HB139: HB139 Pharmacies; prohibit drug manufacturer and wholesalers from preventing a licensed pharmacy from acquiring drugs from entities that participate in a particular federal drug discount program

25 LC 46 1023 House Bill 139 By: Representatives Jones of the 25th, Hawkins of the 27th, Hatchett of the 155th, Cannon of the 172nd, Jackson of the 128th, and others A BILL TO BE ENTITLED AN ACT To amend Article 6 of Chapter 4 of Title 26 of the Official Cod e of Georgia Annotated,1 relating to pharmacies, so as to prohibit drug manufacturers and wholesalers from preventing2 a licensed pharmacy from acquiring and dispensing drugs purchas ed from entities that3 participate in a particular federal drug discount program; to p rovide for definitions; to4 provide for related matters; to repeal conflicting laws; and for other purposes.5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6 SECTION 1.7 Article 6 of Chapter 4 of Title 26 of the Official Code of Geor gia Annotated, relating to8 pharmacies, is amended by adding a new Code section to read as follows:9 "26-4-120.10 (a) As used in this Code section, the term:11 (1) 'Contract pharmacy arrangement' means a legal agreement be tween a hospital or12 other healthcare provider and a pharmacy where the pharmacy agr ees to dispense13 medications to the hospital's or other healthcare provider's patients at a discounted price.14 (2) 'Covered entity' means an entity participating in or autho rized to participate in the15 federal 340B drug discount program, as described in 42 U.S.C. Section 256b, including16 H. B. 139 - 1 - 25 LC 46 1023 its pharmacy, or any pharmacy contracted with the participating entity to dispense drugs17 purchased through such program.18 (b) Neither a manufacturer nor a wholesale distributor shall d eny, restrict, prohibit, or19 otherwise prevent, either directly or indirectly, the acquisiti on by or dispensing of drugs20 from a pharmacy licensed pursuant to this chapter that receives drugs purchased under a21 contract pharmacy arrangement with a covered entity.22 (c) Neither a manufacturer nor a wholesale distributor shall d eny, restrict, prohibit, or23 otherwise prevent, either directly or indirectly, a pharmacy licensed pursuant to this chapter24 from contracting or participating with a covered entity by denying access to drugs that are25 manufactured or distributed by such manufacturer or wholesale distributor.26 (d) Neither a manufacturer or a wholesale distributor nor an agent or an affiliate of such27 manufacturer or wholesale distributor shall, either directly or indirectly, require a covered28 entity to submit any claims or utilization data as a condition for allowing the acquisition29 of drugs by or delivery of drugs to a covered entity unless the claims or utilization data30 sharing is required by the United States Department of Health and Human Services.31 (e)(1) A violation of this Code section shall constitute an un fair or deceptive act or32 practice and shall be a violation of Part 2 of Article 15 of Chapter 1 of Title 10, the 'Fair33 Business Practices Act of 1975.'34 (2) A violation of this Code section may be penalized as provided in this chapter or any35 other applicable provision of law in this state, including, but not limited to, the 'Fair36 Business Practices Act of 1975.'"37 SECTION 2.38 All laws and parts of laws in conflict with this Act are repealed.39 H. B. 139 - 2 -