093_HB2850

 
                                     LRB093 09864 DRJ 10112 b

 1        AN ACT in relation to aging.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The State Finance Act is  amended  by  adding
 5    Section 5.595 as follows:

 6        (30 ILCS 105/5.595 new)
 7        Sec. 5.595.  The Prescription Drug Assistance Fund.

 8        Section  10.  The  Senior  Citizens  and Disabled Persons
 9    Property Tax Relief  and  Pharmaceutical  Assistance  Act  is
10    amended  by  changing  Section 3.15 and adding Section 4.5 as
11    follows:

12        (320 ILCS 25/3.15) (from Ch. 67 1/2, par. 403.15)
13        Sec. 3.15.  "Covered prescription  drug"  means  (1)  any
14    cardiovascular  agent  or  drug;  (2)  any  insulin  or other
15    prescription  drug  used  in  the  treatment   of   diabetes,
16    including syringe and needles used to administer the insulin;
17    (3) any prescription drug used in the treatment of arthritis,
18    (4)  beginning on January 1, 2001, any prescription drug used
19    in the treatment of cancer, (5) beginning on January 1, 2001,
20    any prescription drug used in the  treatment  of  Alzheimer's
21    disease,  (6)  beginning on January 1, 2001, any prescription
22    drug used  in  the  treatment  of  Parkinson's  disease,  (7)
23    beginning  on  January 1, 2001, any prescription drug used in
24    the treatment of glaucoma, (8) beginning on January 1,  2001,
25    any  prescription  drug used in the treatment of lung disease
26    and smoking related illnesses, and (9) beginning on  July  1,
27    2001,   any  prescription  drug  used  in  the  treatment  of
28    osteoporosis.  The specific agents or products to be included
29    under such categories shall be listed in  a  handbook  to  be
 
                            -2-      LRB093 09864 DRJ 10112 b
 1    prepared  and  distributed  by  the  Department.  The general
 2    types of covered prescription drugs  shall  be  indicated  by
 3    rule.    Beginning July 1, 2004, the Department shall by rule
 4    expand the classes of drugs covered beyond those  covered  as
 5    of  January  1,  2003,  subject  to  appropriations  from the
 6    Prescription Drug Assistance Fund.
 7    (Source: P.A.  91-699,  eff.  1-1-01;  92-10,  eff.  6-11-01;
 8    92-790, eff. 8-6-02.)

 9        (320 ILCS 25/4.5 new)
10        Sec. 4.5.  Drug manufacturer rebate agreements.
11        (a)  In  this  Section,  "drug  manufacturer"  means  any
12    entity that:
13             (1)  is  located  within or outside Illinois that is
14        engaged in:
15                  (A)  the production, preparation,  propagation,
16             compounding,    conversion,    or    processing   of
17             prescription  drug  products   covered   under   the
18             Program, either directly or indirectly by extraction
19             from  substances of natural origin, independently by
20             means of chemical synthesis, or by a combination  of
21             extraction and chemical synthesis; or
22                  (B)  the   packaging,   repackaging,  leveling,
23             labeling,  or  distribution  of  prescription   drug
24             products covered under the program of pharmaceutical
25             assistance; and
26             (2)  elects  to  provide  prescription  drugs either
27        directly or under  contract  with  any  entity  providing
28        prescription  drug  services  on  behalf  of the State of
29        Illinois.
30        "Drug  manufacturer"  does  not,   however,   include   a
31    wholesale  distributor of drugs or a retail pharmacy licensed
32    under Illinois law.
33        (b)  The Department or  its  agent  shall  negotiate  and
 
                            -3-      LRB093 09864 DRJ 10112 b
 1    enter  into  rebate  agreements  with  drug  manufacturers to
 2    provide for rebates in excess of those received by the  State
 3    as  a  result  of  contracts with third parties on January 1,
 4    2003. All rebates received pursuant to this Section or  as  a
 5    result  of  contractual agreements with any third party shall
 6    be deposited into  the  Prescription  Drug  Assistance  Fund,
 7    which  is  created  as  a special fund in the State Treasury.
 8    Other moneys received for the fund  from  any  other  sources
 9    shall  also  be  deposited  into the fund. Interest earned on
10    moneys in the fund shall be credited to the fund.  Moneys  in
11    the  fund  shall be used, subject to appropriation, to expand
12    the  classes  of  drugs  covered   under   the   program   of
13    pharmaceutical  assistance beyond those covered as of January
14    1, 2003.

15        Section 99.  Effective date.  This Act takes effect  upon
16    becoming law.