1169S.18F

To repeal section 208.565, RSMo, and to enact in lieu thereof two new sections relating to stabilization of income for the elderly, with an emergency clause and an effective date for a certain section.

Section A. Section 208.565, RSMo, is repealed and two new sections enacted in lieu thereof, to be known as sections 137.106 and 208.565, to read as follows:

137.106. 1. This section may be known and may be cited as "The Missouri Homestead Preservation Act".

2. As used in this section, the following terms shall mean:

(1) "Eligible owner", any individual owner of property who is permanently disabled or who is sixty-five years old or older as of January first of any taxable year, and who had an income of equal to or less than the maximum upper limit in the prior taxable year; in the case of a married couple owning property either jointly or as tenants by the entirety, or where only one spouse owns the property, such couple shall be considered an eligible taxpayer if both spouses have reached the age of sixty-five or if one spouse is disabled as of January first of any taxable year, and the combined income of the couple in the prior taxable year did not exceed twice the maximum upper limit;

(2) "Homestead", as such term is defined pursuant to section 135.010, RSMo, except as limited by provisions of this section to the contrary;

(3) "Maximum upper limit", in the calendar year 2004, the gross income sum of twenty-five thousand dollars; in each successive calendar year this amount shall be raised by the incremental increase in the general price level, as defined pursuant to article X, section 17 of the Missouri Constitution;

(4) "Permanently disabled", the permanent and total incapacitation from performing any work, occupation, or vocation of any kind whatsoever;

(5) "Property tax due", the actual aggregate property tax liability attributed to an eligible owner of a homestead, excluding:

(a) Increases due to new construction or improvements;

(b) Increases due to any voter approved new or modified tax levy; and

(c) Increases due to a change to the assessed valuation as a result of the property being sold, devised, or otherwise changing ownership.

3. Pursuant to article X, section 6(a) of the Constitution of Missouri, if any taxing jurisdiction, or aggregation of taxing jurisdictions, shall increase the amount of property tax due by any eligible owner on any parcel of subclass (1) real property by more than five percent as a result of an assessment conducted pursuant to subsection 1 of section 137.115, then the taxing authority shall exempt a portion of the assessed valuation of the property such that the tax due by the eligible owner of the homestead does not exceed a five percent increase in the amount of tax due by the eligible owner of the homestead per annual assessment period. The corresponding amount of tax liability exempted shall be listed separately on each taxpayer's tax bill.

4. Notwithstanding other provisions of law, any eligible owner or governing body of a taxing jurisdiction shall have standing to bring suit in a circuit court of proper venue to enforce the provisions of this section, and, if the suit is sustained, shall receive from the applicable unit of government his or her costs, including reasonable attorneys' fees incurred in maintaining such suit.

5. For purposes of determining the limitation on indebtedness of local government pursuant to article VI, section 26(b) of the Missouri Constitution, in any political subdivision where any taxpayer qualifies for the homestead exemption provided in this section, the actual current equalized assessed value of the property notwithstanding any exception allowed pursuant to this section shall be included in the value of taxable tangible property as shown on the last completed assessment for state or county purposes.

6. The county assessor shall include the actual current equalized assessed value as described in subsection 5 of this section of all property within the taxing district in the aggregate valuation of assessed property entered upon the assessor's book and verified pursuant to section 137.245, and such value shall be utilized for the purpose of the debt limitation on local government pursuant to article VI, section 26(b) of the Missouri Constitution;

7. No person claiming a homestead exemption pursuant to this section shall be eligible to claim the property tax credit allowed in sections 135.010 to 135.035, RSMo, and no person claiming the property tax credit allowed in sections 135.010 to 135.035, RSMo, shall be eligible to claim the homestead exemption pursuant to this section.

8. Prior to February first of each year, the division of oversight of the joint committee on legislative research shall provide the general assembly with an estimated appropriation necessary to compensate the taxing jurisdictions of this state for revenue that is projected to be lost in the current tax year pursuant to the provisions of this section. In cooperation with the state tax commission, this estimate shall include appropriate data for a pro rata distribution to each taxing jurisdiction of the appropriation authorized in this subsection. If the general assembly shall appropriate the funds pursuant to such estimate during the same regular session as when the estimate is submitted, which appropriation is hereby authorized, then each county and city not within a county shall send verification to the commissioner of the office of administration of the actual appropriation necessary to compensate the taxing jurisdictions of such county for the revenue that is projected to be lost in that tax year, by September first of such year. Following such verification, the commissioner of administration shall credit that portion of the appropriated funds designated for homestead exemption reimbursement to the treasury of each county or city not within a county which is equal to the amount verified by such county or city. If the aggregate sum of verified amounts exceeds the appropriation, then the amount directed to each county shall be reduced pro rata according to the actual amount of revenue verified by such county or city not within a county. If the actual amount deposited in the treasury of a county or a city not with a county is less than the verified amount submitted by such city or county, then the collector shall apply all available revenue pro rata based on tax liability to each eligible taxpayer meeting the requirements of subsections 1 to 7 of this section. Where a taxing jurisdiction lies in more than one county, the taxing jurisdiction shall be deemed to be in the jurisdiction where the majority of its land area is located for the purposes of this subsection. If, for any given year, no appropriation is made for the purpose of homestead exemption reimbursement, than no homestead exemption shall be available in such year.

9. Determination of eligibility for the homestead exemption provided in this section regarding both the status of the owner and the status of property shall be made as of January 1 of each year. This section shall become effective January 1, 2005, and shall apply to all taxable years beginning after December 31, 2004, and shall only apply to first class and charter counties and cities not within a county.

10. The state tax commission shall promulgate rules for implementation of this section. Any rule or portion of a rule, as that term is defined in section 536.010, RSMo, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536, RSMo, and, if applicable, section 536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536, RSMo, to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2003, shall be invalid and void.

208.565. 1. The [division] department of health and senior services shall negotiate with manufacturers for participation in the program. The [division] department of health and senior services shall issue a certificate of participation to pharmaceutical manufacturers participating in the Missouri Senior Rx program. A pharmaceutical manufacturer may apply for participation in the program with an application form prescribed by the commission. A certificate of participation shall remain in effect for an initial period of not less than one year and shall be automatically renewed unless terminated by either the manufacturer or the state with sixty days' notification.

2. For all transactions occurring prior to July 1, 2003, the rebate amount for each drug shall be fifteen percent of the average manufacturer's price as defined in 42 U.S.C. Section 1396r-8(k)(1). For all transactions occurring on and after July 1, 2003, the rebate amount for [each drug] name brand prescription drugs shall be fifteen percent and the rebate amount for generic prescription drugs shall be eleven percent of the average manufacturers' price as defined pursuant to 42 U.S.C. Section 1396r-8(k)(1). No other discounts shall apply. In order to receive a certificate of participation a manufacturer or distributor participating in the Missouri Senior Rx program shall provide the [division of aging] department of health and senior services the average manufacturers' price for their contracted products. The following shall apply to the providing of average manufacturers' price information to the [division of aging] department of health and senior services:

(1) Any manufacturer or distributor with an agreement under this section that knowingly provides false information is subject to a civil penalty in an amount not to exceed one hundred thousand dollars for each provision of false information. Such penalties shall be in addition to other penalties as prescribed by law;

(2) Notwithstanding any other provision of law, information disclosed by manufacturers or wholesalers pursuant to this subsection or under an agreement with the [division] department of health and senior services pursuant to this section is confidential and shall not be disclosed by the [division] department of health and senior services or any other state agency or contractor therein in any form which discloses the identity of a specific manufacturer or wholesaler or prices charged for drugs by such manufacturer or wholesaler, except to permit the state auditor to review the information provided and the [division of medical services] department of health and senior services for rebate administration.

3. All rebates received through the program shall be used toward refunding the program. If a pharmaceutical manufacturer refuses to participate in the rebate program, such refusal shall not affect the manufacturer's status under the current Medicaid program. There shall be no drug formulary, prior approval system, or any similar restriction imposed on the coverage of outpatient drugs made by pharmaceutical manufacturers who have agreements to pay rebates for drugs utilized in the Missouri Senior Rx program, provided that such outpatient drugs were approved by the Food and Drug Administration.

4. Any prescription drug of a manufacturer that does not participate in the program shall not be reimbursable.

Section B. Because immediate action is necessary to ensure the fiscal stability of the Senior Rx program, the repeal and reenactment of section 208.565 of section A of this act is deemed necessary for the immediate preservation of the public health, welfare, peace, and safety, and is hereby declared to be an emergency act within the meaning of the constitution, and the repeal and reenactment of section 208.565 of section A of this act shall be in full force and effect upon its passage and approval.