"NEW SECTION.  Sec. 1126   A new section is added to chapter 74.46 RCW to read as follows:
     (1) The department of social and health services as the state medicaid agency shall require all generic drug manufacturers whose products are to be provided to medicaid recipients to compete in a competitive bid process created by the agency to ensure that the agency is providing medicaid recipients with quality generic drugs at a competitively bid low cost.
     (2) For the purposes of this section:
     (a) "Competitive bid process" means a transparent procurement method in which bids from generic drug manufacturers are invited by openly advertising the scope, specifications, and terms and conditions of proposed contracts as well as the criteria by which the bids will be evaluated. The objective of competitive bidding is to establish the lowest price at which generic drugs may be procured by stimulating competition and preventing favoritism.
     (b) "Generic drugs" means copies of brand name drugs that are no longer protected by patents. Generic drugs are drugs that contain the same active ingredients, are identical in strength, dosage form, and route of administration as the brand name innovator drug, and has the same indications, dosing, and labeling, and provides the same efficacy and safety profile to patients as the brand name innovator drug.
     (c) "Generic drug manufacturers" means those manufacturers that manufacture generic drugs and distribute those generic drugs in this state.
     (3) This section expires July 1, 2013."