hb180_LC_33_2532S_hs_4.html
08 LC 33 2532S

The House Committee on Health and Human Services offers the following substitute to HB 180:

A BILL TO BE ENTITLED
AN ACT

To amend Chapter 5A of Title 31 of the Official Code of Georgia Annotated, relating to the Department of Community Health, so as to provide that the Department of Community Health shall not provide health care coverage under the state health benefit plan, medical assistance program, PeachCare for Kids, or any other health benefit plan or policy administered by or on behalf of the state which includes certain prescription drugs and other health care products sold by Georgia biotechnology, biopharmaceutical, or pharmaceutical companies unless such drugs or products are not subject to certain access restrictions; to define certain terms; to provide for related matters; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.
Chapter 5A of Title 31 of the Official Code of Georgia Annotated, relating to the Department of Community Health, is amended by adding a new Code section to read as follows:
"31-5A-8.
(a) As used in this Code section, the term:
(1) 'Biopharmaceutical' means the application of biotechnology to the development of pharmaceutical products that improve human health.
(2) 'Biotechnology' means any technological application that uses biological systems, living organisms, or derivatives thereof to make or modify products or processes for specific use.
(3) 'Georgia biotechnology, biopharmaceutical, or pharmaceutical company' means a biotechnology, biopharmaceutical, or pharmaceutical company, or a corporate division of such a company:
(A) The principal activity of which is research and development, manufacturing, or sales of health care products in this state; and
(B)(i) That had a total economic impact in this state of not less than $60 million during the most recent taxable year; or
(ii) That has total capital investment in this state of not less than $100 million.
(4) 'Pharmaceutical' means of or pertaining to the knowledge or art of pharmacy or to the art of preparing medicines according to the rules or formulas of pharmacy.
(5) 'Research and development' means experimental or laboratory activity for the ultimate purpose of developing new products, improving existing products, developing new uses for existing products, or developing or improving methods for producing products.
(6) 'Total economic impact' means the sum of total employee payroll, investment in external research and development, the value of prescription drug samples provided to physicians, and the value of prescription drugs donated to low income individuals through patient assistance programs.
(b) The Department of Community Health shall not provide or enter into a contract to provide health care coverage under the state health benefit plan under Article 1 of Chapter 18 of Title 45, the medical assistance program under Article 7 of Chapter 4 of Title 49, the PeachCare for Kids program under Article 13 of Chapter 5 of Title 49, or any other health benefit plan or policy administered by or on behalf of the state of any prescription drug or other health care product having an approved indication from the federal Food and Drug Administration for use with humans and that is produced by a Georgia biotechnology, biopharmaceutical, or pharmaceutical company if such drug or product is subject to any access restriction such as a preferred drug list, prior approval, or step therapy. This subsection shall apply to all contracts entered into or renewed by the Department of Community Health on or after July 1, 2008."

SECTION 2.
All laws and parts of laws in conflict with this Act are repealed.