BILL REQ. #:  S-1254.2 



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SENATE BILL 5722
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State of Washington58th Legislature2003 Regular Session

By Senators Deccio, Winsley, Swecker, Oke, T. Sheldon, Hewitt, Horn, Morton, Carlson, Honeyford, Mulliken, Schmidt, Johnson, Thibaudeau, Zarelli, Finkbeiner, Roach, Benton, McCaslin, Rasmussen and Kohl-Welles

Read first time 02/07/2003.   Referred to Committee on Health & Long-Term Care.



     AN ACT Relating to prescription drug access; adding new sections to chapter 41.05 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The legislature finds that prescription drugs are vital to the health of many Washington residents, but that their high cost makes access to them increasingly difficult. However, consolidating the purchasing power of public and private entities and establishing a single entity to negotiate prices will result in a reduction in the price of drugs so that every resident of the state will have access to drugs at the lowest possible cost. The legislature intends to further this purpose by establishing the prescription drug access board and consortium of prescription drug purchasing entities.

NEW SECTION.  Sec. 2   A new section is added to chapter 41.05 RCW to read as follows:
     (1) The prescription drug access board is created to negotiate prescription drug prices on behalf of the consortium of prescription drug purchasing entities established under section 3 of this act. The authority shall provide staff and administrative support to the board.
     (2) The prescription drug access board shall be composed of seven members selected as provided in this subsection.
     (a) The governor shall select one member of the prescription drug access board from lists of nominees submitted by statewide organizations representing each of the following:
     (i) One representative of organized labor;
     (ii) One member who is a licensed physician;
     (iii) One member who is a licensed pharmacist;
     (iv) One member representing a health carrier licensed under Title 48 RCW;
     (v) One member representing consumers; and
     (vi) One member representing business.
     (b) The governor shall also appoint one member representing state agencies that purchase prescription drugs.
     (3) No person shall be appointed to or remain on the board who is employed by a pharmaceutical manufacturer, or who receives or has received remuneration, grants, or other thing of economic value from a pharmaceutical manufacturer if it could reasonably be expected that the remuneration, grant, or thing of economic value would influence the vote, action, or judgment of the person as a member of the board.
     (4) The governor shall appoint the initial members of the prescription drug access board to staggered terms not to exceed four years. Members appointed thereafter shall serve two-year terms. A board member whose term has expired shall continue to serve until his or her successor is appointed. Vacancies on the board must be filled for the balance of the unexpired term from nominee lists for the appropriate category under subsection (2) of this section. Members of the board shall not be compensated but shall be reimbursed for their expenses in accordance with RCW 43.03.050 and 43.03.060.
     (5) Board members shall select a chair and a vice-chair on an annual basis from the board membership.

NEW SECTION.  Sec. 3   A new section is added to chapter 41.05 RCW to read as follows:
     (1) The administrator shall establish a broad-based consortium of prescription drug purchasing entities consisting of state, local, and private entities to reduce the cost of prescription drugs for consortium participants, their employees, members, or clients.
     (2) Participation by local governments or private entities is purely voluntary. The administrator may charge reasonable administrative fees to those entities who choose to participate in the consortium.
     (3) Unaffiliated individuals who lack prescription drug coverage following payment of a reasonable annual enrollment fee shall receive reduced costs comparable to those negotiated by the consortium for its preferred prescription drugs.

NEW SECTION.  Sec. 4   A new section is added to chapter 41.05 RCW to read as follows:
     The consolidated prescription drug purchasing account is created in the custody of the state treasurer. All receipts from fees under section 3 of this act must be deposited into the account. Expenditures from the account may be used only for the purposes of sections 2 and 3 of this act. Only the administrator or the administrator's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

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