(2) Manslaughter in the second degree is a Class C felony.
Section 19. KRS 165.160 is amended to read as follows:
(1) Cities of the second, third, and fourth classes[ class] may establish or acquire by lawful conveyance municipal colleges for the purpose of promoting public education. A college in a city of the second, third, or fourth class shall not constitute a municipal college or receive support as provided in KRS 165.170 to 165.190 unless it is controlled by a board of trustees appointed by the mayor and legislative body of the city, and unless its principal work is the maintenance of courses affording instruction in such arts, sciences and professions and conferring such certificates of attainment as are authorized by other similar institutions of learning above the high school grade. No advisory board shall be appointed for any college established pursuant to the provisions of this section, and the board of trustees of the college shall perform the functions of an advisory board in addition to its other functions.
(2) If the college is supported by a municipal college support district, three (3) members of the board of trustees mentioned in subsection (1) shall be appointed by the governing body of the district.
Section 20. KRS 165.165 is amended to read as follows:
The legislative body of a city of the second, third, or fourth class in which a municipal college or junior college exists under the provisions of KRS 165.160 to 165.260 may, for educational purposes, use and employ all the authority contained in KRS 165.080 to 165.140 and 162.340 to 162.380 to issue bonds for the benefit of such college.
Section 21. KRS 165.180 is amended to read as follows:
Any city of the second, third, or fourth class having a municipal college may devote to college purposes any funds or properties derived from sources other than taxes levied for special purposes.
Section 22. KRS 165.190 is amended to read as follows:
The legislative body of any city of the second, third, or fourth class may appropriate as a site for the buildings and grounds for a municipal college any public grounds of the city not especially appropriated or dedicated to any other use.
Section 23. KRS 165.195 is amended to read as follows:
The board of trustees of a municipal college in a city of the second, third, or fourth class may acquire, by purchase or gift, lands and improvements for the purpose of expanding the plant and extending the usefulness of the college, and when unable to agree with the owner of land and improvements necessary for the purposes of the college may proceed to condemn the land and improvements. The condemnation proceedings shall be conducted in the manner provided in the Eminent Domain Act of Kentucky.
SECTION 24. A NEW SECTION OF KRS CHAPTER 165 IS CREATED TO READ AS FOLLOWS:
It shall be a public purpose for a city of any class to support postsecondary education through the appropriation of funds for postsecondary educational facilities located or to be located within the city and for postsecondary educational programs offered within the city. Nothing in Sections 19 to 24 of this Act shall create an obligation or liability for the Council on Postsecondary Education.
SECTION 25. A NEW SECTION OF KRS CHAPTER 164 IS CREATED TO READ AS FOLLOWS:
(1) The "Lung Cancer Research Fund" is created and shall receive funds each year from the tobacco settlement agreement fund created in KRS 248.654 in the amount specified in subsection (5)(b) of Section 2 of House Bill 517 as enacted at the 2000 Regular Session of the General Assembly. The lung cancer research fund shall be used to finance the Lung Cancer Research Project described in subsection (5) of this section. No revenues from the lung cancer research fund shall be allocated until the board has adopted the strategic plan described in subsections (5) and (6) of this section.
(2) A research consortium between the University of Kentucky and the University of Louisville is created and shall be known as the Governance Board of the Lung Cancer Research Project. The consortium shall be attached to the Council on Postsecondary Education for administrative purposes.
(3) The board shall consist of nine (9) members appointed by the Governor as follows:
(b) Two (2) members shall be from the faculty of the School of Medicine at the University of Louisville;
(c) Two (2) members shall be from the Council on Postsecondary Education; and
(d) Three (3) members shall be from the state at large, one (1) of whom shall be appointed chair by the Governor.
(4) Except as provided in paragraphs (a) to (d) of this subsection, the terms of the members shall be for four (4) years and until their successors are appointed and confirmed. A vacancy on the board shall be filled for the remainder of the unexpired term in the same manner as the original appointment. Members may be reappointed. The initial appointments shall be for staggered terms, as follows:
(a) Two (2) members shall be appointed for one (1) year;
(b) Two (2) members shall be appointed for two (2) years;
(c) Two (2) members shall be appointed for three (3) years; and
(d) Three (3) members shall be appointed for four (4) years.
(5) The Governance Board of the Lung Cancer Research Project shall develop and oversee the implementation of a twenty (20) year strategic plan that utilizes the resources of both the University of Louisville and the University of Kentucky in establishing the Lung Cancer Research Project. The Lung Cancer Research Project shall be a joint program to:
(a) Develop an expertise in the area of lung cancer research with an immediate focus on early detection and epidemiology and with an ultimate goal of eradication of lung cancer;
(b) Establish a statewide clinical trial network to make university-based clinical trials available to the community physician in order to bring the most innovative cancer treatments to all Kentuckians in need of these treatments;
(c) Leverage the resources earmarked for the Lung Cancer Research Project toward the certification of the cancer program at the University of Kentucky and the University of Louisville by the National Cancer Institute as a cancer center; and
(d) Undertake other initiatives consistent with the strategic plan.
(6) The strategic plan shall identify both short-term and long-term goals and the appropriate oversights to measure progress toward achievement of those goals; it shall be updated every two (2) years.
(7) The Governance Board of the Lung Cancer Research Project shall submit an annual report to the Governor and the Legislative Research Commission by September 1 each year for the preceding fiscal year, outlining its activities and expenditures.
(8) The Auditor of Public Accounts, on an annual basis, shall conduct a thorough review of all expenditures from the lung cancer research fund and, if necessary in the opinion of the Auditor, the operations of the Lung Cancer Research Project and the lung cancer research fund.
Section 26. KRS 205.5632 is amended to read as follows:
(1) No prior authorization shall be required for reimbursement of any claim involving any Medicaid-covered new drug that is available after July 15, 1998, for a period of at least twelve (12) months, during which time the Drug Management Review Advisory Board may review the product.
(2) The Department for Medicaid Services shall promulgate administrative regulations in accordance with KRS Chapter 13A for the drug submission program. Prior to implementation of the administrative regulations, the Drug Management Review Advisory Board shall review the guidelines.
(3) The Department for Medicaid Services shall, within twenty-four (24) months of July 15, 1998, analyze drug class reviews of all current drugs requiring prior authorization, and shall continue requiring prior authorization by using drug class reviews, safety, utilization factors, and unusual or extreme cost drivers having inappropriate economic impact on the Department for Medicaid Services, until the review criteria are promulgated by administrative regulations according to KRS Chapter 13A, and pursuant to KRS 205.5634(2). At least fifty percent (50%) of class reviews shall be completed within twelve (12) months of July 15, 1998.
(4) (a) Federal Food and Drug Administration (FDA) approved prescription drugs that have been determined to be within the same pharmacological category, and that have comparable clinical application, efficacy, and safety, and that are of comparable cost to other FDA-approved prescription drugs that have been placed on the Kentucky Medicaid nonprior-authorized drug file shall be placed on the Kentucky Medicaid nonprior-authorized drug file. Any drug that is removed from prior authorization in accordance with the provisions of this section shall be returned to prior authorization status if the comparable drug that was nonprior-authorized subsequently becomes prior authorized. To assure the cost effective operation of the Medicaid pharmacy program, the department shall file, no later than October 1, 2000, administrative regulations in accordance with KRS Chapter 13A that describe the process that will be employed to describe drug comparability with regard to efficacy, safety, and cost.
(b) For purposes of this subsection, "pharmacological category" means a category of drugs that is characterized as having very similar properties and therapeutic effects upon living organisms.
SECTION 27. A NEW SECTION OF KRS CHAPTER 216B IS CREATED TO READ AS FOLLOWS:
(1) As used in this section, "adult day health care program" means a program licensed by the Cabinet for Health Services that provides organized health care for its clients during specified daytime hours, that may include continuous supervision to assure that health care needs are being met, supervision of self-administration of medications, and provision of nursing services, personal care services, self-care training, and social and recreational activities for individuals of all ages.
(2) The cabinet shall promulgate administrative regulations in accordance with KRS Chapter 13A to establish health, safety, and treatment requirements for licensed adult day health care programs. No person, association, corporation, or other organization shall operate or maintain an adult day health care program without first obtaining a license as provided in this section.
(3) The cabinet may issue a license upon request to any adult day health care program meeting the standards required under subsection (2) of this section and administrative regulations promulgated thereunder. The cabinet may deny, revoke, suspend, or modify an adult day health care program license for failure to comply with standards set by the cabinet.
(4) Services provided in an adult day health care program for its clients may include:
(a) Medical therapeutic services; and
(b) Physical and speech therapy.
Section 28. KRS 205.561 is amended to read as follows:
(1) The cabinet shall submit an annual report to the Governor and the Legislative Research Commission on the dispensing of prescription medications to persons eligible under KRS 205.560, on or before December[September] 1 of each[the] year. Each[Such] report shall include a research study to determine the average cost of dispensing prescription medications[an estimate of the current cost to pharmacies], including associated administrative costs, and the average cost of acquiring drugs for[of dispensing prescription medications to] eligible recipients under the provisions of KRS 205.560, the current level of dispensing fee provided by the cabinet, and an estimate of[ additional] revenues required to adequately adjust reimbursement to cover costs for[ such] pharmacies. The report shall also include current data on the most utilized and abused drugs in Medicaid, a determination of factors causing high drug costs and drug usage rates of Medicaid recipients, objectives and timelines for cost containment in the Medicaid drug program, comparative data from other states, and cost effectiveness of the drug formulary and prior authorization process. The annual report shall be developed with the advice of the Drug Management Review Board created under KRS 205.5636.
(2) Prior to data collection and analysis of any research study to determine the cost of dispensing prescription medications and the cost of acquiring drugs for Medicaid eligible recipients, the Cabinet for Health Services and any person or entity holding a contract to perform the study shall report to the Interim Joint Committee on Health and Welfare regarding the proposed research methodology for carrying out subsection (1) of this section.
(3) Any research study to determine the cost of dispensing prescription medications and the cost of acquiring drugs for Medicaid eligible recipients shall include the following components:
(a) Recent academic review of the literature, previous research performed for the Department for Medicaid Services, and research from other states to determine the relevant factors or characteristics to include in the study;
(b) Analysis of relevant factors or characteristics that influence dispensing and acquisition costs including, but not limited to:
4. Medicaid volume as a percent of the total volume;
(c) Sufficient representative sample appropriately stratified to make valid estimates of the effects of each of the relevant factors on dispensing and acquisition costs;
(d) Standard error for each estimate;
(e) Calculation of a ninety-five percent (95%) confidence interval for each sample estimate;
(f) Reports of statistical tests of significance at the five percent (5%) significance level to determine if the variation in dispensing and acquisition costs occur across the stratification types included in the study;
(g) Reports of test results for normality;
(h) Reports of methods to identify and exclude outliers; and
(i) Analysis of the cost of administering the prior authorization program by the Department for Medicaid Services and factors which cause a discrepancy between the cost of dispensing prescription medications and the cost of acquiring drugs for Medicaid eligible recipients as compared to the cost of dispensing prescription medications and acquiring drugs for patients within the commercial market.
(4) The findings of any research study and the annual report required under this section shall be used to establish the fees for dispensing prescription medications to Medicaid eligible recipients. The dispensing fees shall reflect the average cost of dispensing prescription medications to Medicaid eligible recipients in accordance with the annual report.
Section 29. KRS 205.6316 is amended to read as follows:
The Cabinet for Health Services shall review the procedures for medical assistance reimbursement of pharmacists to reduce fraud and abuse. The cabinet shall by promulgation of administrative regulation, pursuant to KRS Chapter 13A, establish the following:
(1) Point-of-sale computer technology, with integration of data at the physician's office and the pharmacy, that will permit prospective drug utilization review;
(2) Usage parameters by drug class to enable medical necessity and appropriateness reviews to be conducted prior to payment;
(3) A dialog among the Department for Medicaid Services, the Kentucky Medical Board of Licensure, and the Kentucky Board of Pharmacy, to develop recommendations for legislation for the 1996 Regular Session of the General Assembly that will strengthen the generic substitution laws for prescription medication; and
(4) A dispensing fee for each prescription in accordance with the findings of the annual report submitted by the cabinet pursuant to KRS 205.561.
Section 30. The following KRS sections are repealed:
147A.130 Fee to cover administrative costs of health care trusts -- Referral fees prohibited.
304.17-410 Department to collect data concerning cost of health insurance -- Report to General Assembly.
