SB 1256 - HB 1260 FISCAL NOTE Fiscal Review Committee Tennessee General Assembly February 12, 2025 Fiscal Analyst: Chris Higgins | Email: chris.higgins@capitol.tn.gov | Phone: 615-741-2564 SB 1256 - HB 1260 SUMMARY OF BILL: Requires the Department of Finance and Administration (F&A), in collaboration with the Department of Health (DOH) and the Division of TennCare (Division), to submit a request to the federal Department of Health and Human Services (HHS) by January 1, 2026, for approval to import safe and effective prescription drugs from Canada. Requires F&A to notify the Governor, the Speaker of the Senate, and the Speaker of the House of Representatives upon receiving approval for such request and, within six months of receiving federal approval, to submit a proposal to implement a program for the importation of safe and effective prescription drugs from Canada which have the highest potential for cost savings to this state. FISCAL IMPACT: OTHER FISCAL IMPACT The timing and extent of a waiver approval from the federal Department of Health and Human Services is unknown. The implementation of such waiver is also dependent on the cooperation of the Canadian government. Therefore, the fiscal impact of any future program for the importation of prescription drugs cannot be reasonably quantified. Assumptions: • F&A can submit the necessary request to HHS and submit a proposal for a program for importation of prescription drugs utilizing existing personnel and resources, without an increase in expenditures. • Florida is currently the only state with a federal waiver authorization for a drug importation program; however, that program is not yet operational as of February 2025. • The timing and extent of a waiver approval from HHS is unknown. The implementation of such waiver is also dependent on the cooperation of the Canadian government. Therefore, the impact of any future program for the importation of prescription drugs cannot be reasonably quantified. SB 1256 - HB 1260 2 IMPACT TO COMMERCE: OTHER COMMERCE IMPACT Any impact to commerce from a future waiver to import prescription drugs from Canada is dependent on a number of unknown factors and cannot be reasonably estimated. Assumption: • Any impact to commerce from a future waiver to import prescription drugs from Canada is dependent on a number of unknown factors and cannot be reasonably estimated. CERTIFICATION: The information contained herein is true and correct to the best of my knowledge. Bojan Savic, Executive Director