California 2017 2017-2018 Regular Session

California Assembly Bill AB2486 Amended / Bill

Filed 03/23/2018

                    Amended IN  Assembly  March 23, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 2486Introduced by Assembly Member McCarty Members McCarty and GallagherFebruary 14, 2018 An act to amend Section 11999.2 of the Health and Safety Code, relating to drug and alcohol programs. add Article 3.3 (commencing with Section 14124.50) to Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions Code, relating to Medi-Cal.LEGISLATIVE COUNSEL'S DIGESTAB 2486, as amended, McCarty. Drug and alcohol programs. Medi-Cal Opioid Prevention and Rehabilitation Act.Existing law establishes the Medi-Cal program, which is administered by the State Department of Health Care Services and under which qualified low-income individuals receive health care services. The Medi-Cal program is, in part, governed and funded by federal Medicaid Program provisions.Existing law provides for a schedule of benefits under the Medi-Cal program, which includes prescribed drugs subject to the Medi-Cal list of contract drugs. Existing law authorizes the department to enter into contracts with manufacturers of single-source and multiple-source drugs for drugs from each major therapeutic category. Existing law requires those contracts to provide for a state rebate to be remitted to the department quarterly. Existing law requires that the utilization data used to determine those rebates include data from all programs, including, but not limited to, fee-for-service Medi-Cal, and utilization data from health plans contracting with the department to provide services to Medi-Cal beneficiaries, as specified.This bill would, on and after January 1, 2020, require a contract entered into by the department and a drug manufacturer under the Medi-Cal program, that includes a prescription drug that contains an active opioid ingredient, to provide for a state rebate, in addition to other existing rebates, which would be proportional to the utilization of prescription drugs containing active opioid ingredients, at a rate of $0.01 per milligram of active opioid ingredient. The bill would require that the determination of drug utilization be based on the utilization data that the department prepares for purposes of the above-described state rebate. The bill would authorize the department to contract with a drug manufacturer without providing for the new state rebate, but would require the drug manufacturers prescription drug that contains an active opioid ingredient to be made available only through prior authorization, to the extent that the prior authorization requirements are consistent with federal Medicaid Program provisions.This bill would require the deposit of the collected state rebate amounts into the Medi-Cal Opioid Prevention and Rehabilitation Program Fund, which the bill would create. The bill would require the department, in consultation with the State Department of Public Health, and subject to appropriation, to annually distribute moneys in the fund to counties for purposes of opioid prevention and rehabilitation programs. The bill would base the distribution of moneys on county needs, using only specified information relating to opioid overdose in the counties.This bill would implement these provisions only to the extent that any necessary federal approvals are obtained.Existing law prohibits the allocation of state funds to any entity, whether public or private, for a drug- or alcohol-related program, unless the drug- or alcohol-related program contains a component that clearly explains in written materials that there shall be no unlawful use of drugs or alcohol.This bill would make technical, nonsubstantive changes to these provisions.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NOYES  Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Article 3.3 (commencing with Section 14124.50) is added to Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions Code, to read: Article 3.3. Medi-Cal Opioid Prevention and Rehabilitation Act14124.50. This article shall be known, and may be cited, as the Medi-Cal Opioid Addiction Prevention and Rehabilitation Act.14124.51. For purposes of this article, the following definitions shall apply:(a) State rebate shall have the same meaning as provided in Section 14105.31.(b) Manufacturer shall have the same meaning as provided in Section 14105.31.(c) Single-source drug shall have the same meaning as provided in Section 14105.31.(d) Multiple-source drug shall have the same meaning as applied to the term in Section 14105.33.(e) Active opioid ingredient means that portion of a product that is an opioid.(f) Opioid means an opiate or any synthetic or semisynthetic narcotic that has opiate-like activities but is not derived from opium and has effects similar to natural opium alkaloids, and any derivatives thereof.(g) Opiate means the dried, condensed juice of a poppy, Papaver somniferum, that has a narcotic, soporific, analgesic, and astringent effect.14124.52. (a) On and after January 1, 2020, except as specified in subdivision (f), a contract entered into by the department and a manufacturer of single-source or multiple-source drugs under the Medi-Cal program pursuant to Section 14105.33, that includes a prescription drug that contains an active opioid ingredient, shall provide for a state rebate as described in subdivision (b), in addition to rebates pursuant to other provisions of state or federal law.(b) The manufacturer described in subdivision (a) shall make a state rebate payment to the department proportional to the utilization of prescription drugs provided by the manufacturer that contain active opioid ingredients, at a rate of one cent ($0.01) per milligram of active opioid ingredient.(c) Determination of prescription drug utilization shall be based on the utilization data that the department prepares for purposes of the state rebate described in Section 14105.33.(d) The department may adopt any regulations necessary or appropriate to carry out the purposes of this article.(e) All state rebate amounts collected pursuant to this section, less refunds and the departments administrative costs, shall be deposited into the Medi-Cal Opioid Prevention and Rehabilitation Program Fund established pursuant to Section 14124.53.(f) Notwithstanding subdivision (a), the department may enter into a contract with a manufacturer without providing for the state rebate described in this section, in which case the manufacturers prescription drug that contains an active opioid ingredient shall be made available only through prior authorization, to the extent that the prior authorization requirements are consistent with federal Medicaid Program provisions.(g) This section shall apply only to new contracts, and renewals of existing contracts, entered into by the department and a manufacturer pursuant to Section 14105.33, on or after January 1, 2020.(h) This article shall be implemented only to the extent that any necessary federal approvals are obtained.14124.53. (a) There is hereby created in the State Treasury the Medi-Cal Opioid Prevention and Rehabilitation Program Fund.(b) (1) The department, in consultation with the State Department of Public Health, shall, subject to appropriation by the Legislature, distribute moneys in the fund to counties, on an annual basis pursuant to paragraph (2), for purposes of opioid prevention and rehabilitation programs.(2) Distribution of moneys in the fund to counties shall be based on county needs, using the most recent data of only the following information, as provided by the State Department of Public Health:(A) The ratio of opioid overdose deaths per county population.(B) The ratio of opioid overdose emergency department visits per county population.(C) The ratio of opioid overdose hospitalizations per county population.SECTION 1.Section 11999.2 of the Health and Safety Code is amended to read:11999.2.(a) Notwithstanding any other law, commencing July 1, 1990, no state funds shall be encumbered by a state agency for allocation to any entity, whether public or private, for a drug- or alcohol-related program, unless the drug- or alcohol-related program contains a component that clearly explains in written materials that there shall be no unlawful use of drugs or alcohol. No aspect of a drug- or alcohol-related program shall include any message on the responsible use, if the use is unlawful, of drugs or alcohol.(b) (1)All aspects of a drug- or alcohol-related program shall be consistent with the no unlawful use message, including, but not limited to, program standards, curricula, materials, and teachings.(2)These materials and programs may include information regarding the health hazards of use of illegal drugs and alcohol, concepts promoting the well-being of the whole person, risk reduction, the addictive personality, development of positive self-esteem, productive decisionmaking skills, and other preventive concepts consistent with the no unlawful use of drugs and alcohol message.(c) The no unlawful use of drugs and alcohol message contained in drug- or alcohol-related programs shall apply to the use of drugs and alcohol prohibited by law.(d) This section does not apply to any program funded by the state that provides education and prevention outreach to intravenous drug users with AIDS or AIDS-related conditions, or persons at risk of HIV-infection through intravenous drug use.

 Amended IN  Assembly  March 23, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 2486Introduced by Assembly Member McCarty Members McCarty and GallagherFebruary 14, 2018 An act to amend Section 11999.2 of the Health and Safety Code, relating to drug and alcohol programs. add Article 3.3 (commencing with Section 14124.50) to Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions Code, relating to Medi-Cal.LEGISLATIVE COUNSEL'S DIGESTAB 2486, as amended, McCarty. Drug and alcohol programs. Medi-Cal Opioid Prevention and Rehabilitation Act.Existing law establishes the Medi-Cal program, which is administered by the State Department of Health Care Services and under which qualified low-income individuals receive health care services. The Medi-Cal program is, in part, governed and funded by federal Medicaid Program provisions.Existing law provides for a schedule of benefits under the Medi-Cal program, which includes prescribed drugs subject to the Medi-Cal list of contract drugs. Existing law authorizes the department to enter into contracts with manufacturers of single-source and multiple-source drugs for drugs from each major therapeutic category. Existing law requires those contracts to provide for a state rebate to be remitted to the department quarterly. Existing law requires that the utilization data used to determine those rebates include data from all programs, including, but not limited to, fee-for-service Medi-Cal, and utilization data from health plans contracting with the department to provide services to Medi-Cal beneficiaries, as specified.This bill would, on and after January 1, 2020, require a contract entered into by the department and a drug manufacturer under the Medi-Cal program, that includes a prescription drug that contains an active opioid ingredient, to provide for a state rebate, in addition to other existing rebates, which would be proportional to the utilization of prescription drugs containing active opioid ingredients, at a rate of $0.01 per milligram of active opioid ingredient. The bill would require that the determination of drug utilization be based on the utilization data that the department prepares for purposes of the above-described state rebate. The bill would authorize the department to contract with a drug manufacturer without providing for the new state rebate, but would require the drug manufacturers prescription drug that contains an active opioid ingredient to be made available only through prior authorization, to the extent that the prior authorization requirements are consistent with federal Medicaid Program provisions.This bill would require the deposit of the collected state rebate amounts into the Medi-Cal Opioid Prevention and Rehabilitation Program Fund, which the bill would create. The bill would require the department, in consultation with the State Department of Public Health, and subject to appropriation, to annually distribute moneys in the fund to counties for purposes of opioid prevention and rehabilitation programs. The bill would base the distribution of moneys on county needs, using only specified information relating to opioid overdose in the counties.This bill would implement these provisions only to the extent that any necessary federal approvals are obtained.Existing law prohibits the allocation of state funds to any entity, whether public or private, for a drug- or alcohol-related program, unless the drug- or alcohol-related program contains a component that clearly explains in written materials that there shall be no unlawful use of drugs or alcohol.This bill would make technical, nonsubstantive changes to these provisions.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NOYES  Local Program: NO 

 Amended IN  Assembly  March 23, 2018

Amended IN  Assembly  March 23, 2018

 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION

Assembly Bill No. 2486

Introduced by Assembly Member McCarty Members McCarty and GallagherFebruary 14, 2018

Introduced by Assembly Member McCarty Members McCarty and Gallagher
February 14, 2018

 An act to amend Section 11999.2 of the Health and Safety Code, relating to drug and alcohol programs. add Article 3.3 (commencing with Section 14124.50) to Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions Code, relating to Medi-Cal.

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 2486, as amended, McCarty. Drug and alcohol programs. Medi-Cal Opioid Prevention and Rehabilitation Act.

Existing law establishes the Medi-Cal program, which is administered by the State Department of Health Care Services and under which qualified low-income individuals receive health care services. The Medi-Cal program is, in part, governed and funded by federal Medicaid Program provisions.Existing law provides for a schedule of benefits under the Medi-Cal program, which includes prescribed drugs subject to the Medi-Cal list of contract drugs. Existing law authorizes the department to enter into contracts with manufacturers of single-source and multiple-source drugs for drugs from each major therapeutic category. Existing law requires those contracts to provide for a state rebate to be remitted to the department quarterly. Existing law requires that the utilization data used to determine those rebates include data from all programs, including, but not limited to, fee-for-service Medi-Cal, and utilization data from health plans contracting with the department to provide services to Medi-Cal beneficiaries, as specified.This bill would, on and after January 1, 2020, require a contract entered into by the department and a drug manufacturer under the Medi-Cal program, that includes a prescription drug that contains an active opioid ingredient, to provide for a state rebate, in addition to other existing rebates, which would be proportional to the utilization of prescription drugs containing active opioid ingredients, at a rate of $0.01 per milligram of active opioid ingredient. The bill would require that the determination of drug utilization be based on the utilization data that the department prepares for purposes of the above-described state rebate. The bill would authorize the department to contract with a drug manufacturer without providing for the new state rebate, but would require the drug manufacturers prescription drug that contains an active opioid ingredient to be made available only through prior authorization, to the extent that the prior authorization requirements are consistent with federal Medicaid Program provisions.This bill would require the deposit of the collected state rebate amounts into the Medi-Cal Opioid Prevention and Rehabilitation Program Fund, which the bill would create. The bill would require the department, in consultation with the State Department of Public Health, and subject to appropriation, to annually distribute moneys in the fund to counties for purposes of opioid prevention and rehabilitation programs. The bill would base the distribution of moneys on county needs, using only specified information relating to opioid overdose in the counties.This bill would implement these provisions only to the extent that any necessary federal approvals are obtained.Existing law prohibits the allocation of state funds to any entity, whether public or private, for a drug- or alcohol-related program, unless the drug- or alcohol-related program contains a component that clearly explains in written materials that there shall be no unlawful use of drugs or alcohol.This bill would make technical, nonsubstantive changes to these provisions.

Existing law establishes the Medi-Cal program, which is administered by the State Department of Health Care Services and under which qualified low-income individuals receive health care services. The Medi-Cal program is, in part, governed and funded by federal Medicaid Program provisions.

Existing law provides for a schedule of benefits under the Medi-Cal program, which includes prescribed drugs subject to the Medi-Cal list of contract drugs. Existing law authorizes the department to enter into contracts with manufacturers of single-source and multiple-source drugs for drugs from each major therapeutic category. Existing law requires those contracts to provide for a state rebate to be remitted to the department quarterly. Existing law requires that the utilization data used to determine those rebates include data from all programs, including, but not limited to, fee-for-service Medi-Cal, and utilization data from health plans contracting with the department to provide services to Medi-Cal beneficiaries, as specified.

This bill would, on and after January 1, 2020, require a contract entered into by the department and a drug manufacturer under the Medi-Cal program, that includes a prescription drug that contains an active opioid ingredient, to provide for a state rebate, in addition to other existing rebates, which would be proportional to the utilization of prescription drugs containing active opioid ingredients, at a rate of $0.01 per milligram of active opioid ingredient. The bill would require that the determination of drug utilization be based on the utilization data that the department prepares for purposes of the above-described state rebate. The bill would authorize the department to contract with a drug manufacturer without providing for the new state rebate, but would require the drug manufacturers prescription drug that contains an active opioid ingredient to be made available only through prior authorization, to the extent that the prior authorization requirements are consistent with federal Medicaid Program provisions.

This bill would require the deposit of the collected state rebate amounts into the Medi-Cal Opioid Prevention and Rehabilitation Program Fund, which the bill would create. The bill would require the department, in consultation with the State Department of Public Health, and subject to appropriation, to annually distribute moneys in the fund to counties for purposes of opioid prevention and rehabilitation programs. The bill would base the distribution of moneys on county needs, using only specified information relating to opioid overdose in the counties.

This bill would implement these provisions only to the extent that any necessary federal approvals are obtained.

Existing law prohibits the allocation of state funds to any entity, whether public or private, for a drug- or alcohol-related program, unless the drug- or alcohol-related program contains a component that clearly explains in written materials that there shall be no unlawful use of drugs or alcohol.



This bill would make technical, nonsubstantive changes to these provisions.



## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Article 3.3 (commencing with Section 14124.50) is added to Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions Code, to read: Article 3.3. Medi-Cal Opioid Prevention and Rehabilitation Act14124.50. This article shall be known, and may be cited, as the Medi-Cal Opioid Addiction Prevention and Rehabilitation Act.14124.51. For purposes of this article, the following definitions shall apply:(a) State rebate shall have the same meaning as provided in Section 14105.31.(b) Manufacturer shall have the same meaning as provided in Section 14105.31.(c) Single-source drug shall have the same meaning as provided in Section 14105.31.(d) Multiple-source drug shall have the same meaning as applied to the term in Section 14105.33.(e) Active opioid ingredient means that portion of a product that is an opioid.(f) Opioid means an opiate or any synthetic or semisynthetic narcotic that has opiate-like activities but is not derived from opium and has effects similar to natural opium alkaloids, and any derivatives thereof.(g) Opiate means the dried, condensed juice of a poppy, Papaver somniferum, that has a narcotic, soporific, analgesic, and astringent effect.14124.52. (a) On and after January 1, 2020, except as specified in subdivision (f), a contract entered into by the department and a manufacturer of single-source or multiple-source drugs under the Medi-Cal program pursuant to Section 14105.33, that includes a prescription drug that contains an active opioid ingredient, shall provide for a state rebate as described in subdivision (b), in addition to rebates pursuant to other provisions of state or federal law.(b) The manufacturer described in subdivision (a) shall make a state rebate payment to the department proportional to the utilization of prescription drugs provided by the manufacturer that contain active opioid ingredients, at a rate of one cent ($0.01) per milligram of active opioid ingredient.(c) Determination of prescription drug utilization shall be based on the utilization data that the department prepares for purposes of the state rebate described in Section 14105.33.(d) The department may adopt any regulations necessary or appropriate to carry out the purposes of this article.(e) All state rebate amounts collected pursuant to this section, less refunds and the departments administrative costs, shall be deposited into the Medi-Cal Opioid Prevention and Rehabilitation Program Fund established pursuant to Section 14124.53.(f) Notwithstanding subdivision (a), the department may enter into a contract with a manufacturer without providing for the state rebate described in this section, in which case the manufacturers prescription drug that contains an active opioid ingredient shall be made available only through prior authorization, to the extent that the prior authorization requirements are consistent with federal Medicaid Program provisions.(g) This section shall apply only to new contracts, and renewals of existing contracts, entered into by the department and a manufacturer pursuant to Section 14105.33, on or after January 1, 2020.(h) This article shall be implemented only to the extent that any necessary federal approvals are obtained.14124.53. (a) There is hereby created in the State Treasury the Medi-Cal Opioid Prevention and Rehabilitation Program Fund.(b) (1) The department, in consultation with the State Department of Public Health, shall, subject to appropriation by the Legislature, distribute moneys in the fund to counties, on an annual basis pursuant to paragraph (2), for purposes of opioid prevention and rehabilitation programs.(2) Distribution of moneys in the fund to counties shall be based on county needs, using the most recent data of only the following information, as provided by the State Department of Public Health:(A) The ratio of opioid overdose deaths per county population.(B) The ratio of opioid overdose emergency department visits per county population.(C) The ratio of opioid overdose hospitalizations per county population.SECTION 1.Section 11999.2 of the Health and Safety Code is amended to read:11999.2.(a) Notwithstanding any other law, commencing July 1, 1990, no state funds shall be encumbered by a state agency for allocation to any entity, whether public or private, for a drug- or alcohol-related program, unless the drug- or alcohol-related program contains a component that clearly explains in written materials that there shall be no unlawful use of drugs or alcohol. No aspect of a drug- or alcohol-related program shall include any message on the responsible use, if the use is unlawful, of drugs or alcohol.(b) (1)All aspects of a drug- or alcohol-related program shall be consistent with the no unlawful use message, including, but not limited to, program standards, curricula, materials, and teachings.(2)These materials and programs may include information regarding the health hazards of use of illegal drugs and alcohol, concepts promoting the well-being of the whole person, risk reduction, the addictive personality, development of positive self-esteem, productive decisionmaking skills, and other preventive concepts consistent with the no unlawful use of drugs and alcohol message.(c) The no unlawful use of drugs and alcohol message contained in drug- or alcohol-related programs shall apply to the use of drugs and alcohol prohibited by law.(d) This section does not apply to any program funded by the state that provides education and prevention outreach to intravenous drug users with AIDS or AIDS-related conditions, or persons at risk of HIV-infection through intravenous drug use.

The people of the State of California do enact as follows:

## The people of the State of California do enact as follows:

SECTION 1. Article 3.3 (commencing with Section 14124.50) is added to Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions Code, to read: Article 3.3. Medi-Cal Opioid Prevention and Rehabilitation Act14124.50. This article shall be known, and may be cited, as the Medi-Cal Opioid Addiction Prevention and Rehabilitation Act.14124.51. For purposes of this article, the following definitions shall apply:(a) State rebate shall have the same meaning as provided in Section 14105.31.(b) Manufacturer shall have the same meaning as provided in Section 14105.31.(c) Single-source drug shall have the same meaning as provided in Section 14105.31.(d) Multiple-source drug shall have the same meaning as applied to the term in Section 14105.33.(e) Active opioid ingredient means that portion of a product that is an opioid.(f) Opioid means an opiate or any synthetic or semisynthetic narcotic that has opiate-like activities but is not derived from opium and has effects similar to natural opium alkaloids, and any derivatives thereof.(g) Opiate means the dried, condensed juice of a poppy, Papaver somniferum, that has a narcotic, soporific, analgesic, and astringent effect.14124.52. (a) On and after January 1, 2020, except as specified in subdivision (f), a contract entered into by the department and a manufacturer of single-source or multiple-source drugs under the Medi-Cal program pursuant to Section 14105.33, that includes a prescription drug that contains an active opioid ingredient, shall provide for a state rebate as described in subdivision (b), in addition to rebates pursuant to other provisions of state or federal law.(b) The manufacturer described in subdivision (a) shall make a state rebate payment to the department proportional to the utilization of prescription drugs provided by the manufacturer that contain active opioid ingredients, at a rate of one cent ($0.01) per milligram of active opioid ingredient.(c) Determination of prescription drug utilization shall be based on the utilization data that the department prepares for purposes of the state rebate described in Section 14105.33.(d) The department may adopt any regulations necessary or appropriate to carry out the purposes of this article.(e) All state rebate amounts collected pursuant to this section, less refunds and the departments administrative costs, shall be deposited into the Medi-Cal Opioid Prevention and Rehabilitation Program Fund established pursuant to Section 14124.53.(f) Notwithstanding subdivision (a), the department may enter into a contract with a manufacturer without providing for the state rebate described in this section, in which case the manufacturers prescription drug that contains an active opioid ingredient shall be made available only through prior authorization, to the extent that the prior authorization requirements are consistent with federal Medicaid Program provisions.(g) This section shall apply only to new contracts, and renewals of existing contracts, entered into by the department and a manufacturer pursuant to Section 14105.33, on or after January 1, 2020.(h) This article shall be implemented only to the extent that any necessary federal approvals are obtained.14124.53. (a) There is hereby created in the State Treasury the Medi-Cal Opioid Prevention and Rehabilitation Program Fund.(b) (1) The department, in consultation with the State Department of Public Health, shall, subject to appropriation by the Legislature, distribute moneys in the fund to counties, on an annual basis pursuant to paragraph (2), for purposes of opioid prevention and rehabilitation programs.(2) Distribution of moneys in the fund to counties shall be based on county needs, using the most recent data of only the following information, as provided by the State Department of Public Health:(A) The ratio of opioid overdose deaths per county population.(B) The ratio of opioid overdose emergency department visits per county population.(C) The ratio of opioid overdose hospitalizations per county population.

SECTION 1. Article 3.3 (commencing with Section 14124.50) is added to Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions Code, to read:

### SECTION 1.

 Article 3.3. Medi-Cal Opioid Prevention and Rehabilitation Act14124.50. This article shall be known, and may be cited, as the Medi-Cal Opioid Addiction Prevention and Rehabilitation Act.14124.51. For purposes of this article, the following definitions shall apply:(a) State rebate shall have the same meaning as provided in Section 14105.31.(b) Manufacturer shall have the same meaning as provided in Section 14105.31.(c) Single-source drug shall have the same meaning as provided in Section 14105.31.(d) Multiple-source drug shall have the same meaning as applied to the term in Section 14105.33.(e) Active opioid ingredient means that portion of a product that is an opioid.(f) Opioid means an opiate or any synthetic or semisynthetic narcotic that has opiate-like activities but is not derived from opium and has effects similar to natural opium alkaloids, and any derivatives thereof.(g) Opiate means the dried, condensed juice of a poppy, Papaver somniferum, that has a narcotic, soporific, analgesic, and astringent effect.14124.52. (a) On and after January 1, 2020, except as specified in subdivision (f), a contract entered into by the department and a manufacturer of single-source or multiple-source drugs under the Medi-Cal program pursuant to Section 14105.33, that includes a prescription drug that contains an active opioid ingredient, shall provide for a state rebate as described in subdivision (b), in addition to rebates pursuant to other provisions of state or federal law.(b) The manufacturer described in subdivision (a) shall make a state rebate payment to the department proportional to the utilization of prescription drugs provided by the manufacturer that contain active opioid ingredients, at a rate of one cent ($0.01) per milligram of active opioid ingredient.(c) Determination of prescription drug utilization shall be based on the utilization data that the department prepares for purposes of the state rebate described in Section 14105.33.(d) The department may adopt any regulations necessary or appropriate to carry out the purposes of this article.(e) All state rebate amounts collected pursuant to this section, less refunds and the departments administrative costs, shall be deposited into the Medi-Cal Opioid Prevention and Rehabilitation Program Fund established pursuant to Section 14124.53.(f) Notwithstanding subdivision (a), the department may enter into a contract with a manufacturer without providing for the state rebate described in this section, in which case the manufacturers prescription drug that contains an active opioid ingredient shall be made available only through prior authorization, to the extent that the prior authorization requirements are consistent with federal Medicaid Program provisions.(g) This section shall apply only to new contracts, and renewals of existing contracts, entered into by the department and a manufacturer pursuant to Section 14105.33, on or after January 1, 2020.(h) This article shall be implemented only to the extent that any necessary federal approvals are obtained.14124.53. (a) There is hereby created in the State Treasury the Medi-Cal Opioid Prevention and Rehabilitation Program Fund.(b) (1) The department, in consultation with the State Department of Public Health, shall, subject to appropriation by the Legislature, distribute moneys in the fund to counties, on an annual basis pursuant to paragraph (2), for purposes of opioid prevention and rehabilitation programs.(2) Distribution of moneys in the fund to counties shall be based on county needs, using the most recent data of only the following information, as provided by the State Department of Public Health:(A) The ratio of opioid overdose deaths per county population.(B) The ratio of opioid overdose emergency department visits per county population.(C) The ratio of opioid overdose hospitalizations per county population.

 Article 3.3. Medi-Cal Opioid Prevention and Rehabilitation Act14124.50. This article shall be known, and may be cited, as the Medi-Cal Opioid Addiction Prevention and Rehabilitation Act.14124.51. For purposes of this article, the following definitions shall apply:(a) State rebate shall have the same meaning as provided in Section 14105.31.(b) Manufacturer shall have the same meaning as provided in Section 14105.31.(c) Single-source drug shall have the same meaning as provided in Section 14105.31.(d) Multiple-source drug shall have the same meaning as applied to the term in Section 14105.33.(e) Active opioid ingredient means that portion of a product that is an opioid.(f) Opioid means an opiate or any synthetic or semisynthetic narcotic that has opiate-like activities but is not derived from opium and has effects similar to natural opium alkaloids, and any derivatives thereof.(g) Opiate means the dried, condensed juice of a poppy, Papaver somniferum, that has a narcotic, soporific, analgesic, and astringent effect.14124.52. (a) On and after January 1, 2020, except as specified in subdivision (f), a contract entered into by the department and a manufacturer of single-source or multiple-source drugs under the Medi-Cal program pursuant to Section 14105.33, that includes a prescription drug that contains an active opioid ingredient, shall provide for a state rebate as described in subdivision (b), in addition to rebates pursuant to other provisions of state or federal law.(b) The manufacturer described in subdivision (a) shall make a state rebate payment to the department proportional to the utilization of prescription drugs provided by the manufacturer that contain active opioid ingredients, at a rate of one cent ($0.01) per milligram of active opioid ingredient.(c) Determination of prescription drug utilization shall be based on the utilization data that the department prepares for purposes of the state rebate described in Section 14105.33.(d) The department may adopt any regulations necessary or appropriate to carry out the purposes of this article.(e) All state rebate amounts collected pursuant to this section, less refunds and the departments administrative costs, shall be deposited into the Medi-Cal Opioid Prevention and Rehabilitation Program Fund established pursuant to Section 14124.53.(f) Notwithstanding subdivision (a), the department may enter into a contract with a manufacturer without providing for the state rebate described in this section, in which case the manufacturers prescription drug that contains an active opioid ingredient shall be made available only through prior authorization, to the extent that the prior authorization requirements are consistent with federal Medicaid Program provisions.(g) This section shall apply only to new contracts, and renewals of existing contracts, entered into by the department and a manufacturer pursuant to Section 14105.33, on or after January 1, 2020.(h) This article shall be implemented only to the extent that any necessary federal approvals are obtained.14124.53. (a) There is hereby created in the State Treasury the Medi-Cal Opioid Prevention and Rehabilitation Program Fund.(b) (1) The department, in consultation with the State Department of Public Health, shall, subject to appropriation by the Legislature, distribute moneys in the fund to counties, on an annual basis pursuant to paragraph (2), for purposes of opioid prevention and rehabilitation programs.(2) Distribution of moneys in the fund to counties shall be based on county needs, using the most recent data of only the following information, as provided by the State Department of Public Health:(A) The ratio of opioid overdose deaths per county population.(B) The ratio of opioid overdose emergency department visits per county population.(C) The ratio of opioid overdose hospitalizations per county population.

 Article 3.3. Medi-Cal Opioid Prevention and Rehabilitation Act

 Article 3.3. Medi-Cal Opioid Prevention and Rehabilitation Act

14124.50. This article shall be known, and may be cited, as the Medi-Cal Opioid Addiction Prevention and Rehabilitation Act.



14124.50. This article shall be known, and may be cited, as the Medi-Cal Opioid Addiction Prevention and Rehabilitation Act.

14124.51. For purposes of this article, the following definitions shall apply:(a) State rebate shall have the same meaning as provided in Section 14105.31.(b) Manufacturer shall have the same meaning as provided in Section 14105.31.(c) Single-source drug shall have the same meaning as provided in Section 14105.31.(d) Multiple-source drug shall have the same meaning as applied to the term in Section 14105.33.(e) Active opioid ingredient means that portion of a product that is an opioid.(f) Opioid means an opiate or any synthetic or semisynthetic narcotic that has opiate-like activities but is not derived from opium and has effects similar to natural opium alkaloids, and any derivatives thereof.(g) Opiate means the dried, condensed juice of a poppy, Papaver somniferum, that has a narcotic, soporific, analgesic, and astringent effect.



14124.51. For purposes of this article, the following definitions shall apply:

(a) State rebate shall have the same meaning as provided in Section 14105.31.

(b) Manufacturer shall have the same meaning as provided in Section 14105.31.

(c) Single-source drug shall have the same meaning as provided in Section 14105.31.

(d) Multiple-source drug shall have the same meaning as applied to the term in Section 14105.33.

(e) Active opioid ingredient means that portion of a product that is an opioid.

(f) Opioid means an opiate or any synthetic or semisynthetic narcotic that has opiate-like activities but is not derived from opium and has effects similar to natural opium alkaloids, and any derivatives thereof.

(g) Opiate means the dried, condensed juice of a poppy, Papaver somniferum, that has a narcotic, soporific, analgesic, and astringent effect.

14124.52. (a) On and after January 1, 2020, except as specified in subdivision (f), a contract entered into by the department and a manufacturer of single-source or multiple-source drugs under the Medi-Cal program pursuant to Section 14105.33, that includes a prescription drug that contains an active opioid ingredient, shall provide for a state rebate as described in subdivision (b), in addition to rebates pursuant to other provisions of state or federal law.(b) The manufacturer described in subdivision (a) shall make a state rebate payment to the department proportional to the utilization of prescription drugs provided by the manufacturer that contain active opioid ingredients, at a rate of one cent ($0.01) per milligram of active opioid ingredient.(c) Determination of prescription drug utilization shall be based on the utilization data that the department prepares for purposes of the state rebate described in Section 14105.33.(d) The department may adopt any regulations necessary or appropriate to carry out the purposes of this article.(e) All state rebate amounts collected pursuant to this section, less refunds and the departments administrative costs, shall be deposited into the Medi-Cal Opioid Prevention and Rehabilitation Program Fund established pursuant to Section 14124.53.(f) Notwithstanding subdivision (a), the department may enter into a contract with a manufacturer without providing for the state rebate described in this section, in which case the manufacturers prescription drug that contains an active opioid ingredient shall be made available only through prior authorization, to the extent that the prior authorization requirements are consistent with federal Medicaid Program provisions.(g) This section shall apply only to new contracts, and renewals of existing contracts, entered into by the department and a manufacturer pursuant to Section 14105.33, on or after January 1, 2020.(h) This article shall be implemented only to the extent that any necessary federal approvals are obtained.



14124.52. (a) On and after January 1, 2020, except as specified in subdivision (f), a contract entered into by the department and a manufacturer of single-source or multiple-source drugs under the Medi-Cal program pursuant to Section 14105.33, that includes a prescription drug that contains an active opioid ingredient, shall provide for a state rebate as described in subdivision (b), in addition to rebates pursuant to other provisions of state or federal law.

(b) The manufacturer described in subdivision (a) shall make a state rebate payment to the department proportional to the utilization of prescription drugs provided by the manufacturer that contain active opioid ingredients, at a rate of one cent ($0.01) per milligram of active opioid ingredient.

(c) Determination of prescription drug utilization shall be based on the utilization data that the department prepares for purposes of the state rebate described in Section 14105.33.

(d) The department may adopt any regulations necessary or appropriate to carry out the purposes of this article.

(e) All state rebate amounts collected pursuant to this section, less refunds and the departments administrative costs, shall be deposited into the Medi-Cal Opioid Prevention and Rehabilitation Program Fund established pursuant to Section 14124.53.

(f) Notwithstanding subdivision (a), the department may enter into a contract with a manufacturer without providing for the state rebate described in this section, in which case the manufacturers prescription drug that contains an active opioid ingredient shall be made available only through prior authorization, to the extent that the prior authorization requirements are consistent with federal Medicaid Program provisions.

(g) This section shall apply only to new contracts, and renewals of existing contracts, entered into by the department and a manufacturer pursuant to Section 14105.33, on or after January 1, 2020.

(h) This article shall be implemented only to the extent that any necessary federal approvals are obtained.

14124.53. (a) There is hereby created in the State Treasury the Medi-Cal Opioid Prevention and Rehabilitation Program Fund.(b) (1) The department, in consultation with the State Department of Public Health, shall, subject to appropriation by the Legislature, distribute moneys in the fund to counties, on an annual basis pursuant to paragraph (2), for purposes of opioid prevention and rehabilitation programs.(2) Distribution of moneys in the fund to counties shall be based on county needs, using the most recent data of only the following information, as provided by the State Department of Public Health:(A) The ratio of opioid overdose deaths per county population.(B) The ratio of opioid overdose emergency department visits per county population.(C) The ratio of opioid overdose hospitalizations per county population.



14124.53. (a) There is hereby created in the State Treasury the Medi-Cal Opioid Prevention and Rehabilitation Program Fund.

(b) (1) The department, in consultation with the State Department of Public Health, shall, subject to appropriation by the Legislature, distribute moneys in the fund to counties, on an annual basis pursuant to paragraph (2), for purposes of opioid prevention and rehabilitation programs.

(2) Distribution of moneys in the fund to counties shall be based on county needs, using the most recent data of only the following information, as provided by the State Department of Public Health:

(A) The ratio of opioid overdose deaths per county population.

(B) The ratio of opioid overdose emergency department visits per county population.

(C) The ratio of opioid overdose hospitalizations per county population.





(a) Notwithstanding any other law, commencing July 1, 1990, no state funds shall be encumbered by a state agency for allocation to any entity, whether public or private, for a drug- or alcohol-related program, unless the drug- or alcohol-related program contains a component that clearly explains in written materials that there shall be no unlawful use of drugs or alcohol. No aspect of a drug- or alcohol-related program shall include any message on the responsible use, if the use is unlawful, of drugs or alcohol.



(b) (1)All aspects of a drug- or alcohol-related program shall be consistent with the no unlawful use message, including, but not limited to, program standards, curricula, materials, and teachings.



(2)These materials and programs may include information regarding the health hazards of use of illegal drugs and alcohol, concepts promoting the well-being of the whole person, risk reduction, the addictive personality, development of positive self-esteem, productive decisionmaking skills, and other preventive concepts consistent with the no unlawful use of drugs and alcohol message.



(c) The no unlawful use of drugs and alcohol message contained in drug- or alcohol-related programs shall apply to the use of drugs and alcohol prohibited by law.



(d) This section does not apply to any program funded by the state that provides education and prevention outreach to intravenous drug users with AIDS or AIDS-related conditions, or persons at risk of HIV-infection through intravenous drug use.