Drugs, Prescription

Plain English Breakdown

Checked against official source text during the last sync.

Tennessee Prescription Drug Importation Act

This bill requires Tennessee to apply for federal approval by January 1, 2026, to import prescription drugs from Canada and sets guidelines for safety standards and cost estimates.

What This Bill Does

• Requires the Department of Finance and Administration, in collaboration with the Department of Health and TennCare, to submit a request to the U.S. Secretary of Health and Human Services by January 1, 2026, for approval to import prescription drugs from Canada.
• The request must demonstrate how imported drugs will meet safety and effectiveness standards set by both federal and state laws.
• Includes an estimate of cost savings and costs associated with importing these drugs.
• Requires the department to notify key government officials if they receive federal approval.
• Within six months of receiving federal approval, the department must submit a proposal for implementing the drug importation program.

Who It Names or Affects

• The Department of Finance and Administration
• The Department of Health
• TennCare
• Tennessee residents who may benefit from lower prescription drug costs

Terms To Know

Drug Supply Chain Security Act

A federal law that sets standards for pharmaceutical distribution to ensure safety.

Fiscal Impact

The financial effect of a program or policy on the state budget.

Limits and Unknowns

• The exact timing and extent of approval from federal authorities is uncertain.
• Implementation depends on cooperation with the Canadian government, which introduces uncertainty.
• The actual fiscal impact cannot be accurately predicted due to these uncertainties.

Official Summary Text

By
January 1, 2026,
this bill requires
the department of finance and administration, in collaboration with the department of health and the division of TennCare,
to
submit a request to the United States secretary of health and human servic
es for approval of the ability to import safe and effective prescription drugs from Canada pursuant to
federal law
. The request must, at a minimum
, meet the following requirements
:



Demonstrate how the prescription drugs imported into this state will meet the applicable federal and state standards for safety and effectiveness
.



Demonstrate how the drugs imported into this state will comply with federal law for the pharmaceutical distribution supply chain as described in the
federal
Drug Supply Chain Security Act
.



Include a list of proposed prescription drugs that have the highest potential for cost savings to this state through importation at the time that the request is submitted
.



Estimate this state's total annual cost savings from importation of prescription drugs from Canada
.



Estimate this state's total annual cost of importation of prescription drugs from Canada
.



Include a list of potential Canadian suppliers from which this state would import drugs and demonstrate that the suppliers are in full compliance with relevant Canadian federal and provincial laws and regulations
,
as well as all applicable federal and state laws and regulations
.

Upon receipt of federal approval,
this bill requires
the department of finance and administration
to
notify the
governor, the speaker of the senate, and the speaker of the house of representatives of such federal approval.

Within six months of receiving federal approval, the department

of finance and administration, in collaboration with the department of health an
d the division of TennCare,
must
submit a proposal to the governor, the speaker of the senate, and the speaker of the house of representatives to implement a program for the importation of safe and effective prescription drugs from Canada that have the hig
hest potential for cost savings to this state.

RULEMAKING

This bill authorizes the
department of finance and administration, in collaboration with the department of health and the division of TennCare, to promulgate rules to effectuate this
bill.

Current Bill Text

SENATE BILL 1256
By Lamar

HOUSE BILL 1260
By McKenzie

HB1260
000074
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 8;
Title 33; Title 53; Title 56; Title 63; Title 68 and
Title 71, relative to prescription drugs.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 53, Chapter 10, Part 2, is amended by
adding the following as a new section:
(a) On or before January 1, 2026, the department of finance and administration,
in collaboration with the department of health and the division of TennCare, shall submit
a request to the United States secretary of health and human services for approval of
the ability to import safe and effective prescription drugs from Canada pursuant to 21
U.S.C. § 384. The request must, at a minimum:
(1) Demonstrate how the prescription drugs imported into this state will
meet the applicable federal and state standards for safety and effectiveness;
(2) Demonstrate how the drugs imported into this state will comply with
federal law for the pharmaceutical distribution supply chain as described in the
Drug Supply Chain Security Act (Title II of Pub. L. No. 113-54);
(3) Include a list of proposed prescription drugs that have the highest
potential for cost savings to this state through importation at the time that the
request is submitted;
(4) Estimate this state's total annual cost savings from importation of
prescription drugs from Canada;
(5) Estimate this state's total annual cost of importation of prescription
drugs from Canada; and

- 2 - 000074

(6) Include a list of potential Canadian suppliers from which this state
would import drugs and demonstrate that the suppliers are in full compliance with
relevant Canadian federal and provincial laws and regulations as well as all
applicable federal and state laws and regulations.
(b) Upon receipt of federal approval, the department of finance and
administration shall notify the governor, the speaker of the senate, and the speaker of
the house of representatives of such federal approval.
(c) Within six (6) months of receiving federal approval, the department of finance
and administration, in collaboration with the department of health and the division of
TennCare, shall submit a proposal to the governor, the speaker of the senate, and the
speaker of the house of representatives to implement a program for the importation of
safe and effective prescription drugs from Canada that have the highest potential for
cost savings to this state.
(d) The department of finance and administration, in collaboration with the
department of health and the division of TennCare, is authorized to promulgate rules to
effectuate this section. The rules must be promulgated in accordance with the Uniform
Administrative Procedures Act, compiled in title 4, chapter 5.
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.