Prescription Drugs. Initiative Statute.

Creates prescription drug discount program available to all Californians, regardless of income or insurance status. Authorizes Board of Administration of Public Employees Retirement System to negotiate contracts for price discounts on prescription drugs. Allows enrollees to purchase discounted prescription drugs from participating pharmacies. Requires continuous open enrollment and outreach. Imposes annual licensing fees on drug manufacturers and their marketing representatives. Imposes civil penalties against drug manufacturers for profiteering, as defined. Requires that fees and fines be applied to costs of program up to specified amount. Compels licensees to disclose health risks of prescription drugs to physicians. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Ongoing state costs, probably less than $10 million annually, for administration and outreach activities by PERS and the Board of Pharmacy for new pharmacy assistance and licensing programs established by this initiative. These ongoing costs would probably be offset by licensing revenues and fines. Unknown savings on state and county health program costs due to the availability of drug discounts and unknown costs and offsetting revenues from the anti-profiteering provisions