HB 515

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AN ACT

RELATING TO PRESCRIPTION DRUG COVERAGE; CHANGING THE NAME OF

THE SENIOR PRESCRIPTION DRUG PROGRAM TO THE DISCOUNT

PRESCRIPTION DRUG PROGRAM; REMOVING THE AGE REQUIREMENT;

CHANGING THE NAME OF THE SENIOR PRESCRIPTION DRUG PROGRAM FUND

TO THE DISCOUNT PRESCRIPTION DRUG PROGRAM FUND; AMENDING AND

REPEALING SECTIONS OF THE NMSA 1978.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 10-7C-17 NMSA 1978 (being Laws 2002,

Chapter 75, Section 2 and Laws 2002, Chapter 80, Section 2, as

amended) is amended to read:

"10-7C-17. CREATION OF DISCOUNT PRESCRIPTION DRUG

PROGRAM.--

A. The "discount prescription drug program" is

created in the authority.

B. To be eligible for the discount prescription

drug program, a person shall be a resident of the state.

C. Upon a determination that the person qualifies

for the discount prescription drug program, the authority may

assess an annual administrative fee not to exceed sixty

dollars ($60.00) per year. The authority shall collect the

fees, which shall be used by the authority to cover the cost

of administering the program.

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D. The amount a qualified person pays for a

prescription drug shall not exceed the total cost of the

dispensing fee plus the contracted discounted price made

available to the authority for the prescription drug.

E. The authority shall enroll and provide

participants with electronic or other form of membership

identification for use by pharmacies for each transaction.

F. The authority shall actively promote membership

and benefit information on the discount prescription drug

program to seniors and the general public throughout the

state."

Section 2. Section 10-7C-18 NMSA 1978 (being Laws 2002,

Chapter 75, Section 3 and Laws 2002, Chapter 80, Section 3) is

amended to read:

"10-7C-18. FUND CREATED.--The "discount prescription

drug program fund" is created in the state treasury. All fees

collected pursuant to Subsection C of Section 10-7C-17 NMSA

1978 and all rebates received from drug manufacturers shall be

deposited in the fund and shall be used for the purposes of

the discount prescription drug program. Money appropriated to

the fund or accruing to it through rebates, gifts, grants,

fees or bequests shall be deposited in the fund. Earnings

from investment of the fund shall be credited to the fund.

Money in the fund is appropriated to the authority for the

purpose of administering the discount prescription drug

program. Money in the fund shall not revert at the end of any

fiscal year. Disbursements from the fund shall be made upon

warrants drawn by the secretary of finance and administration

pursuant to vouchers signed by the director of the authority

or the director's authorized representative. The authority

shall annually adjust the enrollment fee to permit necessary

administration of the program but shall not exceed the amount

established in Subsection C of Section 10-7C-17 NMSA 1978."

Section 3. Section 10-7C-19 NMSA 1978 (being Laws 2002,

Chapter 75, Section 4 and Laws 2002, Chapter 80, Section 4) is

amended to read:

"10-7C-19. AUDIT--FEE RECOMMENDATION.--Annually the

legislative finance committee shall conduct a fiscal audit of

the discount prescription drug program fund and the

administration of the program, including rebates negotiated

for the prescription drugs purchased by participants, and

shall recommend if and how much of an annual fee is necessary

for participants in the program."

Section 4. REPEAL.--Section 27-1-15 NMSA 1978 (being

Laws 2005, Chapter 160, Section 1) is repealed. HB 515

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