By Maxey                                              H.B. No. 1116
         77R432 MCK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to establishing a maximum sales price for drugs sold to
 1-3     certain entities.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Subchapter E, Chapter 431, Health and Safety Code,
 1-6     is amended by adding Section 431.116 to read as follows:
 1-7           Sec. 431.116.  MAXIMUM SALE PRICE.  A person may not sell a
 1-8     drug to a public entity for more than the reimbursement rate for
 1-9     the drug under the Medicaid vendor drug program.
1-10           SECTION 2. The change in law made by this Act by the addition
1-11     of Section 431.116, Health and Safety Code, applies only to a sale
1-12     made on or after September 1, 2001, under a contract executed or
1-13     renewed on or after that date.
1-14           SECTION 3. This Act takes effect September 1, 2001.