PRIOR PRINTER'S NOS. 1686, 1810 PRINTER'S NO. 2277
No. 1470 Session of 1991
INTRODUCED BY TIGUE, STUBAN, EVANS, DeWEESE, KUKOVICH, STABACK,
STETLER, TANGRETTI, JAROLIN, SCRIMENTI, PETRONE, STISH,
BATTISTO, COLE, WILLIAMS, RITTER, VAN HORNE, STEIGHNER,
GEIST, D. R. WRIGHT, JAMES, HANNA AND TRICH, MAY 15, 1991
AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
REPRESENTATIVES, AS AMENDED, JULY 10, 1991
AN ACT
1 Providing for the preservation of the State Lottery Fund;
2 further providing for pharmaceutical assistance for the
3 elderly; further providing for transportation assistance to
4 the elderly; providing for pharmaceutical purchasing;
5 conferring powers and duties upon the Department of Aging,
6 the Department of Revenue, and the Department of
7 Transportation; imposing penalties; and making repeals.
8 TABLE OF CONTENTS
9 Chapter 1. Preliminary Provisions
10 Section 101. Short title.
11 Section 102. Declaration of policy.
12 Section 103. Definitions.
13 Chapter 3. Pharmaceutical Assistance for Elderly
14 Section 301. Legislative findings.
15 Section 302. Definitions.
16 Section 303. Responsibilities of department.
17 Section 304. Contract.
18 Section 305. Board.
19 Section 306. Penalties.
1 Section 307. Prescription drug education program.
2 Chapter 5. Prudent Pharmaceutical Purchasing
3 Section 501. Declaration of policy.
4 Section 502. Definitions.
5 Section 503. Rebate agreement.
6 Section 504. Terms of rebate agreement.
7 Section 505. Amount of rebate.
8 Section 506. Exemption.
9 Section 507. Disposition of funds.
10 Section 508. Existing agreements.
11 Chapter 7. Shared Rides TRANSPORTATION SERVICES <--
12 Section 701. Definitions.
13 Section 702. Department of Transportation.
14 Section 703. Human service shared ride transportation services
15 for older adults.
16 Chapter 9. Miscellaneous Provisions
17 Section 901. Savings.
18 Section 902. Severability.
19 Section 903. Repeals.
20 Section 904. Applicability.
21 Section 905. Effective date.
22 The General Assembly of the Commonwealth of Pennsylvania
23 hereby enacts as follows:
24 CHAPTER 1
25 PRELIMINARY PROVISIONS
26 Section 101. Short title.
27 This act shall be known and may be cited as the Lottery Fund
28 Preservation Act.
29 Section 102. Declaration of policy.
30 The General Assembly finds and declares as follows:
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1 (1) The State Lottery Fund is the major source of
2 providing assistance and programs to the elderly in this
3 Commonwealth.
4 (2) The State Lottery Fund's revenues are leveling off
5 while the population served by the fund has increased by over
6 500,000 older adults since the fund was created.
7 (3) The State Lottery Fund is experiencing serious
8 financial strain because of increased demand and escalating
9 prices of products and services. Prescription prices have
10 risen an average of 15% annually while transportation costs
11 have increased an average of 10% annually.
12 (4) The following specific programs lack appropriate
13 spending limits and are the major cause of strain on the
14 State Lottery Fund:
15 (i) Pharmaceutical assistance for the elderly.
16 (ii) Shared transportation services for the elderly.
17 (iii) Fixed route transit subsidies for the elderly.
18 (5) The best solution to the problem of ensuring the
19 financial solvency of the State Lottery Fund is the
20 consolidation and regulation of the programs listed in
21 paragraph (4).
22 Section 103. Definitions.
23 The following words and phrases when used in this act shall
24 have the meanings given to them in this section unless the
25 context clearly indicates otherwise:
26 "Department." The Department of Aging of the Commonwealth.
27 "Fund." The State Lottery Fund.
28 CHAPTER 3
29 PHARMACEUTICAL ASSISTANCE FOR ELDERLY
30 Section 301. Legislative findings.
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1 Finding that an increasing number of the Commonwealth's
2 elderly citizens who are living on fixed incomes are
3 experiencing difficulties in meeting the costs of life-
4 sustaining prescription drugs, the General Assembly, in its
5 responsibilities to provide for the health, welfare and safety
6 of its residents, hereby establishes a limited State
7 pharmaceutical assistance program for the elderly.
8 Section 302. Definitions.
9 The following words and phrases when used in this chapter
10 shall have the meanings given to them in this section unless the
11 context clearly indicates otherwise:
12 "AVERAGE WHOLESALE COST." THE COST OF A DISPENSED DRUG BASED <--
13 UPON THE PRICE PUBLISHED IN A NATIONAL DRUG PRICING SYSTEM IN
14 CURRENT USE BY THE DEPARTMENT OF AGING AS THE AVERAGE WHOLESALE
15 PRICE OF A PRESCRIPTION DRUG IN THE MOST COMMON PACKAGE SIZE.
16 "AVERAGE WHOLESALE PRICE." AVERAGE WHOLESALE COST.
17 "Board." The Pharmaceutical Assistance Review Board.
18 "Eligible claimant." A resident of the Commonwealth 65 years
19 of age and over, whose annual income is less than the maximum
20 annual income, and who is not otherwise qualified for public
21 assistance under the act of June 13, 1967 (P.L.31, No.21), known
22 as the Public Welfare Code.
23 "Income." All income from whatever source derived, including
24 but not limited to salaries, wages, bonuses, commissions, income
25 from self-employment, alimony, support money, cash public
26 assistance and relief, the gross amount of any pensions or
27 annuities including railroad retirement benefits, all benefits
28 received under the Federal Social Security Act (except Medicare
29 benefits), all benefits received under State unemployment
30 insurance laws and veterans' disability payments, all interest
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1 received from the Federal Government or any state government, or
2 any instrumentality or political subdivision thereof, realized
3 capital gains, rentals, workmen's compensation and the gross
4 amount of loss of time insurance benefits, life insurance
5 benefits and proceeds, except the first $5,000 of the total of
6 death benefits payments, and gifts of cash or property, other
7 than transfers by gift between members of a household, in excess
8 of a total value of $300, but shall not include surplus food or
9 other relief in kind supplied by a government agency or property
10 tax rebate.
11 "Maximum annual income." Annual income as determined by the
12 department.
13 (1) Except as provided in paragraph (2), such amount
14 shall not exceed $13,000 in the case of single persons nor
15 $16,200 in the case of the combined annual income of married
16 persons.
17 (2) If this chapter takes effect before September 1,
18 1991, the following shall apply:
19 (i) Before September 1, 1991, such amount shall not
20 exceed $12,000 in the case of single persons nor $15,000
21 in the case of the combined annual income of married
22 persons.
23 (ii) After August 31, 1991, such amount shall not
24 exceed $13,000 in the case of single persons nor $16,200
25 in the case of the combined annual income of married
26 persons.
27 "Pharmacy." A pharmacy licensed by the Commonwealth.
28 "Prescription drug." All drugs requiring a prescription in
29 this Commonwealth, insulin, insulin syringes and insulin
30 needles. Experimental drugs are prohibited.
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1 (1) Except as provided in paragraph (2), the term
2 excludes drugs which are prescribed for wrinkles or hair
3 growth.
4 (2) If this chapter takes effect before July 1, 1991,
5 then, beginning July 1, 1991, the term excludes drugs which
6 are prescribed for wrinkles or hair growth.
7 "Private contractor." A person, partnership or corporate
8 entity who enters into a contract with the Commonwealth to
9 provide services under the provisions of this chapter.
10 "Program." The pharmaceutical assistance contract for the
11 elderly as established by this chapter.
12 Section 303. Responsibilities of department.
13 (a) Determination of eligibility.--The department shall
14 adopt regulations relating to the determination of eligibility
15 of prospective claimants and providers, including dispensing
16 physicians, and the determination and elimination of program
17 abuse. To this end, the department shall establish a compliance
18 unit staffed sufficiently to fulfill this responsibility. The
19 department shall have the power to declare ineligible any
20 claimant or provider who abuses or misuses the established
21 prescription plan. The department shall have the power to
22 investigate cases of suspected provider or recipient fraud.
23 (b) Physician and pharmacy participation.--Any physician,
24 pharmacist, pharmacy or corporation owned in whole or in part by
25 a physician or pharmacist enrolled as a provider in the program,
26 or who has prescribed medication for a claimant in the program,
27 who is precluded or excluded for cause from the Department of
28 Public Welfare's Medical Assistance Program shall be precluded
29 or excluded from participation in the program. No physician
30 precluded or excluded from the Department of Public Welfare's
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1 Medical Assistance Program shall have claims resulting from
2 prescriptions paid for by the program.
3 (c) Drug utilization review system.--The department shall
4 ensure that a state-of-the-art therapeutic drug utilization
5 review system is established to monitor and correct
6 misutilization of drug therapies.
7 (d) Reduced assistance.--Any eligible claimant whose
8 prescription drug costs are covered in part by any other plan of
9 assistance or insurance may be required to receive reduced
10 assistance under the provisions of this chapter at the
11 discretion of the department.
12 (e) Rebates for expenses prohibited.--A system of rebates or
13 reimbursements to the claimant for prescription drugs shall be
14 prohibited.
15 (f) Request for proposal.--The department shall prepare a
16 request for proposal for the purpose of providing pharmaceutical
17 assistance for the elderly within this Commonwealth. Upon the
18 adoption of the General Fund Budget, the Department of Revenue
19 shall be authorized to transmit the appropriated funds in the
20 State Lottery Fund to the State Treasurer to be deposited in the
21 Pharmaceutical Assistance Contract for the Elderly Fund. This
22 fund shall consist of appropriations and interest and shall be
23 created by the State Treasurer to fund the operations of the
24 program by the department and the private contractor. Funds not
25 expended in the fiscal year in which they were appropriated
26 shall not lapse and be available for use in the next fiscal
27 year.
28 (g) Additional requests for proposals.--To provide for the
29 continued operation of the program, the department shall
30 prepare, as needed, requests for proposals in addition to that
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1 set forth in subsection (f), for the purpose of providing
2 pharmaceutical assistance for the elderly within this
3 Commonwealth. A request for proposal shall require potential
4 private contractors to submit a proposal for a period of time
5 and with monetary limitations as determined by the department.
6 Upon the enactment of an appropriation from the State Lottery
7 Fund, the Department of Revenue shall be authorized to transmit
8 the appropriated amount to the State Treasurer to be deposited
9 in the Pharmaceutical Assistance Contract for the Elderly Fund.
10 Funds not expended in the fiscal year in which they were
11 appropriated shall not lapse and shall be available for use in
12 the next fiscal year.
13 (h) Program criteria.--The program shall include the
14 following criteria:
15 (1) Participating pharmacies are to be paid within 21
16 days of the contracting firm receiving the appropriate
17 substantiation of the transaction. Pharmacies shall be
18 entitled to interest for payment not made within the 21-day
19 period at a rate approved by the board.
20 (2) Collection of the copayment by pharmacies shall be
21 mandatory.
22 (3) Senior citizens participating in the program are not
23 required to maintain records of each transaction.
24 (4) A system of rebates or reimbursements to eligible
25 claimants for pharmaceutical expenses shall be prohibited.
26 (5) The system established shall include a participant
27 copayment schedule of $4 for each prescription. The copayment
28 shall increase or decrease on the annual basis by the average
29 percent change of ingredient costs for all prescription drugs
30 plus a differential to raise the copayment to the next
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1 highest 25¢ increment. In addition, the department may
2 approve a request for increase or decrease in the level of
3 copayment based upon the financial experience and projections
4 of the program and after consultation with the board. The
5 department is prohibited from approving adjustments to the
6 copayment on more than a semiannual basis. THE DEPARTMENT <--
7 SHALL EVALUATE THE FEASIBILITY OF INSTITUTING A BIFURCATED
8 COPAYMENT DIFFERENTIATING BETWEEN NONINNOVATOR MULTIPLE-
9 SOURCE DRUGS AND SINGLE-SOURCE OR INNOVATOR MULTIPLE-SOURCE
10 DRUGS. THE DEPARTMENT SHALL REPORT ITS FINDINGS TO THE AGING
11 AND YOUTH COMMITTEE OF THE SENATE AND THE AGING AND YOUTH
12 COMMITTEE OF THE HOUSE OF REPRESENTATIVES BY JULY 1, 1992.
13 THE DEPARTMENT SHALL, BY JULY 1, 1992, INSTITUTE A BIFURCATED
14 COPAYMENT UNLESS THE FINDINGS DEMONSTRATE THAT A BIFURCATED
15 COPAYMENT IS NOT COST EFFECTIVE. AS USED IN THIS PARAGRAPH,
16 THE TERMS "INNOVATOR MULTIPLE-SOURCE DRUGS," "NONINNOVATOR
17 MULTIPLE-SOURCE DRUGS" AND "SINGLE-SOURCE DRUGS" SHALL HAVE
18 THE MEANINGS GIVEN TO THEM IN SECTION 502.
19 (6) The program shall consist of payments to pharmacies
20 on behalf of eligible claimants for the average wholesale
21 cost of drugs, insulin, insulin syringes and insulin needles
22 which exceed the copayment plus a dispensing fee of at least
23 $2.50 $2.75 or the dispensing fee established by the <--
24 department by regulation, whichever is greater.
25 (7) The average wholesale cost shall be based on a list
26 of package sizes to be established by the department. The
27 list shall reflect the average wholesale cost of drugs based
28 on the package size listed in the February 1984 "Yellow Book"
29 distributed by the Health Care Financing Administration for
30 the drugs contained on that list. The department shall have
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1 the authority to change the package size of drugs on that
2 list and to add drugs and package sizes to that list, with
3 the review and approval of the board. Changes to the list
4 shall take effect upon publication in the Pennsylvania
5 Bulletin. The department shall have the authority to
6 reimburse based upon the package sizes established in this
7 paragraph.
8 (8) In no case shall the Commonwealth be charged more
9 than the price of the drug at the particular pharmacy on the
10 date of the sale.
11 (9) For purposes of this chapter, the eligible claimant
12 shall be liable to pay a fixed differential whenever a more
13 expensive brand name drug is requested by the claimant when
14 the physician permitted substitution of a less expensive
15 generically equivalent drug approved under the provisions of
16 the act of November 24, 1976 (P.L.1163, No.259), referred to
17 as the Generic Equivalent Drug Law.
18 (10) The differential will be charged regardless of the
19 availability of a less expensive generic equivalent in the
20 providing pharmacy. In no case will the claimant bear the
21 cost of the differential when the generic equivalent is not
22 available.
23 (11) The department shall establish a pharmacist
24 consultation reimbursement program for a period of not less
25 than six months, following which the department may continue
26 or discontinue the program. This program shall provide an
27 additional $1 supplemental dispensing fee whenever a
28 pharmacy's documented intervention resulted in a physician
29 changing a prescription for a more expensive brand name
30 product to a prescription allowing substitution of a less
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1 expensive generically equivalent drug. This supplemental
2 dispensing fee shall provide the only exception to paragraph
3 (8).
4 (12) Prescription benefits for any single prescription
5 shall be limited to a 30-day supply of the prescription drug
6 or 100 units, whichever is less, except that, in the case of
7 diagnosis for acute conditions, the limitation shall be a 15-
8 day supply.
9 (13) The department may establish a restricted formulary
10 of the drugs which will not be reimbursed by the program.
11 This formulary shall include only experimental drugs and
12 drugs on the Drug Efficacy Study Implementation List prepared
13 by the Health Care Finance Administration. A medical
14 exception may be permitted by the department for
15 reimbursement of a drug on the Drug Efficacy Study
16 Implementation List upon declaration of its necessity on the
17 prescription by the treating physician; except that, for DESI
18 drugs for which the FDA has issued a Notice for Opportunity
19 Hearing (NOOH) for the purpose of withdrawing the New Drug
20 Application approved for that drug, reimbursement coverage
21 shall be discontinued under the provisions of this chapter.
22 (14) The department may not enter into a contract with a
23 private contractor for an exclusive mail order system for the
24 delivery of prescription drugs under this program. Only mail
25 order pharmacy services provided by pharmacies which are
26 licensed by the Commonwealth and which have their principal
27 place of business within this Commonwealth may participate as
28 providers under the program. The department shall develop and
29 promulgate specific regulations governing the practice of
30 mail order pharmacy and other enrolled providers to include
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1 the following minimum standards of practice to ensure the
2 health, safety and welfare of program participants:
3 (i) The appropriate method or methods by which such
4 pharmacies shall verify the identity of the program
5 recipient and the authenticity of prescriptions received.
6 (ii) The appropriate method or methods by which such
7 pharmacies shall mail or deliver prescription drugs to
8 program recipients ensuring, to the maximum extent
9 possible, that the intended program recipient is the
10 actual ultimate recipient of any prescription dispensed
11 by such pharmacies.
12 (iii) The appropriate method or methods by which
13 such pharmacies shall communicate with program
14 participants in emergency situations.
15 (15) The program must be in place and operational within
16 90 days of the effective date of the contract.
17 (16) For-profit third party insurers and not-for-profit
18 prescription plans shall reimburse the department for any
19 payments made to a providing pharmacy on behalf of a claimant
20 covered by such a third party.
21 (17) Any health care professional rendering service as a
22 member of a utilization review committee for this program
23 shall not be liable for any civil damages as a result of any
24 acts or omissions in rendering the service as a member of any
25 such committee except any acts or omissions intentionally
26 designed to harm or any grossly negligent acts or omissions
27 which result in harm to the person receiving such service.
28 (18) The department shall annually verify the income of
29 eligible claimants. Verification shall be accomplished by a
30 random TARGETED sampling of 10% 5% of the eligible claimants. <--
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1 (i) Reports by department.--The department shall maintain
2 monthly statistical records on the program to effectively
3 determine the cost of the program, level of participation and
4 any patterns of unusual drug usage. Based on this information,
5 the department shall submit a report every six months to the
6 Aging and Youth Committee in the Senate, the Aging and Youth
7 Committee in the House of Representatives and the board. The
8 semiannual report shall contain, but is not limited to, all
9 information relating to the number of persons served by the
10 program, their counties of residence, a breakdown of the numbers
11 and kinds of pharmaceuticals used, the cost of prescriptions and
12 an estimate of actual expenses incurred by pharmacists
13 participating in the program.
14 (j) Adjustments to program.--The department is authorized to
15 enter into discussions with the private contractor pursuant to
16 section 305(c).
17 Section 304. Contract.
18 The department is authorized to enter into a contract
19 providing for prescription drugs to eligible persons pursuant to
20 this chapter. The department shall select a proposal that
21 includes, but is not limited to, the criteria set forth in
22 section 303.
23 Section 305. Board.
24 (a) Establishment.--A Pharmaceutical Assistance Review Board
25 shall be established to ensure that the program is providing and
26 continues to provide the assistance intended in a fiscally
27 responsible manner without excessively hampering the
28 pharmaceutical industry.
29 (b) Composition.--The board shall be comprised of the
30 following seven persons:
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1 (1) The Secretary of Aging, who shall serve as its
2 chairman.
3 (2) The Secretary of Revenue.
4 (3) The Secretary of Health.
5 (4) Four public members, one appointed by the President
6 pro tempore of the Senate, one appointed by the Minority
7 Leader of the Senate, one appointed by the Speaker of the
8 House of Representatives and one appointed by the Minority
9 Leader of the House of Representatives. Those appointed shall
10 include two senior citizens, WHO HAVE NOT BEEN A PART OF THE <--
11 PHARMACEUTICAL INDUSTRY, TO SERVE AS CONSUMER ADVOCATES and
12 two representatives of the pharmaceutical industry, at least
13 one of whom is a practicing Pennsylvania pharmacist. A public
14 member who misses two consecutive meetings without good cause
15 acceptable to the chairman shall be replaced by the
16 appointing authority.
17 (c) Review.--Using the semiannual reports submitted by the
18 department pursuant to section 303(i) and other appropriate data
19 sources, the board shall conduct a semiannual review. The board
20 shall develop recommendations concerning any changes in the
21 level of copayment or in the level of fees paid to participating
22 pharmacists. The board may also recommend other changes in the
23 structure of the program and direct the department to enter into
24 discussions with the private contractor concerning amendments to
25 the contract. The copayment schedule shall only be adjusted on a
26 semiannual basis.
27 Section 306. Penalties.
28 (a) Prohibited acts and criminal penalties.--It shall be
29 unlawful for any person to submit a false or fraudulent claim or
30 application under this chapter; to aid or abet another in the
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1 submission of a false or fraudulent claim or application; to
2 receive benefits or reimbursement under a private, Federal or
3 State program for prescription assistance and claim or receive
4 duplicative benefits hereunder; to solicit, receive, offer or
5 pay any kickback, bribe or rebate, in cash or in-kind, from or
6 to any person in connection with the furnishing of services
7 under this chapter; or to otherwise violate any provision of
8 this chapter. Any person who commits a prohibited act shall be
9 charged with a criminal offense pursuant to the provisions of 18
10 Pa.C.S. (relating to crimes and offenses).
11 (b) Suspension of license.--Any provider who has been found
12 guilty under this chapter shall be subject to a suspension of
13 his license to practice for a period of one year.
14 (c) Repayment of gain.--Any provider or recipient who is
15 found guilty under this chapter is subject to repay three times
16 the value of the material gain he received.
17 Section 307. Prescription drug education program.
18 The department, in cooperation with the Department of Health,
19 shall develop and implement a Statewide prescription drug
20 education program designed to inform older adults of the dangers
21 of prescription drug abuse and misuse. The prescription drug
22 education program shall include, but not be limited to,
23 information concerning the following:
24 (1) The hazards of prescription drug overdose.
25 (2) The potential dangers of mixing prescription drugs.
26 (3) The danger of retaining unused prescription drugs
27 after the need to take them no longer exists.
28 (4) The necessity to carefully question physicians and
29 pharmacists concerning the effects of taking prescription
30 drugs.
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1 (5) The advisability of maintaining a prescription drug
2 profile or other record of prescription drug dosage and
3 frequency of dosage.
4 (6) The desirability of advising family members of the
5 types and proper dosage of prescription drugs which are being
6 taken.
7 (7) The dangers of taking prescription drugs in excess
8 of prescribed dosages.
9 (8) The need to obtain complete, detailed directions
10 from the physician or pharmacist concerning the time period a
11 prescription drug should be taken.
12 CHAPTER 5
13 PRUDENT PHARMACEUTICAL PURCHASING
14 Section 501. Declaration of policy.
15 The General Assembly finds and declares as follows:
16 (1) The Commonwealth, through assistance programs
17 enacted for the benefit of its citizens, is the largest
18 single payor of prescription medications in Pennsylvania.
19 (2) The Commonwealth is not provided with volume
20 discounts for the purchase of pharmaceutical products which
21 (discounts) are being provided to other large volume
22 purchasers and reimbursers of these products; and, as a
23 result of this harmful practice, the Commonwealth is paying a
24 price in excess of the price established for prescription
25 medications sold to other high volume purchasers.
26 (3) Because of this harmful practice, the Commonwealth
27 is expending public funds appropriated for health and welfare
28 programs in an inefficient manner, thereby jeopardizing
29 essential programs designed to benefit the health and welfare
30 of as many of the Commonwealth's citizens as possible with
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1 available public funds.
2 (4) In order to ensure that the Commonwealth, in
3 expending money on behalf of its citizens, is not unduly
4 harmed by being required to pay a price for pharmaceutical
5 products purchased from manufacturers in excess of that
6 established for other purchasers and reimbursers of these
7 products and to ensure that the Commonwealth can efficiently
8 and prudently expend its money and maximize its ability to
9 provide for the health and welfare of as many of its needy
10 citizens as possible, it is reasonable, necessary and in the
11 public interest to require that pharmaceutical manufacturers
12 which offer any discount to any public body, hospital or
13 nonprofit organization must offer a similar discount to the
14 Commonwealth for pharmaceutical products purchased or
15 reimbursed through State agencies.
16 (5) It is in the public interest, and not
17 overburdensome, for pharmaceutical manufacturers to provide
18 the Commonwealth with data relating to the price of
19 pharmaceutical products sold by the manufacturer to public
20 bodies, hospitals, for profit or nonprofit organizations,
21 other manufacturers or wholesalers doing business in this
22 Commonwealth in order to ensure that the Commonwealth can
23 determine that it is being provided with the best prices
24 offered by the manufacturer.
25 (6) On a national level, there has been a recognition
26 that the need for discounts to State Medicaid agencies, which
27 reimburse for a high volume of pharmaceutical products,
28 exists.
29 (7) It is further recognized that some pharmaceutical
30 manufacturers have circumvented the intent of Federal
19910H1470B2277 - 17 -
1 Medicaid legislation by eliminating or decreasing the
2 discounts to purchasers and reimbursers in the Commonwealth.
3 (8) Single-source drugs and innovator multiple-source
4 drugs are the highest-priced drug products on the
5 pharmaceutical market and have been the primary cause of
6 drug-price inflation and the dramatic increase in public
7 funds expended by the PACE Program and General Assistance
8 Program.
9 (9) Manufacturers of single-source drugs experience no
10 competition and an exclusive market for a significant period
11 of time since these drugs are under patent. Once the patent
12 expires on a single-source drug, the price of the drug
13 usually increases dramatically even when noninnovator
14 multiple-source drug competition exists.
15 (10) Manufacturers of noninnovator multiple-source
16 drugs, generics, have experienced a significant expansion in
17 market share from coverage by the PACE Program and General
18 Assistance Program. It is recognized, however, that
19 noninnovator multiple-source drugs are less costly and have
20 significantly less of a profit margin than both single-source
21 drugs and innovator multiple-source drugs.
22 Section 502. Definitions.
23 The following words and phrases when used in this chapter
24 shall have the meanings given to them in this section unless the
25 context clearly indicates otherwise:
26 "Average manufacturers price (AMP)." Within a calendar
27 quarter, the average unit price paid to the manufacturer for a
28 drug in this Commonwealth by wholesalers doing business in this
29 Commonwealth for drugs distributed to the retail pharmacy class
30 of trade, excluding direct sales to hospitals and health
19910H1470B2277 - 18 -
1 maintenance organizations through the Federal supply schedule
2 and excluding direct sales to a distributor where the drug is
3 relabeled under that distributor's national drug code number.
4 The term includes cash discounts and all other price reductions
5 other than rebates under this act. AMP shall be adjusted by the
6 manufacturer if cumulative discounts or other arrangements
7 subsequently adjust the prices actually realized. For capitated
8 sales, the allocation of the discount shall be made
9 proportionately to the dollar value of the units of each drug
10 sold under the capitated arrangement.
11 "Best price."
12 (1) For current covered prescription drugs, the lesser
13 of:
14 (i) the lowest price available for the drug in this
15 Commonwealth from the manufacturer to any wholesaler,
16 retailer, provider, private entity or governmental entity
17 doing business in this Commonwealth during the quarter;
18 or
19 (ii) the lowest price available for the drug, as of
20 July 1, 1990, in this Commonwealth from the manufacturer
21 to any wholesaler, retailer, provider, private entity or
22 governmental entity doing business in this Commonwealth,
23 increased by the percentage increase in the Consumer
24 Price Index-Urban from July 1990 to the month before the
25 beginning of the calendar quarter involved.
26 UNDER THIS PARAGRAPH, IN NO CASE SHALL THE BEST PRICE BE LESS <--
27 THAN 65% OF THE AVERAGE WHOLESALE PRICE AS PUBLISHED IN THE
28 MEDICAL ECONOMICS DRUG TOPICS REDBOOK AS OF JULY 1, 1990,
29 INCREASED BY THE PERCENTAGE INCREASE IN THE CONSUMER PRICE
30 INDEX-URBAN FROM JULY 1, 1990, TO THE MONTH BEFORE THE
19910H1470B2277 - 19 -
1 BEGINNING OF THE CALENDAR QUARTER INVOLVED.
2 (2) For new drugs approved for marketing after July 1,
3 1990, the lesser of:
4 (i) the lowest price available for the drug in this
5 Commonwealth from the manufacturer to any wholesaler,
6 retailer, provider, private entity or governmental entity
7 doing business in this Commonwealth during the quarter;
8 or
9 (ii) the lowest price available for the drug, during
10 the first month in which the drug was marketed, in this
11 Commonwealth from the manufacturer to any wholesaler,
12 retailer, provider, private entity or governmental entity
13 doing business in this Commonwealth, increased by the
14 percentage increase in the Consumer Price Index-Urban
15 from the first day of the first month of marketing to the
16 beginning of the calendar quarter involved.
17 (3) The term excludes any price less than 10% of the AMP
18 in the same quarter for which the AMP is computed.
19 (4) The term includes Federal supply schedule prices.
20 (5) Best price shall be determined on a unit basis and
21 shall be adjusted by the manufacturer if cumulative
22 discounts, rebates or other arrangements subsequently adjust
23 the prices actually realized. For capitated sales, the
24 allocation of the discount shall be made proportionately to
25 the dollar value of the units of each drug sold under the
26 capitated arrangement.
27 "Capitated sales." The packaging of drugs of different types
28 where:
29 (1) the condition of rebate or discount is that more
30 than one drug type is purchased; or
19910H1470B2277 - 20 -
1 (2) the resulting discount or rebate is greater than
2 that which would have been received had the drug products
3 been purchased separately.
4 "Consumer Price Index-Urban." The index of consumer prices
5 developed and updated by the Bureau of Labor Statistics of the
6 United States Department of Labor.
7 "Covered prescription drug." A legend drug, insulin, an
8 insulin syringe or an insulin needle eligible for payment by the
9 Commonwealth under the PACE Program or under the General
10 Assistance Program.
11 "Depot price." The price available to any depot of the
12 Federal government for purchase of drugs from the manufacturer
13 through the depot system of procurement.
14 "Direct seller." Any person, partnership, corporation,
15 institution or entity engaged in the selling of pharmaceutical
16 products directly to consumers in this Commonwealth.
17 "Distributor." A private entity under contract with the
18 original labeler or holder of the national drug code number to
19 manufacture, package or market the covered prescription drug.
20 "Doing business in this Commonwealth." The direct or
21 indirect selling or the making of covered prescription drugs
22 available for sale in a continuous and systematic manner with
23 the reasonable expectation that these products will be sold to
24 consumers in this Commonwealth.
25 "FDA." The Food and Drug Administration of the Public Health
26 Service of the Department of Health and Human Services.
27 "General Assistance Program." The General Assistance Program
28 of the Department of Public Welfare.
29 "Innovator multiple-source drugs." A multiple-source drug
30 that was originally marketed under a new drug application
19910H1470B2277 - 21 -
1 approved by the FDA. The term includes:
2 (1) covered prescription drugs approved under Product
3 License Approval (PLA), Establishment License Approval (ELA)
4 or Antibiotic Drug Approval (ADA); and
5 (2) a covered prescription drug marketed by a cross-
6 licensed producer or distributor under the approved Amended
7 New Drug Application (ANDA) when the drug product meets this
8 definition.
9 "Lowest price." Includes cash discounts, free goods, volume <--
10 discounts and rebates, educational grants or subsidies and other
11 financial incentives that a manufacturer offers, as an
12 inducement to buy the manufacturer's drug, to wholesalers;
13 retailers; providers; private and government entities, including
14 but not limited to hospitals and health maintenance
15 organizations. Lowest price is determined regardless of special
16 packaging labeling or identifiers on the dosage form or product
17 or package. The term does not include depot prices of agencies
18 of the Federal Government or rebates under this chapter.
19 "Manufacturer."
20 (1) An entity which is engaged in any of the following:
21 (i) The production, preparation, propagation,
22 compounding, conversion or processing of prescription
23 drug products:
24 (A) directly or indirectly by extraction from
25 substances of natural origin;
26 (B) independently by means of chemical
27 synthesis; or
28 (C) by a combination of extraction and chemical
29 synthesis.
30 (ii) The packaging, repackaging, labeling or
19910H1470B2277 - 22 -
1 relabeling, or distribution of prescription drug
2 products.
3 (2) The entity holding legal title to or possession of
4 the National Drug Code number for the covered prescription
5 drug.
6 (3) The term does not include a wholesale distributor of
7 drugs, drugstore chain organization or retail pharmacy
8 licensed by the Commonwealth.
9 "National drug code number." The identifying drug number
10 maintained by the FDA. The complete eleven digit number must
11 include the labeler code, product code and package size code.
12 "New drug." A covered prescription drug approved as a new
13 drug under section 201(p) of the Federal Food, Drug, and
14 Cosmetic Act (52 Stat. 1040, 21 U.S.C. § 321(p)).
15 "Noninnovator multiple-source drug." Any of the following:
16 (1) A covered prescription drug which is not an
17 innovator multiple-source drug approved under an Amended New
18 Drug Application (ANDA) or an Amended Antibiotic Drug
19 Approval (AADA).
20 (2) A drug that has been approved for substitution under
21 the act of November 24, 1976 (P.L.1163, No.259), referred to
22 as the Generic Equivalent Drug Law.
23 "PACE Program." The program under Chapter 3.
24 "PRICE." ANY CONSIDERATION PAID FOR A DRUG. THE TERM <--
25 INCLUDES CASH DISCOUNTS, FREE GOODS, VOLUME DISCOUNTS AND
26 REBATES, EDUCATIONAL GRANTS OR SUBSIDIES AND OTHER FINANCIAL
27 INCENTIVES THAT A MANUFACTURER OFFERS, AS AN INDUCEMENT TO BUY
28 THE MANUFACTURER'S DRUG, TO WHOLESALERS; RETAILERS; PROVIDERS;
29 PRIVATE AND GOVERNMENT ENTITIES, INCLUDING, BUT NOT LIMITED TO,
30 HOSPITALS AND HEALTH MAINTENANCE ORGANIZATIONS. PRICE IS
19910H1470B2277 - 23 -
1 DETERMINED REGARDLESS OF SPECIAL PACKAGING LABELING OR
2 IDENTIFIERS ON THE DOSAGE FORM OR PRODUCT OR PACKAGE. THE TERM
3 DOES NOT INCLUDE DEPOT PRICES OF AGENCIES OF THE FEDERAL
4 GOVERNMENT OR REBATES UNDER THIS CHAPTER OR RESEARCH AND
5 DEVELOPMENT GRANTS MADE TO MEDICAL INSTITUTIONS FOR EDUCATIONAL
6 PURPOSES.
7 "Private entity." Includes a for-profit entity and a
8 nonprofit entity.
9 "Provider." A pharmacy or dispensing physician enrolled as a
10 provider in the PACE Program or the General Assistance Program
11 or a pharmacy licensed by the Commonwealth.
12 "Secretary." The Secretary of Aging of the Commonwealth.
13 "Single-source drugs." Legend drug products for which the
14 FDA has not approved an Amended New Drug Application (ANDA).
15 "Unit." A discreet unit of a product, including but not
16 limited to a tablet or capsule, milliliters for liquid
17 formulations and grams for ointments and creams.
18 "Wholesaler." Any person, partnership, corporation,
19 institution or entity to which the manufacturer sells the
20 covered prescription drug, including a pharmacy or chain of
21 pharmacies, but that does not relabel or repackage the covered
22 prescription drug.
23 Section 503. Rebate agreement.
24 (a) Requirement.--The PACE Program and the General
25 Assistance Program shall not reimburse for any covered
26 prescription drug without a rebate agreement between the
27 department and the manufacturer of the covered prescription
28 drug.
29 (b) Exception.--Subsection (a) shall not apply if all of the
30 following apply:
19910H1470B2277 - 24 -
1 (1) The covered prescription drug is rated "1-A,
2 'important' new drug," by the FDA.
3 (2) The availability of the drug is essential to the
4 health of eligible claimants as determined by the department.
5 (c) Agreements.--Manufacturers of prescription drugs
6 reimbursed under the PACE Program and the General Assistance
7 Program must enter into a rebate agreement with the department
8 within 60 days of the effective date of this chapter. If a
9 manufacturer has not entered into an agreement within the 60-day
10 period, an agreement subsequently entered into shall not be
11 effective until the first day of the calendar quarter that
12 begins 60 days after the date the agreement is entered into.
13 (d) Notice.--The department shall notify enrolled providers
14 of the PACE Program on an annual basis and as appropriate of all
15 manufacturers who have entered into a rebate agreement.
16 Section 504. Terms of rebate agreement.
17 (a) Quarterly basis.--A rebate agreement shall require any
18 manufacturer of covered prescription drugs to provide to the
19 department a rebate each calendar quarter in an amount specified
20 in section 505 for covered prescription drugs of the
21 manufacturer reimbursed during the quarter. The rebate shall be
22 paid by the manufacturer not later than 30 days after the date
23 of receipt of the information described in subsection (b) for
24 the period involved.
25 (b) Information.--
26 (1) The department shall report to each manufacturer,
27 not later than 60 days after the end of each calendar
28 quarter, information on the total number of dosage units of
29 each covered prescription drug reimbursed under the PACE
30 Program and under the General Assistance Program during the
19910H1470B2277 - 25 -
1 quarter.
2 (2) A manufacturer may review the information provided
3 under paragraph (1) and verify information. Adjustments to
4 rebates shall be made to the extent that information
5 indicates that utilization was greater or less than the
6 amount previously specified.
7 (3) In the event that, in any quarter, a material
8 discrepancy in the department's information is certified by
9 the manufacturer prior to the due date of the rebate, the
10 department and the manufacturer shall, in good faith, attempt
11 to resolve the discrepancy. If resolution is not reached
12 within 30 days of receipt of the manufacturer's certification
13 by the department, the manufacturer may appeal the
14 department's decision under the department's formal fair
15 hearings and appeals process. The manufacturer shall pay the
16 department that portion of the rebate amount which is not
17 disputed within the required time frame under this chapter.
18 Any balance due, plus statutory interest, shall be paid or
19 credited by the manufacturer or the department by the due
20 date of the next quarterly payment after resolution of the
21 dispute.
22 (c) Manufacturer provisions of price information.--
23 (1) Each manufacturer with an agreement in effect under
24 this chapter shall report to the department, not later than
25 30 days after the last day of each quarter, all of the
26 following:
27 (i) The average manufacturer price.
28 (ii) For single-source drugs and innovator multiple-
29 source drugs:
30 (A) the manufacturer's best price for covered
19910H1470B2277 - 26 -
1 prescription drugs for the quarter; and
2 (B) the best price in effect on July 1, 1990.
3 (iii) For new drugs, the best price in effect during
4 the first month of marketing of the new drug.
5 (2) The department may SHALL RETAIN THE SERVICES OF AN <--
6 INDEPENDENT CONTRACTOR TO survey wholesalers, direct sellers
7 and manufacturers that directly distribute their covered
8 prescription drugs, when necessary, to verify manufacturer
9 prices reported under paragraph (1). ANY SURVEY CONDUCTED <--
10 SHALL NOT REVEAL TO THE DEPARTMENT NOR TO ANY OTHER PERSON OR
11 ENTITY OTHER THAN THE INDEPENDENT CONTRACTOR THE NAME,
12 IDENTITY, LOCATION, ACTUAL ACQUISITION INVOICE, OTHER
13 PROPRIETARY INFORMATION OR ANY INFORMATION FROM WHICH THE
14 DEPARTMENT MIGHT BE ENABLED TO ASCERTAIN THE NAME, IDENTITY
15 OR LOCATION OF ANY WHOLESALER, DIRECT SELLER OR PROVIDER SO
16 SURVEYED UNLESS THE CONTRACTOR SHALL HAVE GATHERED SUFFICIENT
17 EVIDENCE TO ENABLE THE DEPARTMENT TO BRING CHARGES AGAINST
18 ANY WHOLESALER, DIRECT SELLER OR PROVIDER IN VIOLATION OF
19 SUBSECTION (D)(3).
20 (d) Penalties.--The department shall administer penalties as
21 follows:
22 (1) A manufacturer who fails to supply information
23 required under subsection (c)(1) shall be liable for a civil
24 penalty in the amount of 2% of the rebate next required to be
25 paid, plus $1,000 for each day that the information is late.
26 If the information is not reported within 30 days of the due
27 date, the agreement shall be suspended for services furnished
28 after the end of the 30-day period until the date the
29 information is reported or the expiration of 45 days,
30 whichever is later.
19910H1470B2277 - 27 -
1 (2) A manufacturer who knowingly supplies false
2 information that is required under subsection (c)(1) shall be
3 liable for a civil penalty in the amount of $50,000 for each
4 item of false information.
5 (3) A direct seller, manufacturer or wholesaler who
6 refuses a request for information, or knowingly provides
7 false information, that is required under subsection (c)(2)
8 shall be liable for a civil penalty in the amount of $50,000.
9 (4) Penalties collected under this subsection shall be
10 deposited into the fund.
11 (5) All civil monetary penalties imposed under this
12 chapter are in addition to other civil or criminal penalties.
13 (e) Confidentiality of information.--Information disclosed
14 by manufacturers, wholesalers or direct sellers under this
15 chapter is confidential and shall not be disclosed by the
16 department in a form which discloses the identity of a specific
17 manufacturer, wholesaler or direct seller or the prices charged
18 for drugs by the manufacturer or wholesaler, except as the
19 department determines to be necessary to carry out this chapter
20 and to permit the Department of the Auditor General and the
21 Office of State Inspector General to review the information
22 provided.
23 (f) Length of agreement.--A rebate agreement shall remain in
24 effect for an initial period of not less than one year and shall
25 be automatically renewed for a period of not less than one year
26 unless terminated under subsection (g).
27 (g) Termination.--
28 (1) The department may provide for termination of a
29 rebate agreement for any reason. Termination shall not be
30 effective earlier than 60 days after the date of receipt of
19910H1470B2277 - 28 -
1 notice of termination by the manufacturers.
2 (2) A manufacturer may terminate a rebate agreement for
3 any reason. Termination shall not be effective earlier than
4 60 days after the date of receipt of notice of termination by
5 the department.
6 (3) Termination of the rebate agreement shall not affect
7 rebates due under the agreement before the effective date of
8 termination.
9 (4) Commonwealth Court shall have original jurisdiction
10 over cases of termination of agreements under this
11 subsection. Commencement of an action under this paragraph
12 shall not delay the effective date of termination.
13 (5) If a rebate agreement is terminated for cause,
14 another agreement with the same manufacturer or a successor
15 manufacturer may not be entered into until a period of one
16 year has elapsed from the date of the termination unless the
17 department finds good cause for an earlier agreement.
18 Section 505. Amount of rebate.
19 (a) Single-source drugs and innovator multiple-source
20 drugs.--
21 (1) With respect to single-source drugs and innovator
22 multiple-source drugs, each manufacturer shall remit a rebate
23 to the Commonwealth. Except as otherwise provided in this
24 section, the amount of the rebate to the Commonwealth per
25 calendar quarter with respect to each dosage form and
26 strength of single-source drugs and innovator multiple-source
27 drugs shall be equal to the product of the total number of
28 units of each dosage form and strength reimbursed by the PACE
29 Program and the General Assistance Program in the quarter and
30 one of the following:
19910H1470B2277 - 29 -
1 (i) For quarters beginning after April 1, 1991, and
2 before January 1, 1993, the greater of the following:
3 (A) The difference between the average
4 manufacturer price and 87.5% of that price, after
5 deducting customary prompt payment discounts, for the
6 quarter.
7 (B) The difference between the average
8 manufacturer price for a drug and the best price. For <--
9 calendar quarters beginning after April 1, 1991, and
10 ending before January 1, 1992, the rebate under this
11 clause shall not exceed 50% of the average
12 manufacturer price. For calendar quarters beginning
13 after December 31, 1991, and ending before January 1,
14 1993, the rebate under this clause shall not exceed
15 75% of the average manufacturer price.
16 UNDER THIS SUBPARAGRAPH, IN NO CASE SHALL THE REBATE <--
17 EXCEED 35% OF THE AVERAGE WHOLESALE PRICE AS PUBLISHED IN
18 THE MEDICAL ECONOMICS DRUG TOPICS REDBOOK AS OF JULY 1,
19 1990, INCREASED BY THE PERCENTAGE INCREASE IN THE
20 CONSUMER PRICE INDEX-URBAN FROM JULY 1, 1990, TO THE
21 MONTH BEFORE THE BEGINNING OF THE CALENDAR QUARTER
22 INVOLVED.
23 (ii) For quarters beginning after December 31, 1992,
24 the greater of the following:
25 (A) The difference between the average
26 manufacturer price for a drug and 85% of that price.
27 (B) The difference between the average
28 manufacturer price for a drug and the best price for
29 the quarter for that drug.
30 (2) Rebates for a covered prescription drug based on
19910H1470B2277 - 30 -
1 paragraph (1)(i)(B) may not exceed the rebate amount for a
2 covered prescription drug under the provisions of Title IV,
3 Subtitle B, of the Omnibus Budget Reconciliation Act of 1990
4 (Public Law 101-508, 104 Stat. 1388), relating to
5 pharmaceutical access and prudent purchasing of
6 pharmaceutical materials until the earlier of the following:
7 (i) The date state pharmaceutical programs are
8 exempted from such legislation.
9 (ii) October 1, 1991.
10 (b) Rebate for other drugs.--
11 (1) The amount of the rebate to the Commonwealth for a
12 calendar quarter with respect to covered prescription drugs
13 which are noninnovator multiple-source drugs shall be equal
14 to the product of:
15 (i) the applicable percentage of the average
16 manufacturer price, after deducting customary prompt
17 payment discounts, for each dosage form and strength of
18 such drugs for the quarter; and
19 (ii) the number of units of such form and dosage
20 reimbursed by the PACE Program and the General Assistance
21 Program in the quarter.
22 (2) For the purposes of paragraph (1), the applicable
23 percentage is:
24 (i) with respect to calendar quarters beginning
25 after April 1, 1991, and ending before January 1, 1994,
26 10%; and
27 (ii) with respect to calendar quarters beginning on
28 or after December 31, 1993, 11%.
29 Section 506. Exemption.
30 Section 306(a) shall not apply to rebates under this chapter.
19910H1470B2277 - 31 -
1 Section 507. Disposition of funds.
2 (a) PACE Program.--Money received under this chapter in
3 connection with the PACE Program shall be deposited in the
4 Pharmaceutical Assistance Contract for the Elderly Fund.
5 (b) General Assistance Program.--Money received under this
6 chapter in connection with the General Assistance Program shall
7 augment the medical assistance outpatient appropriation to the
8 Department of Public Welfare.
9 Section 508. Existing agreements.
10 Any rebate agreement between the department and a
11 manufacturer entered into prior to the effective date of this
12 chapter shall remain in effect and be considered a rebate
13 agreement in compliance with this chapter until the agreement
14 expires or until either party terminates the agreement.
15 CHAPTER 7
16 SHARED RIDES <--
17 TRANSPORTATION SERVICES <--
18 Section 701. Definitions.
19 The following words and phrases when used in this chapter
20 shall have the meanings given to them in this section unless the
21 context clearly indicates otherwise:
22 "Shared ride public transportation services." Demand
23 responsive transportation that is available to the general
24 public, operates on a nonfixed route basis and charges a fare to
25 all riders. For transportation to be included in this
26 definition, the first fare paying passengers to enter the public
27 transportation vehicle must not refuse to share the vehicle with
28 other passengers during a given trip. The term excludes
29 exclusive ride taxi service, charter and sightseeing services,
30 nonpublic transportation, transportation to and from airports
19910H1470B2277 - 32 -
1 and school bus and limousine services.
2 Section 702. Department of Transportation.
3 The Department of Transportation has the power and duty to
4 make grants from the fund to transportation companies, county
5 transportation systems and local transportation organizations to
6 pay estimated transit losses resulting from providing free
7 service or local common carrier mass transportation systems to
8 persons 65 years of age or older when passage is on fixed route
9 public transportation services during nonpeak riding hours and
10 on holidays and weekends. Reimbursement shall be as follows:
11 (1) The losses resulting from granting service on mass
12 transportation systems shall be reimbursable at 100% of the
13 system's average or base fare, whichever is less, multiplied
14 by the number of trips made by senior citizens participating
15 in the free transit program.
16 (2) Notwithstanding paragraph (1), the department shall,
17 with the approval of the Governor's Office of the Budget,
18 reimburse transportation companies or local transportation
19 organizations for 100% of the losses resulting from senior
20 citizen transfer trips incurred under the conditions of this
21 subsection.
22 (3) Money appropriated from the General Fund to the
23 Department of Transportation to augment fixed route public
24 transportation services under this section shall be granted
25 to transportation providers at the discretion of the
26 Department of Transportation.
27 Section 703. Human service shared ride transportation services
28 for older adults.
29 (a) Program grants.--The Department of Transportation has
30 the power and duty to administer, utilizing a fixed amount of
19910H1470B2277 - 33 -
1 money from the fund as appropriated by the General Assembly, a
2 program providing shared ride public transportation services for
3 adults 65 years of age or older. Individuals utilizing shared
4 ride public transportation services for older adults shall
5 contribute 15% of the individual fare and 85% of the individual
6 fare shall be reimbursed by the fund.
7 (b) Study.--The department, in cooperation with the <--
8 Department of Transportation, shall conduct a study addressing
9 options for future administration of the shared ride program.
10 (B) FUTURE OPTIONS.-- <--
11 (1) THE DEPARTMENT, IN COOPERATION WITH THE DEPARTMENT
12 OF TRANSPORTATION, SHALL CONDUCT A STUDY ADDRESSING OPTIONS
13 FOR FUTURE ADMINISTRATION OF THE SHARED RIDE PROGRAM. THE
14 DEPARTMENT SHALL REPORT ITS FINDINGS TO THE AGING AND YOUTH
15 COMMITTEE OF THE SENATE AND THE AGING AND YOUTH COMMITTEE OF
16 THE HOUSE OF REPRESENTATIVES BY MARCH 1, 1992.
17 (2) THE DEPARTMENT AND THE DEPARTMENT OF TRANSPORTATION
18 SHALL CONDUCT A STUDY OF THE EXISTING SHARED RIDE PROGRAMS
19 FOR CITIES OF THE FIRST CLASS. THE STUDY SHALL INCLUDE
20 INFORMATION ON RIDERSHIP LEVELS, COMPLAINTS PER 1,000 RIDES,
21 TELEPHONE SERVICE, PUBLIC INFORMATION EFFORTS, NO-SHOW
22 ANALYSIS, CONTRACT ENFORCEMENT AND OTHER CONCERNS IDENTIFIED
23 BY THE DEPARTMENTS. THE COMPLETED STUDY, WITH APPROPRIATE
24 RECOMMENDATIONS FOR THE OPERATION OF THE SHARED RIDE PROGRAMS
25 IN CITIES OF THE FIRST CLASS, SHALL BE SUBMITTED TO THE AGING
26 AND YOUTH COMMITTEE, THE APPROPRIATIONS COMMITTEE AND THE
27 TRANSPORTATION COMMITTEE OF THE SENATE AND TO THE AGING AND
28 YOUTH COMMITTEE, THE APPROPRIATIONS COMMITTEE AND THE
29 TRANSPORTATION COMMITTEE OF THE HOUSE OF REPRESENTATIVES BY
30 FEBRUARY 7, 1992. AFTER REVIEW OF THE STUDY, THE GENERAL
19910H1470B2277 - 34 -
1 ASSEMBLY MAY, BY RESOLUTION, DIRECT THE DEPARTMENT OF
2 TRANSPORTATION TO CONSIDER, BY MAY 1, 1992, ALTERNATE
3 APPROACHES TO THE PROVISION OF SHARED RIDE SERVICES IN CITIES
4 OF THE FIRST CLASS. AFTER SUBMISSION OF THE STUDY UNDER THIS
5 PARAGRAPH AND BEFORE JUNE 30, 1992, THE DEPARTMENT OF
6 TRANSPORTATION AND CONTRACTED PROVIDERS OF SHARED RIDE
7 SERVICES IN CITIES OF THE FIRST CLASS MAY INCORPORATE
8 RECOMMENDATIONS FROM THE STUDY INTO EXISTING CONTRACTS.
9 (c) Regulations.--The Department of Transportation shall
10 promulgate regulations necessary to carry out the purposes of
11 this section. The Department of Transportation, in consultation
12 with the Pennsylvania Public Utility Commission and the
13 department, shall establish reasonable per mile or trip fare
14 limits for purposes of subsection (a). In accordance with
15 section 2203-A(27) of the act of April 9, 1929 (P.L.177,
16 No.175), known as The Administrative Code of 1929, no regulation
17 shall take effect until submitted to the department for comment.
18 (d) Entitlement not created.--Nothing in this chapter
19 creates or provides any individual with an entitlement to
20 services. It is the intent of the General Assembly that services
21 under this chapter shall be made available only to the extent of
22 the availability and level of appropriations made by the General
23 Assembly.
24 CHAPTER 9
25 MISCELLANEOUS PROVISIONS
26 Section 901. Savings.
27 (A) GENERAL RULE.--This act does not affect any act done, <--
28 regulation promulgated, liability incurred or right accrued or
29 vested or affect any civil or criminal proceeding pending or to
30 be commenced to enforce any right or penalty or punish any
19910H1470B2277 - 35 -
1 offense under any statute or part of a statute repealed by this
2 act.
3 (B) REFERENCES.--THE REFERENCE TO THE ACT OF JANUARY 22, <--
4 1968 (P.L.42, NO.8), KNOWN AS THE PENNSYLVANIA URBAN MASS
5 TRANSPORTATION ASSISTANCE LAW OF 1967, IN SECTION 12 OF THE ACT
6 OF AUGUST 26, 1971 (P.L.351, NO.91), KNOWN AS THE STATE LOTTERY
7 LAW, SHALL BE DEEMED A REFERENCE TO CHAPTER 7.
8 Section 902. Severability.
9 The provisions of this act are severable. If any provision of
10 this act or its application to any person or circumstance is
11 held invalid, the invalidity shall not affect other provisions
12 or applications of this act which can be given effect without
13 the invalid provision or application.
14 Section 903. Repeals.
15 (a) Inflation dividends.--The act of March 11, 1971
16 (P.L.104, No.3), known as the Senior Citizens Rebate and
17 Assistance Act, reenacted and amended December 21, 1979
18 (P.L.570, No.131), is repealed insofar as it relates to
19 inflation dividends.
20 (b) Specific repeals.--The following acts and parts of acts
21 are repealed:
22 (1) The following provisions of the act of January 22,
23 1968 (P.L.42, No.8), known as the Pennsylvania Urban Mass
24 Transportation Law:
25 (i) The definition of "Shared ride public
26 transportation services" in section 202.
27 (ii) Section 203(5).
28 (2) The act of November 4, 1983 (P.L.217, No.63), known
29 as the Pharmaceutical Assistance Contract for the Elderly
30 Act.
19910H1470B2277 - 36 -
1 (3) Section THE LAST THREE SENTENCES OF SECTION <--
2 1901(c)(16) of Title 75 of the Pennsylvania Consolidated
3 Statutes.
4 (c) Inconsistent repeals.--All acts and parts of acts are
5 repealed insofar as they are inconsistent with this act.
6 Section 904. Applicability.
7 (a) Prudent pharmaceutical purchasing.--The rebate <--
8 provisions of Chapter 5 shall apply retroactively to April 1,
9 1991.
10 (b) Vehicle registration.--Section 903(b)(3) shall apply to <--
11 all new registrations and registration renewals having an
12 effective date after June 30, 1991.
13 Section 905. Effective date.
14 This act shall take effect immediately.
E13L72VDL/19910H1470B2277 - 37 -