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COMMITTEE REPORT
March 29, 2006
S. 510
S. Printed 3/29/06--S.
Read the first time February 17, 2005.
To whom was referred a Bill (S. 510) to enact the Budget Proviso Codification Act of 2005, by amending the Code of Laws of South Carolina, 1976, by adding Section 44-6-110 so as to, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
HUGH K. LEATHERMAN, SR. for Committee.
TO ENACT THE BUDGET PROVISO CODIFICATION ACT OF 2005, BY AMENDING THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 44-6-110 SO AS TO PROVIDE THAT MEDICAID RECIPIENTS ARE DEEMED TO HAVE CONSENTED TO GENERIC PRESCRIPTION DRUG SUBSTITUTIONS; BY ADDING SECTIONS 44-6-115, 44-6-118, 44-6-121, AND 44-6-124 SO AS TO PROVIDE FOR EFFECTIVE MEDICAID PHARMACY BENEFIT MANAGEMENT, INCLUDING THE ESTABLISHMENT OF THE PHARMACY AND THERAPEUTICS COMMITTEE, WHICH SHALL RECOMMEND CLASSES OF DRUGS THAT SHOULD BE INCLUDED ON A PREFERRED DRUG LIST AND CRITERIA FOR IMPLEMENTATION OF A PREFERRED DRUG LIST PROGRAM; BY ADDING SECTION 17-3-340 SO AS TO ALLOW THE COMMISSION ON INDIGENT DEFENSE TO CARRY FORWARD UNPAID OBLIGATIONS AND PAY THEM FROM FUNDS APPROPRIATED FOR THE SUCCEEDING FISCAL YEAR; BY ADDING SECTIONS 56-1-545 AND 56-1-550 SO AS TO PROHIBIT THE SALE OF SOCIAL SECURITY NUMBERS BY THE SOUTH CAROLINA DEPARTMENT OF MOTOR VEHICLES AND TO PROVIDE THAT NO FEE IS DUE ON ANNUAL LICENSE PLATE VALIDATION STICKERS FOR PUBLIC LAW ENFORCEMENT VEHICLES; BY ADDING SECTIONS 24-1-295 AND 24-1-300 SO AS TO ALLOW THE SOUTH CAROLINA DEPARTMENT OF CORRECTIONS TO RETAIN CANTEEN OPERATION REVENUES AND, PROVIDE FOR THEIR USE, PROVIDE THAT CANTEEN OPERATIONS MUST BE TREATED AS AN ENTERPRISE FUND, AND TO PROVIDE FOR THE USE OF SOCIAL SECURITY BENEFITS OF INMATES; BY ADDING SECTION 24-21-310 SO AS TO ALLOW THE DEPARTMENT OF PROBATION, PAROLE AND PARDON SERVICES TO SET A PER DAY HOUSING AND FOOD CHARGE FOR THE OPERATION OF RESTITUTION CENTERS; BY ADDING SECTIONS 20-7-6915, 20-7-6920, 20-7-6925, AND 20-7-6930 SO AS TO PROVIDE FOR THE RELEASE FOR GOOD BEHAVIOR OF A CHILD COMMITTED TO THE DEPARTMENT OF JUVENILE JUSTICE, TO ALLOW THIS DEPARTMENT TO PLACE JUVENILES IN MARINE AND WILDERNESS OR OTHER COMMUNITY RESIDENCE PROGRAMS OPERATED BY NONGOVERNMENTAL ENTITIES, TO PROVIDE FOR THE EDUCATION OF JUVENILES COMMITTED TO THAT DEPARTMENT WHO HAVE BEEN ENROLLED IN BUT NOT COMPLETED A GED PROGRAM, TO PROVIDE FOR PAROLE CREDIT FOR TIME SPENT BY A JUVENILE IN A SECURE PRE-DISPOSITIONAL FACILITY; BY ADDING SECTION 11-11-335 SO AS TO PROVIDE FUNDING LEVELS FOR THE PROPERTY TAX RELIEF FUND; BY ADDING SECTIONS 27-18-195, 11-5-290, 11-5-300, AND 11-5-310 SO AS TO PROVIDE THE NOTICE REQUIREMENT FOR THE STATE TREASURER FOR UNCLAIMED PROPERTY, TO ALLOW THE STATE TREASURER TO CHARGE AN INVESTMENT FEE, TO PROVIDE FOR ELECTRONIC QUARTERLY PUBLICATION OF STATE FINANCES, AND TO ALLOW THE STATE TREASURER TO CHARGE THE ACTUAL COSTS OF ADMINISTERING AND MANAGING STATE DEBT; BY ADDING SECTION 11-11-165 SO AS TO ALLOW AGENCIES A PARTIAL CARRY FORWARD OF UNEXPENDED APPROPRIATIONS AND THE OPERATION OF THIS CARRY FORWARD; BY ADDING SECTION 12-37-2738 SO AS TO PROVIDE A ZERO BALANCE IN THE PERSONAL PROPERTY TAX RELIEF FUND AND PROVIDE THROUGH THE PROPERTY TAX RELIEF FUND FOR A SHORTFALL IN REVENUE IN A COUNTY IN WHICH IS IMPOSED THE PERSONAL PROPERTY TAX EXEMPTION SALES TAX, AND TO PROVIDE THAT REFERENCES TO NUMBERED PARAGRAPHS OF TEMPORARY LAWS IN THE GENERAL APPROPRIATIONS ACT ARE FOR IDENTIFICATION PURPOSES ONLY.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. This act may be cited as the Budget Proviso Codification Act of 2005.
A. (8.19) Article 1, Chapter 6, Title 44 of the 1976 Code is amended by adding:
"Section 44-6-110. With respect to prescriptions reimbursed through the South Carolina Medicaid Program, Medicaid recipients for whom the pharmaceuticals are intended are deemed to have consented to substitution of a less costly equivalent generic product that will result in a cost savings to the South Carolina Medicaid program. Accordingly, individual patient consent for substitution as required in Section 40-43-86(H)(6) is not required."
B. (8.41) Article 1, Chapter 6, Title 44 of the 1976 Code is amended by adding:
"Section 44-6-115. (A) There is established within the department the Pharmacy and Therapeutics Committee. The committee must consist of fifteen members appointed by the director and serving at the pleasure of the director. The members must include eleven physicians and four pharmacists licensed to practice in this State and actively engaged in providing services to the South Carolina Medicaid population. The physicians may include, but are not limited to, doctors who have experience in treating diabetes, cancer, HIV/AIDS, mental illness, and hemophilia and who practice in internal medicine, primary care, and pediatrics.
(B) The committee shall adopt by-laws that include, but are not limited to, membership terms. A chairman and vice-chairman must be elected on an annual basis from among the committee membership. Committee members may not be compensated for service on the committee but may be reimbursed for actual and necessary expenses incurred pursuant to discharging committee duties in an amount not to exceed the mileage and subsistence amounts allowed by law for members of boards, commissions, and committees.
(C) The committee shall meet at least quarterly and may meet at other times at the discretion of the chairman or the director. Committee meetings are subject to the provisions of the Freedom of Information Act. The department shall publish notice of regular business meetings of the committee at least thirty days before such meeting. The director or chairman may call special meetings of the committee and provide public notice as may be practical.
(D) The committee shall provide for public comment, including comment on clinical and patient care, data from Medicaid providers, representatives of the pharmaceutical industry, and patient advocacy groups. Trade secrets as defined in state and relevant federal law must not be publicly disclosed.
(E) The committee shall recommend to the department therapeutic classes of drugs that should be included on a preferred drug list. For those recommended classes, the committee must recommend the drug or drugs considered preferred within that class based on safety and efficacy. In determining safety and efficacy, the committee may consider all submitted public comment or clinical information including, but not limited to, scientific evidence, standards of practice, peer-reviewed medical literature, randomized clinical trials, pharmacoeconomic studies, and outcomes research data. The committee also shall recommend prior authorization criteria for nonpreferred drugs in the recommended therapeutic classes.
Section 44-6-118. Any preferred drug list program implemented by the department must include:
(1) procedures to ensure that a request for prior authorization that has no material defect or impropriety can be processed within twenty-four hours of receipt;
(2) procedures to allow the prescribing physician to request and receive notification of any delay or negative decision in regard to a prior authorization request;
(3) procedures to allow the prescribing physician to request and receive a second review of any denial of a prior authorization request; and
(4) procedures to allow a pharmacist to dispense an emergency, seventy-two hour supply of a drug requiring prior authorization without such prior authorization if the pharmacist:
(a) has made a reasonable attempt to contact the prescribing physician and request that the prescribing physician secure prior authorization; and
(b) reasonably believes that refusing to dispense a seventy-two hour supply would unduly burden the Medicaid recipient and produce undesirable health consequences.
Section 44-6-121. A grant of prior authorization for a drug is specific to the drug, rather than the actual prescription, and extends to all refills allowed pursuant to the original prescription and to subsequent prescriptions for the same drug at the same dosage if the time allowed by the prior authorization has not expired.
Section 44-6-124. A Medicaid recipient who has been denied prior authorization for a prescribed drug is entitled to appeal this decision through the department's appeals process."
A. (35.9) Article 3, Chapter 3, Title 17 of the 1976 Code is amended by adding:
"Section 17-3-340. Notwithstanding any other provision of law, the Commission on Indigent Defense may carry forward unpaid obligations incurred and received for payment in one fiscal year and, to the extent possible, pay these obligations from funds appropriated to the agency in the succeeding fiscal year."
A. (36A.7) Article 1, Chapter 1, Title 56 of the 1976 Code is amended by adding:
"Section 56-1-545. The Department of Motor Vehicles may not sell, provide, or otherwise furnish to private parties social security numbers in its records."
B. (36A.11) Article 1, Chapter 1, Title 56 of the 1976 Code is amended by adding:
"Section 56-1-550. Annual license tag validation stickers which are issued for nonpermanent tags on certified, public law enforcement vehicles must be issued without charge by the Department of Motor Vehicles."
A. (37.5) Chapter 1, Title 24 of the 1976 Code is amended by adding:
"Section 24-1-295. Revenue derived wholly from the canteen operations within the Department of Corrections on behalf of the inmate population may be retained and expended by the department for the continuation of the operation of these canteens and for the welfare of the inmate population. The canteen operation must be treated as an enterprise fund within the Department of Corrections and must not be subsidized by state appropriated funds."
B. (37.14) Chapter 1, Title 24 of the 1976 Code is amended by adding:
"Section 24-1-300. All funds received by the Department of Corrections from the Social Security Administration pursuant to Section 1611(e)(1)(I) of the Social Security Act, which provides payment for information regarding incarcerated Social Security Insurance recipients, must be retained by the Department of Corrections and credited to a fund entitled 'Special Social Security' for the care and custody of inmates housed in the state correctional facilities."
A. (38.3) Article 3, Chapter 21, Title 24 of the 1976 Code is amended by adding:
"Section 24-21-310. The department may, with the approval of the State Budget and Control Board, set the per-day charge for housing and food based on the offender's ability to pay if the per-day charge does not exceed the actual costs of those services. This fee is in addition to any supervision fees that may be imposed by the department. The revenues generated by this per-day charge must be used to offset the cost of operating the restitution centers."
A. (39.13) Subarticle 3, Article 30, Chapter 7, Title 20 of the 1976 Code is amended by adding:
"Section 20-7-6915. A child committed to the Department of Juvenile Justice for a determinate period pursuant to Section 20-7-7810 may be released by the department before the expiration of the determinate period for 'good behavior' as determined by the department, after having served at least two-thirds of the time ordered by the court. The court, in its discretion, may include language in the order indicating that the child is not to be released before the expiration of the determinate period ordered by the court."
B. (39.15) Subarticle 3, Article 30, Chapter 7, Title 20 of the 1976 Code is amended by adding:
"Section 20-7-6920. The Department of Juvenile Justice may place juveniles in marine and wilderness programs or other community residence programs operated by nongovernmental entities. Juveniles receiving services in these community-residence programs must either be referred to the program by the family court as a condition of probation, released to the program by the Board of Juvenile Parole, or voluntarily agree to be assigned and released to the program by the Department of Juvenile Justice."
C. (39.16) Subarticle 3, Article 30, Chapter 7, Title 20 of the 1976 Code is amended by adding:
"Section 20-7-6925. Juveniles committed to the Department of Juvenile Justice who have been enrolled in, but not yet completed, a GED educational program while at the department, at the discretion of the local school district, upon release from the department must be allowed to enroll in either the juvenile's local school district's regular education program, in their appropriate grade placement, or allowed to enroll in that district's or county's adult education program. If enrolled in an adult education program, the juvenile's eligibility for taking the GED must be based upon the regulations promulgated by the Department of Education for youth who are confined in, or under the custody of, the Department of Juvenile Justice."
D. (39.17) Subarticle 3, Article 30, Chapter 7, Title 20 of the 1976 Code is amended by adding:
"Section 20-7-6930. Juveniles detained in any temporary holding facility or juvenile detention center or who are temporarily committed for evaluation to a Department of Juvenile Justice evaluation center, for the offense for which they are subsequently committed by the family court to the custody of the Department of Juvenile Justice, must receive credit toward their parole guidelines, if indeterminately sentenced, and credit toward their date of release, if determinately sentenced, for each day they are detained in or temporarily committed to a secure pre-dispositional facility, center, or program."
A. (60.6) Chapter 18, Title 27 of the 1976 Code is amended by adding:
"Section 27-18-195. Notwithstanding Section 27-18-190(A), the State Treasurer is required only to publish a notice not later than April thirtieth of the year immediately following the report required by Section 27-18-180 by electronic means in this State or at least once in a newspaper of general circulation in the county of this State in which is located the last known address of any person named in the notice."
B. (60.7) Chapter 5, Title 11 of the 1976 Code is amended by adding:
"Section 11-5-290. Unless otherwise prohibited by law, the State Treasurer may charge a fee for the operating and management costs associated with the investment management of various state funds and programs, and further, may retain and expend the fees to provide these services. The fees assessed may not exceed the lesser of (a) 0.02 percent of the funds managed or (b) the actual cost of the provision of these services. Fees assessed may not exceed the earnings on these investments."
C. (60.8) Chapter 5, Title 11 of the 1976 Code is amended by adding:
"Section 11-5-300. Notwithstanding Section 11-5-120, the State Treasurer shall publish quarterly, by electronic means and in a manner that allows for public review, a statement showing the amount of money on hand and in what financial institution it is deposited and the respective funds to which it belongs."
D. (60.9) Chapter 5, Title 11 of the 1976 Code is amended by adding:
"Section 11-5-310. Unless otherwise prohibited by law, the State Treasurer may charge actual costs associated with the administration and management of the indebtedness of the State, its agencies and institutions, and further, may retain and expend amounts allocated to provide these services. Costs associated with the original issuance of bonds and other indebtedness must be assessed on an hourly basis, must be taken from the costs of issuance of a bond issue or other indebtedness, and must not exceed the actual cost of providing these services. Ongoing costs of administration and maintenance must be assessed against expenses of debt service and must not exceed the actual costs of providing these services."
A. (69A.2) Article 1, Chapter 11, Title 11 of the 1976 Code is amended by adding:
"Section 11-11-335. Notwithstanding any other provision of law, state reimbursements for the Property Tax Relief fund must be funded in the same amount as in the prior fiscal year, except for the estimated growth in the seniors' homestead exemption and manufacturer's depreciation."
A.(72.10) Article 1, Chapter 11, Title 11 of the 1976 Code is amended by adding:
"Section 11-11-165. Agencies and institutions may transfer appropriations within programs and within the agency with notification to the Office of State Budget and the Comptroller General. A transfer may not exceed twenty percent of the program budget. Upon request, details of the transfers may be provided to members of the General Assembly on an agency by agency basis. Transfers of appropriations from personal service accounts to other operating accounts or from other operating accounts to personal service accounts may be restricted to any established standard level set by the State Budget and Control Board upon formal approval by a majority of the members of the State Budget and Control Board."
B.(72.30) Article 1, Chapter 11, Title 11 of the 1976 Code is amended by adding:
"Section 11-11-220. (A) Each agency may carry forward unspent general fund appropriations from the prior fiscal year into the current fiscal year, up to a maximum of ten percent of its original general fund appropriations less any appropriation reductions for the current fiscal year. Agencies must not withhold services in order to carry forward general funds.
(B) This section is suspended if necessary to avoid a fiscal year-end general fund deficit. For purposes of this section, the amount of the general fund surplus/deficit must be considered after all appropriations from the Capital Reserve Fund have been allowed and before any transfers from the General Reserve fund. The amount of general funds needed to avoid a year-end deficit must be reduced proportionately from each agency's carry forward amount.
(C) Agencies which have separate general fund carry forward authority shall exclude the amount carried forward by the separate authority from their base for purposes of calculating the ten percent carry forward authorized in this section. Any funds that are carried forward as a result of this provision are not considered part of the base of appropriations for any succeeding years. State agencies and institutions may provide selected employees a one-time lump sum bonus, not to exceed two thousand dollars, based on objective guidelines established by the State Budget and Control Board. This payment is not a part of the employee's base salary and is not earnable compensation for purposes of employee and employer contributions to the respective retirement systems."
C.(72.57) Article 21, Chapter 37, Title 12 of the 1976 Code is amended by adding:
"Section 12-37-2738. Notwithstanding the provisions of Section 12-37-2735, the amount credited to the Personal Property Tax Relief Fund is reduced from twenty million dollars to zero. If the Personal Property Tax Exemption Sales Tax is imposed in a county and a sales tax rate of two percent of gross proceeds of sales is insufficient to offset the property tax not collected, sufficient amounts must be credited to the Trust Fund for Tax Relief established pursuant to Section 11-11-150 to provide the reimbursement to offset such a shortfall in the manner provided in Section 4-10-540(A).
SECTION 2. The numbers in parenthesis following the individually lettered subdivisions in each Part of Section 1 of this act are for identification only.
SECTION 3. This act takes effect July 1, 2005.
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