Assembly Bill No. 543–Committee on
Health and Human Services

 

(On Behalf of Task Force for the Fund for a Healthy Nevada)

 

March 22, 2001

____________

 

Referred to Committee on Health and Human Services

 

SUMMARY—Creates advisory committee to oversee subsidies for provision of prescription drugs and pharmaceutical services. (BDR 40‑824)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to the administration of public health; creating an advisory committee to oversee subsidies for the provision of prescription drugs and pharmaceutical services; setting forth the duties of that committee; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1    Section 1. Chapter 439 of NRS is hereby amended by adding thereto

1-2  the provisions set forth as sections 2, 3 and 4 of this act.

1-3    Sec. 2.  As used NRS 439.620, 439.625, 439.630 and sections 2, 3 and

1-4  4 of this act, unless the context otherwise requires, “committee” means

1-5  the advisory committee to oversee subsidies for the provision of

1-6  prescription drugs and pharmaceutical services created pursuant to

1-7  section 3 of this act.

1-8    Sec. 3.  1.  The advisory committee to oversee subsidies for the

1-9  provision of prescription drugs and pharmaceutical services is hereby

1-10  created.

1-11    2.  The committee consists of 13 members as follows:

1-12    (a) One member of the senate appointed by the majority leader of the

1-13  senate.

1-14    (b) One member of the assembly appointed by the speaker of the

1-15  assembly.

1-16    (c) Four persons appointed by the majority leader of the senate as

1-17  follows:

2-1       (1) One person who is a resident of this state and who is 62 years of

2-2  age or older.

2-3       (2) One person who is a pharmacist licensed to practice in this

2-4  state, from a list of nominees submitted by the state board of pharmacy.

2-5       (3) One person who has experience in the field of health insurance.

2-6       (4) One person who is a represents the American Association of

2-7  Retired Persons or its successor organization.

2-8    (d) Four persons appointed by the speaker of the assembly as follows:

2-9       (1) One person who is a resident of this state and who is 62 years of

2-10  age or older.

2-11      (2) One person who has experience as an advocate for the rights of

2-12  persons with disabilities.

2-13      (3) One person who has experience as an advocate for the rights of

2-14  consumers.

2-15      (4) One person who is a physician licensed to practice medicine in

2-16  this state, from a list of nominees submitted by the board of medical

2-17  examiners.

2-18    (e) Three persons appointed by the governor as follows:

2-19      (1) One person who has at least 5 years’ experience in a high-level

2-20  administrative or executive capacity managing the pharmaceutical

2-21  portion of an employee’s benefit plan or any other plan that provides

2-22  coverage for prescription drugs and pharmaceutical services.

2-23      (2) One person who has at least 5 years’ experience in a high-level

2-24  administrative or executive capacity in the pharmaceutical industry.

2-25      (3) One person who is a representative of the general public.

2-26    3.  Each member of the committee serves for a term of 2 years. A

2-27  vacancy on the committee must be filled in the same manner as the

2-28  original appointment. A member may be reappointed to the committee.

2-29    4.  The members of the committee shall, by majority vote, elect a

2-30  chairman and vice chairman from among their members. After the initial

2-31  election, the chairman and vice chairman shall serve at the pleasure of

2-32  the committee. If a vacancy occurs in the chairmanship or vice

2-33  chairmanship, the members of the committee shall, by majority vote, elect

2-34  a chairman or vice chairman, as appropriate, from among their

2-35  members.

2-36    5.  The committee shall meet at least once each calendar quarter, and

2-37  at the call of the chairman or upon the written request of a majority of

2-38  the members of the committee. Any seven members of the committee

2-39  constitute a quorum for the purpose of voting. Except as otherwise

2-40  provided in this subsection, a majority vote of the quorum is required to

2-41  take action with respect to any matter. The affirmative vote of three or

2-42  more members of the committee is sufficient to place an item on the

2-43  agenda for a meeting of the committee.

2-44    6.  For each day or portion of a day during which a member of the

2-45  committee who is a legislator attends a meeting of the committee or is

2-46  otherwise engaged in the work of the committee, except during a regular

2-47  or special session of the legislature, he is entitled to receive the:

2-48    (a) Compensation provided for a majority of the members of the

2-49  legislature during the first 60 days of the preceding session;

3-1    (b) Per diem allowance provided for state officers and employees

3-2  generally; and

3-3    (c) Travel expenses provided pursuant to NRS 218.2207.

3-4  The compensation, per diem allowances and travel expenses of the

3-5  members of the committee who are legislators must be paid from the

3-6  legislative fund.

3-7    7.  For each day or portion of a day during which a member of the

3-8  committee who is not a legislator attends a meeting of the committee or is

3-9  otherwise engaged in the work of the committee, he is entitled to receive

3-10  the per diem allowance and travel expenses provided for state officers

3-11  and employees generally. The per diem allowances and travel expenses of

3-12  the members of the committee who are not legislators must be paid from

3-13  the fund for a healthy Nevada as an administrative expense of that fund

3-14  pursuant to subsection 4 of NRS 439.620.

3-15    8.  A member of the committee who is an officer or employee of this

3-16  state or a political subdivision of this state must be relieved from his

3-17  duties without loss of his regular compensation so that he may prepare

3-18  for and attend meetings of the committee and perform any work

3-19  necessary to carry out the duties of the committee in the most timely

3-20  manner practicable. A state agency or political subdivision of this state

3-21  shall not require an officer or employee who is a member of the

3-22  committee to:

3-23    (a) Make up the time he is absent from work to carry out his duties as

3-24  a member of the committee; or

3-25    (b) Take annual leave or compensatory time for the absence.

3-26    9.  The director of the department of human resources shall designate

3-27  one or more employees of the department to provide the committee with

3-28  secretarial and administrative support.

3-29    Sec. 4.  1.  The primary duties of the committee are to review,

3-30  oversee and make recommendations concerning the operation of the

3-31  program set forth in NRS 439.635 to 439.690, inclusive.

3-32    2.  In carrying out the duties set forth in subsection 1, the committee

3-33  shall, without limitation:

3-34    (a) Receive public comment regarding the efficacy of the program,

3-35  including, without limitation, complaints regarding the operation of the

3-36  program and suggestions from members of the public regarding ways in

3-37  which the program may be improved;

3-38    (b) Promote, insofar as is practicable, cooperation and consensus

3-39  among state agencies to determine whether and by what specific means

3-40  the cost of prescription drugs and pharmaceutical services offered

3-41  pursuant to the program may be lowered by purchasing in bulk to take

3-42  advantage of economies of scale;

3-43    (c) Review and make recommendations pertaining to any formulary

3-44  or other list that sets forth the prescription drugs and pharmaceutical

3-45  services which are covered under the program;

3-46    (d) Investigate and make recommendations concerning ways in which

3-47  the program may be altered so that the program operates in the most

3-48  efficient and cost-effective manner possible;

4-1    (e) Examine the policies and practices of customer service which are

4-2  carried out pursuant to the program and propose ways in which the

4-3  program should be operated so as to be highly responsive to the needs of

4-4  persons who are enrolled in the program;

4-5    (f) Review and make recommendations concerning the readability,

4-6  usefulness and truthfulness of any informational materials provided

4-7  pursuant to the program to persons who are or may become enrolled in

4-8  the program;

4-9    (g) Monitor similar programs which are conducted in other states so

4-10  that the members of the committee remain informed concerning any new

4-11  developments and ideas which may be useful in making

4-12  recommendations regarding the operation of the program; and

4-13    (h) Take any other actions that the committee determines to be

4-14  necessary in carrying out its functions of overseeing, reviewing and

4-15  making recommendations concerning the operation of the program.

4-16    3.  At least once each year on or before January 15, the committee

4-17  shall report its findings, recommendations and other proposals to:

4-18    (a) The governor;

4-19    (b) The task force for the fund for a healthy Nevada; and

4-20    (c) The director of the legislative counsel bureau for transmittal to the

4-21  senate standing committee on human resources and facilities and

4-22  assembly standing committee on health and human services during a

4-23  regular or special session of the legislature, and the interim finance

4-24  committee when the legislature is not in session.

4-25    Sec. 5.  NRS 439.620 is hereby amended to read as follows:

4-26    439.620  1.  The fund for a healthy Nevada is hereby created in the

4-27  state treasury. The state treasurer shall deposit in the fund:

4-28    (a) Fifty percent of all money received by this state pursuant to any

4-29  settlement entered into by the State of Nevada and a manufacturer of

4-30  tobacco products; and

4-31    (b) Fifty percent of all money recovered by this state from a judgment

4-32  in a civil action against a manufacturer of tobacco products.

4-33    2.  The state treasurer shall administer the fund. As administrator of the

4-34  fund, the state treasurer:

4-35    (a) Shall maintain the financial records of the fund;

4-36    (b) Shall invest the money in the fund as the money in other state funds

4-37  is invested;

4-38    (c) Shall manage any account associated with the fund;

4-39    (d) Shall maintain any instruments that evidence investments made with

4-40  the money in the fund;

4-41    (e) May contract with vendors for any good or service that is necessary

4-42  to carry out the provisions of this section; and

4-43    (f) May perform any other duties necessary to administer the fund.

4-44    3.  The interest and income earned on the money in the fund must, after

4-45  deducting any applicable charges, be credited to the fund. All claims

4-46  against the fund must be paid as other claims against the state are paid.

4-47    4.  Not more than 2 percent of the money in the fund may be used to

4-48  pay the costs of administering the fund.

5-1    5.  The money in the fund remains in the fund and does not revert to the

5-2  state general fund at the end of any fiscal year.

5-3    6.  All money that is deposited or paid into the fund is hereby

5-4  appropriated to the department and, except as otherwise provided in

5-5  [paragraphs] :

5-6    (a) Paragraphs (c) and (d) of subsection 1 of NRS 439.630[,] ; and

5-7    (b) Subsection 7 of section 3 of this act,

5-8  may only be expended pursuant to an allocation made by the task force for

5-9  the fund for a healthy Nevada. Money expended from the fund for a

5-10  healthy Nevada must not be used to supplant existing methods of funding

5-11  that are available to public agencies.

5-12    Sec. 6.  As soon as practicable after July 1, 2001, the governor, the

5-13  majority leader of the senate and the speaker of the assembly shall,

5-14  pursuant to section 3 of this act, appoint the members of the advisory

5-15  committee to oversee subsidies for the provision of prescription drugs and

5-16  pharmaceutical services.

5-17    Sec. 7.  This act becomes effective on July 1, 2001.

 

5-18  H