AB 1460: Prescription drug pricing.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Existing federal law requires the United States Secretary of Health and Human Services to enter into an agreement with each manufacturer of covered outpatient drugs to ensure the amount a covered entity is required to pay for those drugs does not exceed the average manufacturer price of the drug under the federal Medicaid program. Existing state law requires a covered entity to dispense only drugs subject to these federal pricing requirements to Medi-Cal beneficiaries. Existing law prohibits a pharmacy benefit manager from discriminating against a covered entity or its pharmacy in connection with dispensing a drug subject to federal pricing requirements or preventing a covered entity from retaining the benefit of discounted pricing for those drugs.

This bill would prohibit a prescription drug manufacturer from engaging in discriminatory practices that would impose additional conditions, prohibit, restrict, deny, or interfere with a qualifying nonhospital 340B community clinic’s purchase or delivery of a drug subject to federal pricing requirements if the qualifying nonhospital 340B community clinic utilizes a specified pharmacy, including a contract pharmacy, that dispenses the drug to an eligible patient of the qualifying nonhospital 340B community clinic. The bill would define “discriminatory practices” and “qualifying nonhospital 340B community clinic” for these purposes. The bill would require qualifying nonhospital 340B community clinics to annually perform specified activities to ensure compliance with program rules and guidance from the federal Health Resources and Services Administration. The bill would make related intent statements.

Sponsors

Sponsors by party (alphabetical): Democratic 4

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. July 16, 2025In committee: Hearing postponed by committee.
2. July 2, 2025In committee: Set, second hearing. Hearing canceled at the request of author.
3. June 27, 2025From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on HEALTH.
4. June 25, 2025In committee: Set, first hearing. Hearing canceled at the request of author.
5. May 28, 2025Referred to Com. on HEALTH.
6. May 20, 2025In Senate. Read first time. To Com. on RLS. for assignment.
7. May 19, 2025Read third time. Passed. Ordered to the Senate. (Ayes 44. Noes 6. Page 1589.)
8. April 28, 2025Read second time. Ordered to third reading.
9. April 24, 2025Read second time and amended. Ordered returned to second reading.
10. April 23, 2025From committee: Amend, and do pass as amended. (Ayes 9. Noes 4.) (April 22).
11. March 24, 2025Referred to Com. on HEALTH.
12. February 24, 2025Read first time.