By Maxey                                               H.B. No. 417
         77R428 MCK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to requiring drug manufacturers to provide certain
 1-3     information to the Texas Department of Health.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter E, Chapter 431, Health and Safety
 1-6     Code, is amended by adding Section 431.116 to read as follows:
 1-7           Sec. 431.116.  AVERAGE MANUFACTURER PRICE. (a)  In this
 1-8     section, "average manufacturer price" has the meaning assigned by
 1-9     42 U.S.C. Section 1396r-8(k)(1), as amended.
1-10           (b)  A person who manufactures a drug that is sold in this
1-11     state shall annually file with the department:
1-12                 (1)  the average manufacturer price for the drug; and
1-13                 (2)  the price that each wholesaler in this state pays
1-14     the manufacturer to purchase the drug.
1-15           (c)  The department and the attorney general may investigate
1-16     the manufacturer to determine the accuracy of the information
1-17     provided under Subsection (a).
1-18           SECTION 2.  This Act takes effect September 1, 2001.