74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 68
 
                         Senate Bill 378
 
Sponsored by Senator WALKER (Presession filed.)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Removes provision specifying that laws enacted after January 1,
1995, do not apply to Oregon Health and Science University unless
otherwise specified.
  Declares emergency, effective July 1, 2007.
 
                        A BILL FOR AN ACT
Relating to Oregon Health and Science University; creating new
  provisions; amending ORS 174.108, 174.117, 353.100 and 414.312;
  and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 353.100 is amended to read:
  353.100. (1) The provisions of ORS chapters 35, 190, 192, 244
and 295 and ORS 30.260 to 30.460, 200.005 to 200.025, 200.045 to
200.090, 236.605 to 236.640, 243.650 to 243.782, 297.040, 307.090
and 307.112   { - shall - }  apply to Oregon Health and Science
University under the same terms as they apply to public bodies
other than the state.
  (2) Except as otherwise provided by law, the provisions of ORS
chapters 182, 183, 240, 270, 273, 276, 279A, 279B, 279C, 283,
291, 292, 293, 294 and 297 and ORS 35.550 to 35.575, 180.060,
180.210 to 180.235, 183.710 to 183.725, 183.745, 183.750, 184.305
to 184.345, 190.430, 190.480, 190.490, 192.105, 200.035, 236.380,
243.105 to 243.585, 243.696, 278.011 to 278.120, 278.315 to
278.415, 279.835 to 279.855, 282.010 to 282.150, 357.805 to
357.895 and 656.017 (2)   { - shall - }  { +  do + } not apply to
the university or any not-for-profit organization or other entity
if the equity of the entity is owned exclusively by the
university and if the organization or entity is created by the
university to advance any of the university's statutory missions.
    { - (3) The university, as a distinct governmental entity, or
any organization or entity described in subsection (2) of this
section shall not be subject to any provision of law enacted
after January 1, 1995, with respect to any governmental entity,
unless the provision specifically provides that it applies to the
university or to the organization or entity. - }
  SECTION 2. ORS 174.108 is amended to read:
  174.108. (1) As used in the statutes of this state, a term
defined in ORS 174.108 to 174.118 has the meaning provided by ORS
174.108 to 174.118 only if the statute using the term makes
specific reference to the provision of ORS 174.108 to 174.118
 
that defines the term and indicates that the term has the meaning
specified in that provision.
  (2) Nothing in ORS 174.108 to 174.118 affects the meaning of
any statute that uses one or more of the terms defined in ORS
174.108 to 174.118 and that is in effect on January 1, 2002.
Nothing in ORS 174.108 to 174.118 affects the meaning of any
statute that uses one or more of the terms defined in ORS 174.108
to 174.118 and that is enacted after January 1, 2002, unless the
statute makes specific reference to the provision of ORS 174.108
to 174.118 that defines the term and indicates that the term has
the meaning specified in that provision.
  (3) None of the terms defined in ORS 174.108 to 174.118
includes   { - the Oregon Health and Science University, - }  the
Oregon State Bar, any intergovernmental entity formed by a public
body with another state or with a political subdivision of
another state, or any intergovernmental entity formed by a public
body with an agency of the federal government.
  SECTION 3. ORS 174.117 is amended to read:
  174.117. (1) Subject to ORS 174.108, as used in the statutes of
this state 'special government body' means any of the following:
  (a) A public corporation created under a statute of this state
and specifically designated as a public corporation.
  (b) A school district.
  (c) A public charter school established under ORS chapter 338.
  (d) An education service district.
  (e) A community college district or community college service
district established under ORS chapter 341.
  (f) An intergovernmental body formed by two or more public
bodies.
   { +  (g) Oregon Health and Science University. + }
    { - (g) - }  { +  (h) + } Any entity that is created by
statute, ordinance or resolution that is not part of state
government or local government.
    { - (h) - }  { +  (i) + } Any entity that is not otherwise
described in this section that is:
  (A) Not part of state government or local government;
  (B) Created pursuant to authority granted by a statute,
ordinance or resolution, but not directly created by that
statute, ordinance or resolution; and
  (C) Identified as a governmental entity by the statute,
ordinance or resolution authorizing the creation of the entity,
without regard to the specific terms used by the statute,
ordinance or resolution.
  (2) Subject to ORS 174.108, as used in the statutes of this
state 'special government body' includes:
  (a) An entity created by statute for the purpose of giving
advice only to a special government body;
  (b) An entity created by a special government body for the
purpose of giving advice to the special government body, if the
document creating the entity indicates that the entity is a
public body; and
  (c) Any entity created by a special government body described
in subsection (1) of this section, other than an entity described
in paragraph (b) of this subsection, unless the document creating
the entity indicates that the entity is not a governmental entity
or the entity is not subject to any substantial control by the
special government body.
  SECTION 4. ORS 414.312, as amended by section 1, chapter 2,
Oregon Laws 2007 (Ballot Measure 44 (2006)), is amended to read:
  414.312. (1) As used in ORS 414.312 to 414.318:
  (a) 'Pharmacy benefit manager' means an entity that, in
addition to being a prescription drug claims processor,
negotiates and executes contracts with pharmacies, manages
preferred drug lists, negotiates rebates with prescription drug
manufacturers and serves as an intermediary between the Oregon
 
Prescription Drug Program, prescription drug manufacturers and
pharmacies.
  (b) 'Prescription drug claims processor' means an entity that
processes and pays prescription drug claims, adjudicates pharmacy
claims, transmits prescription drug prices and claims data
between pharmacies and the Oregon Prescription Drug Program and
processes related payments to pharmacies.
  (c) 'Program price' means the reimbursement rates and
prescription drug prices established by the administrator of the
Oregon Prescription Drug Program.
  (2) The Oregon Prescription Drug Program is established in the
Oregon Department of Administrative Services. The purpose of the
program is to:
  (a) Purchase prescription drugs or reimburse pharmacies for
prescription drugs in order to receive discounted prices and
rebates;
  (b) Make prescription drugs available at the lowest possible
cost to participants in the program; and
  (c) Maintain a list of prescription drugs recommended as the
most effective prescription drugs available at the best possible
prices.
  (3) The Director of the Oregon Department of Administrative
Services shall appoint an administrator of the Oregon
Prescription Drug Program. The administrator shall:
  (a) Negotiate price discounts and rebates on prescription drugs
with prescription drug manufacturers;
  (b) Purchase prescription drugs on behalf of individuals and
entities that participate in the program;
  (c) Contract with a prescription drug claims processor to
adjudicate pharmacy claims and transmit program prices to
pharmacies;
  (d) Determine program prices and reimburse pharmacies for
prescription drugs;
  (e) Adopt and implement a preferred drug list for the program;
  (f) Develop a system for allocating and distributing the
operational costs of the program and any rebates obtained to
participants of the program; and
  (g) Cooperate with other states or regional consortia in the
bulk purchase of prescription drugs.
  (4) The following individuals or entities may participate in
the program:
  (a) Public Employees' Benefit Board;
  (b) Local governments as defined in ORS 174.116 and special
government bodies as defined in ORS 174.117 that directly or
indirectly purchase prescription drugs;
  (c) Enrollees in the Senior Prescription Drug Assistance
Program created under ORS 414.342;
    { - (d) Oregon Health and Science University established
under ORS 353.020; - }
    { - (e) - }  { +  (d) + } State agencies that directly or
indirectly purchase prescription drugs, including agencies that
dispense prescription drugs directly to persons in state-operated
facilities; and
    { - (f) - }  { +  (e) + } Residents of this state who do not
have prescription drug coverage.
  (5) The state agency that receives federal Medicaid funds and
is responsible for implementing the state's medical assistance
program may not participate in the program.
  (6) The administrator may establish different reimbursement
rates or prescription drug prices for pharmacies in rural areas
to maintain statewide access to the program.
  (7) The administrator shall establish the terms and conditions
for a pharmacy to enroll in the program. A licensed pharmacy that
is willing to accept the terms and conditions established by the
administrator may apply to enroll in the program.
 
  (8) Except as provided in subsection (9) of this section, the
administrator may not:
  (a) Contract with a pharmacy benefit manager;
  (b) Establish a state-managed wholesale or retail drug
distribution or dispensing system; or
  (c) Require pharmacies to maintain or allocate separate
inventories for prescription drugs dispensed through the program.
  (9) The administrator shall contract with one or more entities
to provide the functions of a prescription drug claims processor.
The administrator may also contract with a pharmacy benefit
manager to negotiate with prescription drug manufacturers on
behalf of the administrator.
  (10) Notwithstanding subsection   { - (4)(f) - }  { +
(4)(e) + } of this section, individuals who are eligible for
Medicare Part D prescription drug coverage may participate in the
program.
  SECTION 5.  { + (1) Except as provided in ORS 174.108, any
provision of law generally relating to all governmental entities
that is enacted after January 1, 1995, applies to Oregon Health
and Science University unless the provision specifically provides
that the university is not subject to the law.
  (2) Any provision of law enacted after October 6, 2001, that
applied generally to all government entities, and that described
those entities by specific reference to public bodies as defined
in ORS 174.109, applies to Oregon Health and Science
University. + }
  SECTION 6.  { + This 2007 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2007 Act takes effect July 1,
2007. + }
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