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Raleigh, North Carolina
May 4, 2007
Following the strong sentencing of former House member Michael Decker last Friday, U.S. District Judge James Dever III says he is now considering doing the same for the former House speaker Jim Black. Dever said in court documents Tuesday that he is considering an "upward departure" from the range of sentences recommended by court officials. Black's sentencing date was delayed until May 18. Black, D-Mecklenburg, admitted in February that he took money from three chiropractors to support their agenda in the Legislature, pleading guilty to one federal count of accepting things of value in connection with the business of state government. Black also awaits sentencing in state court for offering a bribe and obstructing justice in a scheme to help him keep his leadership position. The federal count is punishable by a maximum 10-year prison sentence and $250,000 fine. But Dever said he wants to give Black "a sentence that reflects the seriousness of the offense, promotes respect for the law, provides just punishment for the offense, and affords adequate deterrence to criminal conduct." Black's attorneys filed a motion on Thursday asking Dever to recuse himself since Dever served as one of the plaintiffs' counsels in a recent redistricting lawsuit where Black was one of the defendants.
In other disturbing news, an early morning blaze destroyed much of the restaurant owned by Senate leader Marc Basnight on Tuesday, leaving on the memory of the Lone Cedar Cafe. Nags Head officials estimate losses in excess of $1 million. No injuries were reported but it took more than 55 firefighters to bring the fire under control within two hours. Nags Head public safety officials and the State Bureau of Investigation are looking into the cause of the fire. Basnight, a Democrat, has served 12 terms in the Senate, including a record eight terms as the chamber's leader.
On the legislative circuit - while the Kentucky Derby may be on the minds of some, NCRMA has been busy jockeying for our own positions on Jones Street . We're happy to report that it has been an extremely hectic but overall, a very successful week for NCRMA. Legislation on organized retail theft, an Energy Star Sales Tax Holiday, electronic pharmacy records, minority pharmacists, Work Opportunity Tax Credits, DOT Express Permitting, PDA's and diabetes management all took strides in the right direction this week! Read more detail in our report below…
The budget Derby continues in the House as Legislative budget-writers learned Monday that they have another $260 million to help balance the state budget from April tax deadline filings, which were bolstered by capital gains on stocks and real estate sales and withholding payments from continued job growth. The extra money means North Carolina has brought in $1.1 billion more than anticipated through the first 10 months of the fiscal year. Budget chairs still must be careful in using the additional money for recurring expenses as much of the surplus comes from onetime corporate taxes or capital gains taxes that can't be counted on year after year.
The House appropriations sub-committees did continue to push through their budget meetings yesterday in order to sign off on portions of the House's proposed two-year state budget. Some decisions are still pending on the full tax package from the House as well as their decision on pay raises for state employees and helping counties pay the cost of Medicaid expenses. We are also continuing to work on our pharmacy budget struggle, read more in section 18 below.
Crossover Deadline, set for May 17th is drawing closer - when every non-money bill must clear its house of origin to remain eligible for consideration. While 23 was a successful number for Michael Jordan - it's mixed bag for NCRMA. All the more reason that we ask you to please read closely through the next 23 issues we have been lobbying on this week and please give us feedback.
ORT/Amend Larceny Laws – passed Senate JII Yesterday – Thank You!
Energy Star Tax Holiday – expect a bill to be filed next week
DOT Express Permitting – passed House Transportation on Wednesday
Smoking Ban – died on House Floor
Electronics Recycling Bills – met with Senator Cowell on Tuesday
WOTC – reason to believe we have inclusion of WOTC in House budget
Peanut Allergies – on House Health agenda for next week
Energy Efficiency – met with working group and Senator Clodfelter this week
Bed bugs – waiting to hear back from DENR on new language
Sales Tax Holiday Changes – met with Speakers tax counsel this week
Cigarette Tax Stamps – met with Senate and House bill sponsors this week
Health Insurance High Risk Pool – passed House
Duty to Report Child Pornography – SB 132 on Senate Commerce calendar next Thursday
ALCOHOL ISSUES:
Coupon Bill – On hold after increased opposition pressure from C-stores, Mary Easley, ABC Commission, Gallo & the Wine Institute
Lose drivers license for aiding/abetting underage drinking –passed House ABC on Tuesday
Allowing Consumption by Employee or Agent – passed House ABC on Tuesday
ABC Violations/Fee Changes – met with RASS and Senator Bingham yesterday
PHARMACY ISSUES:
Budget Woes – continue to fight tooth and nail to keep us whole
Insurers/Cover Rx in Emergencies – passed House Insurance on Tuesday
E-Records Bill – passed House Health on Tuesday, on House calendar for Monday night
Diabetes Management – Bill filed this week
Minority Pharmacist Recruitment - $250,000 included in House Budget
Gold Standard – Back in the budget to direct DHHS to work on the program
1: ORGANIZED RETAIL THEFT (ORT)
SB 1270: Amend Larceny Laws, Senator John Snow (D-Cherokee)
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1270v0.html
SB 1270 passed out of the full Judiciary II committee unanimously on Thursday. Senator John Snow (D-Cherokee) is a former Judge who introduced the legislation on our behalf to crack down on Organized Retail Theft. Senator Katie Dorsett (D-Guilford) ran an amendment to further reduce the current felony threshold of $1000, below the $500 included in SB 1270, down to $300. There was a thorough committee discussion as to the implications of the amendment including questions on what this could do to the incarceration rate and what kind of fiscal impact this will have. The vote on the amendment was too close to call - “division” was called and votes were hand counted resulting in a tie votes and the amendment failing for lack of majority. The level of enthusiasm from the committee was exciting but we must start our work again now that the bill must move through the Senate Appropriations committee where a fiscal note will be attached which could be substantial.
We worked with Senator Snow and the subcommittee on SB 1270 to make the following a felony:
Receiving goods that are believed to be stolen, even if the goods are not stolen
Stealing goods in excess of $500 (current felony threshold is $1,000)
Stealing goods through an emergency exit door
Theft of infant formula in excess of $100
Removing or deactivating an anti-shoplifting device
Switching UPC Codes
THANK YOU to those of you that wrote letters, emails and made phone calls to members of the Senate Judiciary II committee in support of SB 1270! While it is important your NCRMA staff stay inform members on issues before a committee hearing - a legislator is always more responsive to you - their constituents. This is why it is so helpful when you contact your legislator to explain the effect that these bills have on your company.
2: ENERGY STAR TAX HOLIDAY
Expect a bill to be filed
We have been following up with Senator Basnight's office since we were summoned last week to discuss an Energy Star Sales Tax Holiday. The issue peaked his interest as a means to push North Carolina consumers to become more energy efficient and the group of 10 or so Senators in the room were interested in gathering more information. This week, we understand that Senator John Snow (D-Cherokee), will be working on this piece of legislation and believe we could see a bill filed as early as next week.
There is a hurdle with the Streamlined Sales Tax Agreement but if we can provide some answers to the Senate Leadership staff, it appears that we may be able to jump it.
3: DOT EXPRESS PERMITTING
HB 1632: Representative Becky Carney (D-Mecklenburg) Ray, Saunders, Allen
http://www.ncleg.net/Sessions/2007/Bills/House/HTML/H1632v1.html
HB 1632 passed the House Transportation committee this week unanimously – the bill now moves to House Rules along with all other study bills. Unlike the Department of Environment and Natural Resources, the Department of Transportation does not have an “express permitting” process. It has become an ordeal for many retailers to get driveway, encroachment or signaling permits in a timely manner.
DOT staff admitted that there are delays particularly in the area of driveway permits but were concerned that there would not be enough time to try to implement a DOT express permitting program this year. It took an appropriation for DENR to begin their program and the DOT budget has already been submitted. This bill directs the Joint Legislative Transportation Oversight Committee to conduct a study of this issue and report back by March 10, 2008.
4: SMOKING BAN
HB 259 – Prohibit Smoking in Public Places – Representative Hugh Holliman (D-Davidson)
http://www.ncleg.net/Sessions/2007/Bills/House/HTML/H259v2.html
A bill that would have banned smoking in many public places failed 61-55 in the House on Wednesday. More than a dozen Democrats from counties where tobacco is grown or manufactured opposed the ban. Representative Hugh Holliman (D-Davidson) the bill's sponsor and the House Majority Leader had pulled the measure from the floor calendar and took the bill through committee twice in an effort to win support. The bill originally would have banned smoking in most restaurants, bars, offices and factories. After the return to committee, the bill excluded restaurant-bars that are age-restricted and smoking-designated hotel rooms. It also gave local governments the authority to override those exceptions with stricter regulations.
Holliman urged lawmakers to view the bill as an effort to protect nonsmoking citizens from unwanted exposure to smoke in restaurants, offices and other businesses. He compared it laws and regulations that try to protect workers from on-the-job hazards. Opponents insisted the measure would criminalize a legal activity and unfairly punish business owners, who could have been fined if someone smoked in their establishment. The proposed law didn't include any punishment for smokers themselves.
5: ELECTRONICS RECYCLING
Senate Bill 1553– Senator Janet Cowell (D-Wake)
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1553V1.html
Senate Bill 1525 – Senator Kay Hagan (D-Guilford)
http://www.ncga.state.nc.us/Sessions/2007/Bills/Senate/HTML/S1525v0.html
Your staff met with Senator Janet Cowell (D-Wake) Tuesday on her e-recycling proposal - SB 1553. Marc Pearl, who had joined us last week in our conference call with Senator Hagan, joined us again this week with Senator Cowell. Mark is with the Consumer Electronics Retailers Coalition.
Cowell has filed ADF bills in the past, but SB 1553 is based on Maine 's legislation, including an up-front registration fee and an annual renewal fee. Hagan's district is home to Dell and this bill, supported by Dell, is one that we have worked on since last fall. Senator Janet Cowell has also filed an electronics recycling bill. We have been told that there is an effort to work out a compromise between these two pieces of legislation that will later be incorporated into a larger/omnibus solid waste bill.
In our meetings with both bill sponsors, we have explained the need to include televisions and feel good about being able to incorporate that change into a new draft. Senator Cowell has been working on these issues for years and had a lot of good questions for Marc in our phone conversation.
6: WORK OPPORTUNITY TAX CREDIT (WOTC)
HB 1044: Representatives William Wainwright (D-Craven), Representative Garland Pierce (D-Scotland)
http://www.ncleg.net/Sessions/2007/Bills/House/HTML/H1044v1.html
Representative Wainwright filed HB 1044 at our request which would make North Carolina employers eligible for a tax credit of up to $2,000 of wages paid to employees meeting certain criteria and who are employed at least nine months. After business incurred the increase in the minimum wage which passed last session, we have explained to legislators that many of the hires that could create this tax credit for an employer would be hired at or near the minimum wage.
An employer could receive the credit for hiring workers who:
1) Receive Temporary Assistance to Needy Families
2) Are a veteran and a member of a family that has received benefits under the Food Stamp Program
3) Are between the ages of 18 and 24 years old when hired and a member of a family that has received benefits under the Food Stamp Program and
4) Received benefits from the Supplemental Security Income
5) Has a felony on their record.
We are now hearing that our WOTC initiative has made it into the House budget at an amount that could be as much as $6 million! This would put us in a great position to work with the Senate in including the initiative in the Senate budget as well. We will continue to stay on top of the budget process closely.
7: PEANUT ALLERGIES
HB 1377: Representative Martha Alexander (D-Mecklenburg)
http://www.ncga.state.nc.us/Sessions/2007/Bills/House/HTML/H1377v1.html
This bill would require the Public Health Division of the Department of Health and Human Services to adopt rules requiring stores that prepare or serve food (grocery delis) containing peanuts or tree nuts to post a consumer advisory in a conspicuous place where it may be readily observed by the public prior to consumption of the food. The advisory shall explain peanut and tree nut allergies and health-related consequences to individuals with peanut or tree nut allergies who are exposed to food items that contain or are prepared with peanuts or tree nut products. In addition to the consumer advisory, the establishment shall include in or with its menu an advisory statement about peanut and tree nut allergies and shellfish allergies.
NCRMA met with Representative Martha Alexander and explained that federal law already requires that allergens be included on the label of many prepared foods and have been working with FMI to gather more information to take back to Rep. Alexander. Alexander had a young constituent die from a reaction to peanuts contained in Chinese food at a mall food court a couple of years ago which has made this a hot-button issue for her. The bill is scheduled for the House Health Committee next Tuesday at noon.
8: ENERGY EFFICIENCY
SB 3 - Senator Charlie Albertson (D-Duplin)
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S3v1.html
SB 3 is the energy bill that calls for more renewable energy sources and restructures the way utilities recoup the costs of new plant construction.
We owe a debt of gratitude to Food Lion and Wal-mart for joining your NCRMA staff yesterday to meet with Senator Dan Clodfelter on SB 3. Angela Beehler, Wal-mart's Director of Energy Regulation, joined Tara Stewart and Teross Young on Jones Street to re-iterate our concerns that commercial users will end up paying the entire price tag. Meetings continued throughout the day with legislative staff, including George Givens who is chairing the working group. Angela's energy expertise was especially helpful to have available for the afternoon working group meeting – though, yet again, the group was not able to come to any resolution and failed to take up the multitude of amendments handed out at the onset of the meeting.
To submit changes to the legislation, please make all changes in the original statute. Due to its length, the statute could not be attached, but it can be found online at NCRMA's website: http://www.ncrma.org/Rates%20of%20Public%20Utilities.pdf
The next meetings of the working group will be held the next two Fridays: Friday, May 11 and Friday, May 18 at 10:00 am in Room 544 of the Legislative Office Building , located at: 300 North Salisbury Street , Raleigh , NC 27603-5925 .
9: BED BUGS
SB 1331 – Modify Bedding Sanitation Laws – Senator Bill Purcell (D-Scotland)
http://www.ncga.state.nc.us/Sessions/2007/Bills/Senate/HTML/S1331v1.html
After several conversations with Senator Purcell and the Department of Environment and Natural Resources (DENR), we are again at a point where we are awaiting new draft language from DENR on the bill. SB 1331 would dramatically expand the law on inspection and storage for bedding and what items the law would apply to going forward.
The Department continues to want to expand the law requiring inspection, storage and sanitizing from mattresses and box springs to things like tables, chairs, sofas, couches, rugs, carpets, dressers, cabinets, bed frames, bed posts, bed headboards, bed footboards, and any other furniture normally found in a home or rental unit.
The Department would also like to redefine a second-hand good as any item that is kept overnight rather than actually used. And finally, the Department bent on its stance this week on wanting to require that second-hand items must be kept in a separate building rather than in a separate room as is now required. The Department believes it would be as simple as requiring each item to be inspected and if there are no bed bugs, that the item could be stored anywhere in the store. The Department offered to provide training for retailers probably without recognizing how many retail outlets there are in the state.
10: HB 1635: SALES TAX HOLIDAY CHANGES
Introduced by: Representative Jennifer Weiss (D-Wake)
http://www.ncleg.net/Sessions/2007/Bills/House/HTML/H1635v0.html
This bill moves the sales tax holiday to the third Friday through Sunday in August, increases the cap on the sales price of eligible textbooks to $300, and amends the definition of school instructional material. After hearing our responses from you, we have gathered that most are in opposition to changing the dates as it puts us out-of-sync with those states around us which will not only put NC at a competitive disadvantage but confuses customers in border counties. We met with the tax counsel to the Speaker of the House this week to explain our position.
The bill was referred To House Committee on Commerce and then, if favorable, to Finance. We are continuing to work with the bill sponsor and House counsel on this issue.
11: CIGARETTE TAX STAMPS
HB 1475 – Restore Cigarette Tax Stamps – Representative Dan Blue (D-Wake)
http://www.ncleg.net/Sessions/2007/Bills/House/HTML/H1475v0.html
Food Lion and Wal-mart joined NCRMA staff yesterday to talk to Representative Blue on HB 1475 and Senator Hartsell, who sponsored SB 1411. The bills require that North Carolina tobacco wholesalers affix an excise stamp to cigarettes prior to distribution. This legislation was introduced at the request of Philip Morris and has the effect of causing retailers who act as their own wholesalers a tremendous amount of money. Lorillard and RJ Reynolds oppose the legislation.
Currently, NC doesn't require a tax stamp to be affixed to cigarettes sold in NC. If retailers have to start affixing stamps to the cigarette packs, retailers will have to maintain a very costly stamp inventory. The stamping of cigarettes is far from being a perfect process, costs additional employee time and will make it much harder for trucks to leave on time with the cigarette orders.
The House bill has been referred to the Judiciary II committee (Chaired by Rep. Blue). If given a favorable report, the bill would then have to go to the House Finance Committee. Your staff has been working with the wholesalers on this issue as well. After our conversations with the bill sponsors this week, we are optimistic that they understand our concerns with the bill.
12: HEALTH INSURANCE HIGH RISK POOL
HB 265 Sponsored by Representative Verla Insko (D-Orange)
http://www.ncleg.net/Sessions/2007/Bills/House/HTML/H265v6.html
The House overwhelmingly approved legislation establishing a high-risk health insurance pool on Monday night in an effort to insure those with pre-existing conditions or for whom insurance is otherwise unaffordable.
The bill would assess health insurers to help pay for the pool, costs likely to be passed on to the consumers which they insure. The initial cost would be 70 cents per month per insurer person, but would rise to $2 per insured by 2013. Supporters argued that health care for the uninsured, often received at expensive hospital emergency rooms, is already being paid for by the insured by hospitals passing along costs and that even with the assessment, those insured by the pool would pay the bulk of the money into it (better than 60 percent) through their premiums.
At least 18 states have established similar high-risk health insurance pools to try to increase the availability of health care insurance and lower overall health care costs. The House bill would establish an 11-member board of directors to oversee the pool, with several seats designated for those in the insurance industry. The bill now goes to the Senate Commerce committee for consideration.
13: FILM PROCESSING/REPORTING OF CHILD PORNOGRAPHY
House Bill 27 – Representatives Ray, Goforth, Spear and Glazier
http://www.ncleg.net/Sessions/2007/Bills/House/HTML/H27v2.html
SB 132 - Senator Walter Dalton (D-Rutherford)
Bills were filed in both the House and Senate to address the reporting of child pornography by a photo developer. We have worked with all Senate and House sponsors on a compromise as most photo retailers already have a policy in place to address this concern. HB 27 was amended before it passed the House to incorporate our requested changes, including:
1) You have the option of filing a report with either the hot line or with local law enforcement;
2) Retailers are under a duty to report child pornography rather than facing criminal penalties for failure to report;
3) A person in your company who observes such child pornography may report the activity to a supervisor to report;
4) A person or a third-person contractor who reports child pornography receives criminal and civil immunity if the report is made in good faith;
HB 27 is now in the Senate Judiciary 1 committee, Chaired by Senator Martin Nesbitt (D-Buncombe). SB 132 on Sexual Predators also includes language on a film processor/developer's duty to report. In our meeting with staff, we explained the progress we had made in the House and with the Attorney General's office and that whichever legislation became the vehicle of choice – we were happy with the House version. SB 132 is scheduled to be heard in the Senate Committee on Judiciary II (Criminal) next Thursday, May 10 at 10:00 am. We have spoken with the Attorney General's office this week and understand that they have a couple of minor tweaks to make to the bill but we expect the proposed committee substitute to include the language agreed to in HB 27.
ALCOHOL ISSUES
14: MANUFACTURER COUPONS/PURCHASING ABC PRODUCTS
SB 1478: Senator Ed Jones (D-Halifax)
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1478v1.html
SB 1478 is scheduled for Tuesday's Senate Commerce committee meeting – the ship seems to be sinking at this point. We have continued to patch up the holes in this boat but inevitably face more opposition each time we are able to get our heads above water. In addition to letters of opposition from Reverent Mark Creech and the Christian Action League, First Lady Mary Easley has also written letters of opposition with concern for increase underage drinking. The Convenience Store Association and Petroleum Marketers Association ran around this building this week opposing the bill, arguing that it puts them at a competitive disadvantage. And, low and behold, the ABC Commission even chimed in to exclaim to Senate leadership that they believed this was a “bad” bill and have recruited Gallo and the Wine Institute to lobby against our bill as well.
The bill allows a retailer to offer a discount coupon to purchase beer and wine or allow a customer to use the buyer's membership card, discount card or loyalty card to receive the discount. The ABC Commission rules now prohibit cents-off coupons or free beverages as part of alcohol advertising.
15: DRIVER'S LICENSE REVOCATION FOR ABC VIOLATION
HB 1277 - Representative Ty Harrell (D-Wake)
http://www.ncleg.net/Sessions/2007/Bills/House/HTML/H1277v1.html
This bill directs the Division of Motor Vehicles (DMV) to revoke a person's driver's license for one year if the person is convicted of aiding and abetting by an underage person or by a person of lawful age (was, by an underage person) or of selling alcohol to an underage person effective December 1, 2007.
The language in the bill could have easily been misinterpreted as written. It referred to a statute that also included “selling to an underage person.” We met with Representative Harrell this week to discuss the concern and offered some clarifying language that would break up the statute of reference. We are continuing to work with Representative Harrell on new language as he was amenable to the change. The bill has passed the House committee on Transportation and is scheduled for its second committee hearing in House Judiciary II on Tuesday at 10am.
16: ABC Violations/Fee Changes
SB 838 – Senator Stan Bingham (R-Davidson)
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S838v1.html
Yesterday, we met with Senator Bingham and Responsible Alcohol Sales and Service (RASS) on Senate Bill 838. Teross Young with Food Lion serves on the RASS Advisory Board and was in town to meet with us yesterday. The bill was introduced by Senator Stan Bingham (R-Davidson) as requested by the North Carolina Alcoholic Control Commission Chairman Doug Fox. The bill would double the penalties for ABC violations as follows:
For a first violation from $500 to $1,000
For a second violation from $750 to $1,500
For a third violation from $1,000 to $2,000
For an offer in compromise where the Commission could suspend of revoke an ABC permit, it would allow the Commission to charge the permittee up to $25,000 rather than the current amount of $5,000.
We continued to explain that the penalties are pretty stiff as they are, and we make an enormous effort with respect to training and procedures to comply with the regulations to the fullest. We questioned the need for doubling penalties when the Commission already has the ability to fine up to $5,000.
17: Add Employee or Agent to the Individuals Who are Prohibited from Allowing Consumption of Malt Beverages and Unfortified Wine on the Premises of an Off-Premises Only ABC Permitted Location.
HB 1751, Introduced by: Representative Marilyn Avila (R-Wake)
http://www.ncleg.net/Sessions/2007/Bills/House/HTML/H1751v0.html
This bill adds employees or agents of an ABC permittee in the statute's prohibition against allowing consumption of the beverages on the permittee's premises, when the permit only authorizes the sale of beverages to be consumed off the permittee's premises (now, statute applies only to the permittee). Effective December 1, 2007, for offenses committed on and after that date. We are double-checking the language in this bill to ensure that it does not have any unintended consequences for retailers.
This bill passed the House Committee on Alcoholic Beverage Control on Tuesday and has been placed on the House Calendar for Monday.
PHARMACY ISSUES
18: BUDGET WOES
The House Health and Human Services Appropriations Subcommittee rolled out their Committee Report yesterday morning at 8:30 a.m. Included in this report was a freeze of 50% for provider inflationary increases which, for the first time, includes pharmacy. The 2007-2008 Reduction is $37,305,050 and the 2008-2009 Reduction is $41,172,693. Of this amount the pharmacy reduction represents about $9 million in 2007-2008 and $12 million in 2008-2009. This reduction for pharmacy would be made up by freezing the product reimbursement from January 1, 2008 until June 30, 2008.
We met with Speaker Hackney yesterday who was pretty straight-forward in saying that he understood that pharmacies could not absorb such a cut and stay in the Medicaid business. He also said that the pharmacy issue and rest home reimbursement were the two items that he believed needed to be fixed within the Health and Human Services Budget. However, Hackney said that he could not just tell the Big Appropriations Chairs to fix the pharmacy problem without having a way to plug $9 million back into the Budget.
We are certainly not out of the woods yet but we are making progress in trying to identify the $9 million requested by Hackney to fill the budget gap and remove the cut to pharmacy.
19: INSURERS/COVER Rx IN EMERGENCIES
House Bill 748/Senate Bill 712– Representatives Rick Glazier (D-Cumberland), Marvin Lucas (D-Cumberland) and Becky Carney (D-Mecklenburg); Senator Bill Purcell (D-Scotland)
http://www.ncleg.net/Sessions/2007/Bills/House/HTML/H748v1.html
This bill would require insurers to cover extra prescriptions during a state of emergency or disaster. We have met with the bill sponsors and worked out any concerns with the bill and are satisfied with its current format. The bill passed out of the House Insurance committee on Tuesday.
20: ELECTRONIC PRESCRIPTION RECORDS
HB 1269 – Prescription Orders/Electronic Image – Representative Lucy Allen (D-Franklin)
http://www.ncleg.net/Sessions/2007/Bills/House/HTML/H1369v0.html
HB 1269 was heard in the House Health Committee on Tuesday and passed unanimously. The bill now goes to the House floor for consideration and is on Monday night's House calendar. Current law requires every pharmacist-manager of a pharmacy to maintain, for a minimum of three years, the original of every prescription order and refill compounded or dispensed at the pharmacy - except for prescription orders recorded in a patient's medical record. This NCRMA initiated bill allows a pharmacy to comply with this requirement by maintaining an electronic image of a prescription order or refill in lieu of a hard copy.
21: DIABETES MANAGEMENT LEGISLATION
HB 1904: Diabetes Self-Management/Reimbursement, Sponsored by Representative Lucy Allen
http://www.ncleg.net/Sessions/2007/Bills/House/HTML/H1904V1.html
We have continued to work with Representative Lucy Allen (D-Franklin) on a house bill to extend Diabetes Self-Management Education (DSME) coverage to NC Medicaid Beneficiaries when a program is ADA accredited. Currently, reimbursement is contingent upon outpatient training services being provided “incident to” the physician. Diabetes management programs are a cost-saver by reducing Hemoglobin A1c, blood pressure, weight and increased compliance to preventative care. The bill was filed this week and has been referred to the House health committee.
22: MINORITY PHARMACIST RECRUITMENT
HB 1297 – Representatives Bobby England (D-Rutherford), Linda Coleman (D-Wake) and Alice Underhill (D-Craven)
FUNDS/MIN. RECRUITMENT PHARMACY SCHOOLS
http://www.ncleg.net/Sessions/2007/Bills/House/HTML/H1297v1.html
This bill was filed at our request as currently, only 4% of North Carolina 's pharmacists are minorities and 40 counties lack any minority pharmacist. We were excited to see that the House appropriations subcommittee on Health and Human Services has, to this point, included $275,000 in the budget for 2007-08 from the Health and Wellness Trust Fund to continue this pilot program. We will be working to keep this in the House budget as it moves through debate next week.
23: ELECTRONIC PDAs FOR MEDICAID – GOLD STANDARD
In an effort to fight off a reimbursement cut two years ago, NCRMA and the Association of Community Pharmacists pushed for legislation to put PDAs with Medicaid patient information in the hands of 1,000 doctors. The Gold Standard program saved the State of Florida over $8 million in the first year through reduced prescriptions, avoided drug interactions and preventing Medicaid fraud.
NCRMA and the Association of Community Pharmacists were successful in getting a special provision requiring the Medicaid Department to implement such a program but unfortunately the program was hung up in state government bureaucracy and still has not been implemented. Just this week the State of Florida announced cost-savings of $28 million for the 2006 fiscal year.
NCRMA provided this information to Senate and House Appropriations Leaders and demonstrated that money continued to be left on the table and that the failure to implement this program was also hindering the advance of electronic prescribing in North Carolina . A number of these legislators could not believe that this program had not been put in place and were investigating how to get this program jumpstarted with the Medicaid Department.
This week, the House Appropriations subcommittee on Health and Human Services included a budget provision directing the Department of Health and Human Services, Division of Medical Assistance, in consultation with the Community Care of NC (CCNC) program, to implement and Electronic Quality Prescription Management program for prescription drugs through the use of personal data assistance (PDA) technology. Language states that the Division may designate CCNC through the Office of Rural Health and Community Care as the lead program to implement this section and shall assist CCNC by providing cost containment funds to purchase PDAs, connectivity and software, and for other related costs.
Thank you for allowing us to continue to represent the retail perspective before the North Carolina General Assembly since 1902.
Until next week.
Fran Preston (franp@ncrma.org)
Andy Ellen (andye@ncrma.org)
Elizabeth Dalton (elizabethd@ncrma.org)
Lindsey Kueffner (lindseyk@ncrma.org)
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