to be produced or distributed by a drug company or generic drug manufacturer that is registered with the United States Food and Drug Administration (Sec 1).

• Requires the agency to enter into partnerships to (Sec 1):

• Produce generic drugs at a price that results in savings;

• Target failures in the market for generic drugs; and

• Improve patient access to affordable medications.

• Requires drugs to be made available at a transparent price without rebates, other than federally required ones (Sec 1).

• Authorizes the CHHSA to prioritize the selection of generic prescription drugs that will have the greatest impact on lowering drug costs to patients, increasing competition, addressing shortages, improving public health, or reducing the cost of prescription drugs to purchasers (Sec 1).

• Requires the partnerships entered into to include the production of at least one form of insulin (Sec 1).

• Requires the CHHSA to consult with public and private purchasers to determine the volume of each generic prescription drug that can be procured to support the market for a lower-cost drug (Sec 1).

• Requires the CHHSA to report to the Legislature a description of the status of all targeted drugs and an analysis of how the activities of the agency may impact competition, access to and cost of targeted drugs, and the costs of generic prescription drugs by July 1, 2022 (Sec 1).

• Requires the CHHSA to submit a report to the Legislature that assesses the feasibility of directly manufacturing and selling generic prescription drugs by July 1, 2023, if the Legislature appropriates the funds for the report (Sec 1).

• Specifies that the provisions are severable and the invalidity of one provision should not affect other provisions or applications (Sec 3).

Full Bill Text