Georgia CommonsHouse · Introduced · 2025-2026 Regular Session
HB 1332: Georgia Buy American Medicine Act; enact
Last action March 3, 2026 · House Committee Favorably Reported By Substitute
A Georgia House bill would require hospitals and other health care providers that receive state funds to prefer American-made prescription drugs when buying medicine, with exceptions for shortages, cost, or safety.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Comm Sub version, the latest the General Assembly's website lists.
In plain language
Georgia hospitals and clinics that get state money currently can buy prescription drugs from any manufacturer, foreign or domestic. This bill, called the Georgia Buy American Medicine Act, would require those providers to give preference to 'American manufactured pharmaceuticals,' meaning drugs made and finished at a U.S. facility registered with the federal Food and Drug Administration, whenever such drugs are reasonably available. The preference only applies to spending of state funds, not federal money or federally regulated purchases. Providers could still buy foreign-made drugs if an American version isn't reasonably available, would harm patient safety, is needed during a shortage or emergency, or costs more than 20 percent extra. Providers must document any exception and keep records for three years. The Department of Community Health would write enforcement rules, and providers that repeatedly or willfully violate the law could face corrective action or lose eligibility for state funds. The law would take effect as soon as the Governor signs it.
What the bill does
- Adds a new Georgia law (O.C.G.A. § 31-2-20) requiring hospitals, health systems, clinics, and medical facilities that receive state funds to prefer American-made prescription drugs when reasonably available.
- Limits the preference to spending of state funds only, exempting federal money or purchases governed by federal procurement rules.
- Creates exceptions letting providers buy foreign-made drugs if the American version is unavailable, unsafe, needed during a shortage or emergency, or costs more than 20 percent more.
- Requires providers to document and keep records of any exception for at least three years.
- Directs the Department of Community Health to write enforcement rules and allows corrective action plans or loss of state funding eligibility for repeated or willful violations.
Who it affects
Hospitals, health systems, clinics, and medical facilities in Georgia that receive state funds; the Department of Community Health, which must write and enforce the rules; physicians, whose independent medical judgment is protected; and patients who receive prescription drugs through these providers.
Why it matters
Providers that rely on state funding would need new purchasing procedures and paperwork to track whether drugs are American-made, potentially affecting which medications are stocked and how quickly supply decisions can be made, especially during shortages or when domestic drugs cost significantly more.
Key provisions
- Section 2 lists legislative findings about drug safety, FDA inspection differences, and reliance on foreign drug manufacturing.
- Section 3 adds O.C.G.A. § 31-2-20, defining 'American manufactured pharmaceutical,' 'healthcare provider,' 'reasonably available,' 'state funds,' and 'substantially higher' (over 20 percent).
- Subsection (b) requires state-funded healthcare providers to prefer American-made pharmaceuticals when reasonably available.
- Subsection (c) limits the preference to state funds, excluding federal funds or federally regulated procurement.
- Subsection (d) lists four exceptions allowing purchase of non-U.S.-made drugs, including unavailability, patient safety risk, emergencies, and substantially higher cost.
- Subsection (e) requires documentation of exceptions kept for at least three years.
- Subsection (g) authorizes corrective action plans or suspension/termination of state funding eligibility for repeated or willful noncompliance.
- Section 4 makes the Act effective immediately upon the Governor's signature or becoming law without signature.
From the bill
“Any healthcare provider receiving state funds shall give preference to American manufactured pharmaceuticals when procuring prescription drugs for use in patient care, provided such pharmaceuticals are reasonably available.”
“'American manufactured pharmaceutical' means a prescription drug or medication that is manufactured, processed, and finished at a facility located within the United States and registered with the federal Food and Drug Administration.”
“Failure to comply with this Code section may result in corrective action plans or, for repeated or willful violations, suspension or termination of eligibility to receive state funds.”
Discussed in meetings (5)
The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.
House Health Committee, March 2, 2026
From 0:23:21 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 1332 would require healthcare providers spending state funds to prefer American-manufactured medicines. The sponsor framed reliance on overseas production as a national security concern and said the preference could encourage domestic investment. The sponsor described exceptions for availability, patient safety, clinical outcomes and higher costs, along with three-year documentation requirements and possible corrective action or loss of eligibility for state funds. One member questioned whether the exceptions weakened enforcement, then said they addressed concerns about shortages. Another member warned that a 20% price increase could threaten rural hospitals and questioned requiring providers to also show reduced patient access before using the cost exception. Other members sought assurance that the word preference preserved clinical judgment and purchasing flexibility. The sponsor agreed that providers would retain considerable leeway. Members initially proposed deleting the patient-access condition, then agreed instead to change the connection from and to or, making substantially higher cost and significantly limited access separate grounds for an exception. The committee adopted the amendment and approved the bill by voice votes.
House Rules Committee, March 4, 2026
From 1:14:25 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 1332 would require state-funded hospitals and healthcare facilities to prefer American-made medicines, with exceptions for emergencies, unavailable products and substantially higher costs. The sponsor argued that domestic production is a national security concern and said 90 to 92 percent of pharmaceuticals are made abroad. Members asked whether higher costs or penalties could harm rural and safety-net hospitals. The sponsor said the exceptions offered protection, while acknowledging that funding could be withheld for noncompliance. The sponsor said the Georgia Hospital Association had not taken a position and reported unanimous committee approval. The sponsor also cited a pharmaceutical company's planned domestic manufacturing investment, tentatively estimating it at about $30 billion. No decision was recorded.
Status timeline
- House Committee Favorably Reported By Substitute (House)
- House Second Readers (House)
- House First Readers (House)
- House Hopper (House)
Sponsors
- David Clark (R, HD-100)
- Steven Sainz (R, HD-180)
- Clint Crowe (R, HD-118)
- Tim Fleming (R, HD-114)
- Johnny Chastain (R, HD-7)
- Karen Mathiak (R, HD-82)
Topics
- prescription drug policy
- hospital funding
- Buy American laws
- drug safety
- state health regulations