79R7870 KLA-F

By:  Armbrister                                                   S.B. No. 1168



A BILL TO BE ENTITLED

AN ACT

relating to supplemental rebates for prescription drugs provided 
under state health and human services programs.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 531.070(h), Government Code, is amended 
to read as follows:
	(h)  Subject to Subsection (i), the commission shall 
negotiate with manufacturers and labelers[, including generic 
manufacturers and labelers,] to obtain supplemental rebates for 
prescription drugs provided under:
		(1)  the Medicaid vendor drug program in excess of the 
Medicaid rebates required by 42 U.S.C. Section 1396r-8 and its 
subsequent amendments;
		(2)  the child health plan program; and                                       
		(3)  any other state program administered by the 
commission or a health and human services agency, including 
community mental health centers and state mental health hospitals.
	SECTION 2.  If before implementing any provision of this Act 
a state agency determines that a waiver or authorization from a 
federal agency is necessary for implementation of that provision, 
the agency affected by the provision shall request the waiver or 
authorization and may delay implementing that provision until the 
waiver or authorization is granted.
	SECTION 3.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.