SB 838: Health care: prescription drugs.

Existing law, the California Affordable Drug Manufacturing Act of 2020, requires the California Health and Human Services Agency (CHHSA) to enter into partnerships, in consultation with other state departments as necessary to, among other things, increase patient access to affordable drugs. Existing law requires CHHSA to enter into such partnerships to produce or distribute at least one form of insulin, if a viable pathway for manufacturing a more affordable form of insulin exists at a price that results in savings. Existing law, for the purposes of implementing the California Affordable Drug Manufacturing Act of 2020, until December 31, 2027, permits CHHSA and its departments to enter into exclusive or nonexclusive contracts on a bid or negotiated basis.

This bill would require CHHSA to establish metrics to measure progress and efficiency, and remedies in the case those metrics are not met, and include those metrics and remedies in any contract entered into pursuant to these provisions. The bill would eliminate the viability requirement for the manufacturing of insulin pursuant to these provisions and would require any partnership, among other things, to consider guaranteeing priority access to insulin supply for the state.

This bill would require, upon appropriation by the Legislature, the development of a California-based manufacturing facility for insulin with the intent of creating high-skill, high-paying jobs within the state.