Journal of the House

First Extraordinary Session, 91st General Assembly

FOURTH DAY, Monday, September 10, 2001

Speaker Kreider in the Chair.

Prayer by Father David Buescher.

Dear God, the challenge of this special session needs divine perspective. We pray for that. We count on that. There are so many difficult decisions to be made and important votes to be cast in these few days. The list is long, the issues thorny. We now pause for this brief moment, and try to sense how near You really are. May we then enthusiastically go on to the tasks at hand, pregnant with Your compassionate wisdom, motivated by Your direction, and moved by Your strength. Amen.

The Pledge of Allegiance to the flag was recited.

The Journals of the first day and second day were approved as corrected, and the Journal of the third day was approved as printed.

Representative Crump suggested the absence of a quorum.

The following roll call indicated a quorum present:

PERFECTION OF HOUSE BILLS

HCS HB 3, relating to the Pharmaceutical Investment Program, was taken up by Representative Abel.

Representative Abel moved that Rule 49(d) be suspended for the purpose of offering HS HCS HB 3.

Which motion was adopted by the following vote:

Representative Abel offered HS HCS HB 3.

Representative Abel offered House Amendment No. 1.

AMEND House Substitute for House Committee Substitute for House Bill No. 3, Page 26, Section 208.550, Lines 2-7, by deleting all of said lines; and

Further amend said bill, page and section, Lines 21-24, by deleting all of said lines and delete Line 1 on Page 27.

On motion of Representative Abel, House Amendment No. 1 was adopted.

Representative Abel offered House Amendment No. 2.

House Amendment No. 2 was withdrawn.

Representative Abel offered House Amendment No. 2.

AMEND House Substitute for House Committee Substitute for House Bill No. 3, Page 31, Section 208.556, Line 19, by inserting at the end of said line the following:

"Individuals who have benefits with an actuarial value greater than or equal to the benefits in the program are not eligible for the program.".

On motion of Representative Abel, House Amendment No. 2 was adopted.

Representative Naeger offered House Amendment No. 3.

AMEND House Substitute for House Committee Substitute for House Bill No. 3, Page 30, Section 208.556, Line 11, by inserting the following:

"; except that the Commission shall either administer the rebate program established in Section 208.565 or contract with the Division of Medical Services for the rebate program established in Section 208.565"; and

Further amend said bill, Page 36, Section 208.562, Line 23, by deleting the word "cost" and inserting in lieu thereof the following: "price"; and

Further amend said bill, Page 37, Section 208.562, Line 2, by deleting the word "cost" and inserting in lieu thereof the following: "price"; and

Further amend said bill, Page 37, Section 208.565, by deleting all of said section and replacing it with the following:

"208.565. 1. As used in sections 208.565, the following terms mean:

(a) "Direct seller", any person, partnership, corporation, institution or entity engaged in the selling of pharmaceutical products directly to consumers in this state;

(b) "Distributor", a private entity under contract with the original labeler or holder of the national code number to manufacture, package or market the covered prescription drug;

(c) "FDA", the Food and Drug Administration of the Public Health Services of the Department of Health and Human Services;

(d) "Manufacturer", shall include:

(1) An entity which is engaged in any of the following:

a. The production, preparation, propagation, compounding, conversion or processing of prescription drug products:

(i) Directly or indirectly by extraction from substances of natural origin;

(ii) Independently by means of chemical synthesis; or

(iii) By a combination of extraction and chemical synthesis;

b. The packaging, repackaging, labeling or relabeling, or distribution of prescription drug products;

(b) The entity holding legal title to or possession of the national drug code number for the covered prescription drug;

(c) The term does not include a wholesale distributor of drugs, drugstore chain organization or retail pharmacy licensed by the state;

(e) "Unit", a drug unit in the lowest identifiable amount, such as tablet or capsule for solid dosage forms, milliliter for liquid forms and gram for ointments or creams. The manufacturer shall specify the unit for each dosage form and strength of each covered prescription drug in accordance with the instructions developed by the Center for Medicare and Medicaid Services (CMS) for purposes of the Federal Medicaid Rebate Program under section 1927 of Title XIX of the Social Security Act (49 Stat. 620, 42 U.S.C. section 301 et seq.);

(f) "Wholesaler", any person, partnership, corporation, institution or entity to which the manufacturer sells the covered prescription drug, including a pharmacy or chain of pharmacies.

(g) "National drug code number", the identifying drug number maintained by the FDA. The complete eleven-digit number must include the labeler code, product code and package size code;

(h) "New drug", a covered prescription drug approved as a new drug under section 201(p) of the Federal Food, Drug, and Cosmetic Act (52 Stat. 1040, 21 U.S.C. S 321(p));

2. The division shall issue a certificate of participation to pharmaceutical manufacturers participating in the PIPS. 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.

3. The division shall negotiate with participating manufacturers for the amount of rebates. The rebate amount for each unit dispensed of brand name drug shall be no less than fifteen percent of the average manufacturers' price as defined pursuant to 42 U.S.C. 1396r-8(k)(1). No other discounts shall apply. The rebate amount for each unit dispensed of generic drug shall be no less than eleven percent. No other discounts shall apply. In order to receive a certificate of participation a manufacturer or distributor participating in the PIPS shall provide the division of aging 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:

(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 pursuant to section 208.565 is confidential and shall not be disclosed by the division 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 for rebate administration.

4. 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.

5. Any prescription drug of a manufacturer that does not participate in the program shall not be paid for by the program."; and

Further amend the title, enacting clause and intersectional references accordingly.

On motion of Representative Naeger, House Amendment No. 3 was adopted.

Representative Naeger offered House Amendment No. 4.

AMEND House Substitute for House Committee Substitute for House Bill No. 3, Page 6, Section 208.010, Lines 6-12, by deleting all of said lines and inserting the following:

"(4) Owns or possesses resources in the sum of :

(a) Prior to July 1, 2002, one thousand dollars or more; provided, however, that if such a person is married and living with spouse, he or she, or they, individually or jointly, may own resources not to exceed two thousand dollars;

(b) On July 1, 2002 and thereafter, one thousand five hundred dollars; provided, however, that if such person is married and living with a spouse, he or she, or they, individually or jointly, may own resources not to exceed two thousand five hundred dollars;

and provided further that in the case of a temporary assistance for needy families claimant, the provision of this subsection shall not apply;"; and

Further amend said bill, Page 22, Section 208.151, Line 16, by inserting after the word "level" the following: "on July 1, 2002.".

Representative Hosmer offered House Substitute Amendment No. 1 for House Amendment No. 4.

House Substitute Amendment No. 1

AMEND House Substitute for House Committee Substitute for House Bill No. 3, Page 6, Section 208.010, Lines 6-12, by deleting all of said lines and inserting the following:

"(4) Owns or possesses resources in the sum of :

(a) Prior to July 1, 2002, one thousand dollars or more; provided, however, that if such a person is married and living with spouse, he or she, or they, individually or jointly, may own resources not to exceed two thousand dollars;

(b) On July 1, 2002 and thereafter, two thousand five hundred dollars; provided, however, that if such person is married and living with a spouse, he or she, or they, individually or jointly, may own resources not to exceed four thousand five hundred dollars;

and provided further that in the case of a temporary assistance for needy families claimant, the provision of this subsection shall not apply;"; and

Further amend said bill, Page 22, Section 208.151, Line 16, by inserting after the word "level" the following:

"on July 1, 2002.".

On motion of Representative Hosmer, House Substitute Amendment No. 1 for House Amendment No. 4 was adopted by the following vote:

Representative Smith assumed the Chair.

Representative Portwood offered House Amendment No. 5.

AMEND House Substitute for House Committee Substitute for House Bill No. 3, Page 33, Section 208.556, Lines 7-11, by deleting all of said lines.

On motion of Representative Portwood, House Amendment No. 5 was adopted.

Representative Reid offered House Amendment No. 6.

AMEND House Substitute for House Committee Substitute for House Bill No. 3, Page 36, Section 208.559, Line 2 of said page, by inserting after the year "2002." the following:

"A second initial enrollment period shall be held from November 1, 2002, through December 15, 2002, to allow persons who did not enroll during the April through May 2002 enrollment period to enroll with the program for calendar year 2003. Current enrollees in the program shall not be required to reenroll during the second initial enrollment period for calendar year 2003."; and

Further amend said title, enacting clause and intersectional references accordingly.

On motion of Representative Reid, House Amendment No. 6 was adopted by the following vote:

Representative Holand offered House Amendment No. 7.

AMEND House Substitute for House Committee Substitute for House Bill No. 3, Page 31, Section 208.556, Lines 3 through 5, by deleting all of said lines and inserting in lieu thereof the following:

"subsection 4 of this section, and who has a household income at or below twelve thousand dollars for an individual or seventeen thousand dollars for a married couple is eligible to"; and

Further amend said bill, Page 32, Section 208.556, Lines 8 through 13, by deleting all of said lines and inserting in lieu thereof the following: " five dollar enrollment fee to offset the administrative costs of the program."; and

Further amend said bill, Page 33, Section 208.556, Lines 1 through 6, by deleting all of said lines and inserting in lieu thereof the following:

"(3) A catastrophic prescription benefit is also hereby established. Eligibility shall be limited to the following:

1. Persons over the age of sixty-five years,

2. Who have documented prescription drug costs exceeding twenty-five percent of their documented annual household income, as defined in section 208.550, on a quarterly basis. The individual's annual household income minus the amount expended on prescription drugs must be equal to or less than the limit required to qualify for participation in the program, pursuant to section 208.556

3. Eligibility for the catastrophic prescription benefit may be renewed quarterly, consistent with these qualifications."; and

Further amend said title, enacting clause and intersectional references accordingly.

Representative Portwood offered House Substitute Amendment No. 1 for House Amendment No. 7.

AMEND House Substitute for House Committee Substitute for House Bill No. 3, Page 32, Section 208.556, Line 13, by inserting the following:

"Any senior in the state of Missouri may enroll in the program. After exceeding 25% of their annual household income or prescription drugs as a deductible, a senior may qualify for the program during a program year when their household income as defined in Section 135.010, RSMo, minus the amount expended on prescription drugs is equal to or less than the limit required to qualify for participation in the program pursuant to Section 208.556.".

Representative Portwood moved that House Substitute Amendment No. 1 for House Amendment No. 7 be adopted.

Which motion was defeated by the following vote:

House Amendment No. 7 was withdrawn.

Representative Levin offered House Amendment No. 8.

Representative Foley raised a point of order that House Amendment No. 8 goes beyond the scope of the bill.

Representative Smith requested a parliamentary ruling.

The Parliamentary Committee ruled the point of order well taken.

Representative Marble offered House Amendment No. 8.

AMEND House Substitute for House Committee Substitute for House Bill No. 3, Page 32, Section 208.556, Line 17, by inserting before the word "deductible" the word "annual" on said line.

On motion of Representative Marble, House Amendment No. 8 was adopted.

On motion of Representative Abel, HS HCS HB 3, as amended, was adopted.

On motion of Representative Abel, HS HCS HB 3, as amended, was ordered perfected and printed.

HCS HBs 5, 1 & 2, relating to federal income tax deduction, was taken up by Representative Kennedy.

Representative Kennedy moved that Rule 49(d) be suspended for the purpose of offering HS HCS HBs 5, 1 & 2.

Which motion was adopted by the following vote:

Representative Kennedy offered HS HCS HBs 5, 1 & 2.

On motion of Representative Kennedy, HS HCS HBs 5, 1 & 2 was adopted.

On motion of Representative Kennedy, HS HCS HBs 5, 1 & 2 was ordered perfected and printed.

On motion of Representative Crump, the House recessed until 8:00 p.m.

The hour of recess having expired, the House was called to order by Speaker Kreider.

Committee on Rules, Joint Rules, and Bills Perfected and Printed, Chairman Crump reporting:

Mr. Speaker: Your Committee on Rules, Joint Rules, and Bills Perfected and Printed, to which was referred HS HCS HB 3 and HS HCS HBs 5, 1 & 2, begs leave to report it has examined the same and finds them to be truly perfected and that the printed copies thereof furnished the members are correct.

The following House Bills were referred to the Committee indicated:

HS HCS HB 3 - Fiscal Review and Government Reform (Fiscal Note)

HS HCS HBs 5, 1 & 2 - Fiscal Review and Government Reform (Fiscal Note)

COMMITTEE REPORTS

Committee on Fiscal Review and Government Reform, Chairman Hollingsworth reporting:

Mr. Speaker: Your Committee on Fiscal Review and Government Reform, to which was referred HS HCS HB 3 (Fiscal Note), begs leave to report it has examined the same and recommends that it Do Pass.

Mr. Speaker: Your Committee on Fiscal Review and Government Reform, to which was referred HS HCS HBs 5, 1 & 2 (Fiscal Note), begs leave to report it has examined the same and recommends that it Do Pass.

PERFECTION OF HOUSE BILL

HCS HB 4, relating to livestock marketing, was taken up by Representative Shoemyer.

Representative Shoemyer moved that Rule 49(d) be suspended for the purpose of offering HS HCS HB 4.

Which motion was adopted by the following vote:

Representative Shoemyer offered HS HCS HB 4.

On motion of Representative Shoemyer, HS HCS HB 4 was adopted.

On motion of Representative Shoemyer, HS HCS HB 4 was ordered perfected and printed.

COMMITTEE REPORT

Committee on Rules, Joint Rules, and Bills Perfected and Printed, Chairman Crump reporting:

Mr. Speaker: Your Committee on Rules, Joint Rules, and Bills Perfected and Printed, to which was referred HS HCS HB 4, begs leave to report it has examined the same and finds it to be truly perfected and that the printed copies thereof furnished the members are correct.

Representative Monaco assumed the Chair.

THIRD READING OF HOUSE BILLS

HS HCS HB 3, relating to the Pharmaceutical Investment Program, was taken up by Representative Abel.

On motion of Representative Abel, HS HCS HB 3 was read the third time and passed by the following vote:

Representative Monaco declared the bill passed.

The emergency clause was adopted by the following vote:

HS HCS HBs 5, 1 & 2, relating to federal income tax deduction, was taken up by Representative Kennedy.

On motion of Representative Kennedy, HS HCS HBs 5, 1 & 2 was read the third time and passed by the following vote:

Representative Monaco declared the bill passed.

The emergency clause was adopted by the following vote:

HS HCS HB 4, relating to livestock marketing, was taken up by Representative Shoemyer.

On motion of Representative Shoemyer, HS HCS HB 4 was read the third time and passed by the following vote:

Representative Monaco declared the bill passed.

The emergency clause was adopted by the following vote:

MESSAGES FROM THE SENATE

Mr. Speaker: I am instructed by the Senate to inform the House of Representatives that the Senate has taken up and passed SB 2, entitled:

An act to repeal sections 277.203 and 277.212, RSMo, relating to livestock packers, and to enact in lieu thereof three new sections relating to the same subject, with an emergency clause.

Emergency clause adopted.

In which the concurrence of the House is respectfully requested.

Mr. Speaker: I am instructed by the Senate to inform the House of Representatives that the Senate has taken up and passed SCS SBs 3, 8 & 9, entitled:

An act relating to individual income tax treatment of federal credit or advance refund of federal credit allowed to individual taxpayers under section 6428 of the Internal Revenue Code for tax year 2001, with an emergency clause.

Emergency clause adopted.

In which the concurrence of the House is respectfully requested.

Mr. Speaker: I am instructed by the Senate to inform the House of Representatives that the Senate has taken up and passed SCS SBs 4, 1, 5 & 6, entitled:

An act to repeal sections 135.095, 208.010 and 208.151, RSMo, relating to medical assistance for the elderly, and to enact in lieu thereof twelve new sections relating to the same subject, with a contingent effective date for a certain section, an expiration date and an emergency clause.

In which the concurrence of the House is respectfully requested.

ADJOURNMENT

On motion of Representative Crump, the House adjourned until 10:00 a.m., Tuesday, September 11, 2001.

CORRECTIONS TO THE HOUSE JOURNAL

Correct House Journal, First Day, Wednesday, September 5, 2001, page 6, line 6, by inserting at the end of said line the name "Legan".

Correct House Journal Second Day, Thursday, September 6, 2001, page 9, line 13, by inserting at the end of said line the names "Moore and Portwood".

APPROPRIATIONS - TRANSPORTATION

Thursday, September 13, 2001, 9:00 am. Hearing Room 4.

To get information from MODOT regarding personnel and safety.

CHILDREN, FAMILIES, AND HEALTH

Tuesday, September 11, 2001, 11:30 am. Hearing Room 5.

Executive Session will follow.

To be considered - SB 4

JOINT COMMITTEE ON ADMINISTRATIVE RULES

Thursday, September 13, 2001, 8:30 am. Senate Committee Room 2.

13CSR 40-60.010 and 050. 11 CSR 40-5.065.

JOINT COMMITTEE ON ECONOMIC DEVELOPMENT

Tuesday, September 11, 2001, 8:00 am. Hearing Room 5. Enterprise Zones.

Milan in Sullivan County, Butler in Bates County.

Presentation by J. Driskill.

Executive Session.

JOINT COMMITTEE ON LEGISLATIVE RESEARCH

Wednesday, September 12, 2001, 9:00 am. Hearing Room 1. Agenda.

Set price for the 2001 Supplements to the Revised Statutes. Oversight interim report.

JOINT COMMITTEE ON PUBLIC EMPLOYEE RETIREMENT

Thursday, September 13, 2001, 8:30 am. Hearing Room 1.

Full committee meeting. County Employees' Retirement Fund.

Subcommittee immediately following.

SPECIAL COMMITTEE ON PRICE DISCRIMINATION

Tuesday, September 11, 2001, 1:30 pm. Hearing Room 1.

Executive Session may follow.

To be considered - SB 2

SUBCOMMITTEE ON APPROPRIATIONS - EDUCATION

Wednesday, September 12, 2001, 8:00 am. Hearing Room 4.

Presentation University of Missouri - Rolla.

SUBCOMMITTEE ON PROFESSIONAL REGISTRATION & LICENSING

Wednesday, September 12, 2001, 8:00 am. Hearing Room 7.

Chapter 273 - Pet breeding regulations.

WAYS AND MEANS

Tuesday, September 11, 2001, 10:30 am. Hearing Room 7. AMENDED.

Executive Session will follow.

To be considered - SB 3

SENATE BILLS FOR SECOND READING

SB 2

SCS SB 3, 8 & 9

SCS SB 4, 1, 5 & 6