Senate Bill sb0904c1
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Florida Senate - 2001 CS for SB 904
By the Committee on Health, Aging and Long-Term Care; and
Senators Garcia and Silver
317-1764-01
1 A bill to be entitled
2 An act relating to public records and meetings;
3 providing an exemption from the public records
4 law for certain records relating to
5 supplemental drug rebates; providing an
6 exemption from the public meetings law for
7 certain portions of meetings of the Medicaid
8 Pharmaceutical and Therapeutics Committee;
9 providing for future legislative review and
10 repeal; providing a statement of public
11 necessity; providing a contingent effective
12 date.
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14 Be It Enacted by the Legislature of the State of Florida:
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16 Section 1. (1) Trade secrets, rebate amount, percent
17 of rebate, manufacturer's pricing, and supplemental rebates
18 which are contained in records of the Agency for Health Care
19 Administration and its agents with respect to supplemental
20 rebate negotiations and which are prepared pursuant to a
21 supplemental rebate agreement under section 409.91195, Florida
22 Statutes, are confidential and exempt from section 119.07,
23 Florida Statutes, and Section 24(a) of Article I of the State
24 Constitution.
25 (2) Those portions of meetings of the Medicaid
26 Pharmaceutical and Therapeutics Committee at which trade
27 secrets, rebate amount, percent of rebate, manufacturer's
28 pricing, and supplemental rebates are disclosed for discussion
29 or negotiation of a supplemental rebate agreement under
30 section 409.91195, Florida Statutes, are exempt from section
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Florida Senate - 2001 CS for SB 904
317-1764-01
1 286.011, Florida Statutes, and Section 24(b) of Article I of
2 the State Constitution.
3 Section 2. The Legislature finds that it is a public
4 necessity that trade secrets, rebate amount, percent of
5 rebate, manufacturer's pricing, supplemental rebates that are
6 contained in records, as well as meetings of the Medicaid
7 Pharmaceutical and Therapeutics Committee at which this
8 information is negotiated or discussed, pursuant to a
9 supplemental rebate agreement under section 409.91195, Florida
10 Statutes, are confidential and exempt from sections 119.07 and
11 286.011, Florida Statutes, and Section 24(a) and (b) of
12 Article I of the State Constitution. Information pertaining to
13 similar agreements negotiated by pharmaceutical manufacturers
14 and the Federal Government is confidential under 42 U.S.C. s.
15 1396r-8. A supplemental rebate as a percentage of average
16 manufacture price is confidential under federal law and the
17 federal rebate could be made known if not protected in
18 Florida. Because of the protection afforded by federal law, if
19 this information is not protected in Florida, manufacturers
20 would not be willing to offer a rebate in Florida. Further,
21 the Legislature finds that the number and value of
22 supplemental rebates obtained by the agency will increase, to
23 the benefit of Medicaid recipients, if information related to
24 state supplemental rebates is protected in the records
25 received by the agency and if the meetings at which this
26 information is discussed or negotiated are closed because
27 manufacturers will be assured that they will not be placed at
28 a competitive disadvantage by the exposure of this
29 information. As a result, the agency and pharmaceutical
30 manufacturers will have frank and open communication regarding
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Florida Senate - 2001 CS for SB 904
317-1764-01
1 rebates, causing the number of rebates to increase, thereby
2 benefiting Medicaid recipients and the public.
3 Section 3. Section (1) of this act is subject to the
4 Open Government Sunset Review Act of 1995 in accordance with
5 section 119.15, Florida Statutes, and shall stand repealed on
6 October 2, 2006, unless reviewed and saved from repeal through
7 reenactment by the Legislature.
8 Section 4. This act shall take effect on the same date
9 that Committee Substitute for Senate Bill 792, or similar
10 legislation authorizing the Agency for Health Care
11 Administration to negotiate supplemental drug rebates for the
12 Medicaid program, takes effect, if such legislation is adopted
13 in the same legislative session or an extension thereof.
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15 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
16 Senate Bill 904
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18 The Committee Substitute for SB 904 makes information
regarding supplemental rebates from pharmaceutical
19 manufacturers under the Florida Medicaid Program confidential
and exempt from public disclosure. Portions of meetings of the
20 Medicaid Pharmaceutical and Therapeutics Committee at which
this information is disclosed for discussion or negotiation
21 are made exempt from Florida's open meetings requirements. The
bill provides legislative findings that these exemptions are a
22 public necessity in that disclosure of similar information is
prohibited under federal law, and that the exemptions will
23 enable the state to negotiate supplemental pharmaceutical
manufacturer rebates for the ultimate benefit of Medicaid
24 recipients. The exemptions are subject to the Open Government
Sunset Review Act of 1995 and will be repealed on October 2,
25 2006, unless reenacted by the Legislature.
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