To amend sections 127.16, 2921.13, 5110.01, 5110.02, 5110.03, 5110.05, 5110.08, 5110.09, 5110.12, 5110.13, 5110.14, 5110.15, 5110.16, 5110.17, 5110.18, 5110.19, 5110.21, 5110.23, 5110.26, 5110.27, 5110.29, 5110.32, 5110.33, 5110.35, 5110.352, 5110.353, 5110.354, 5110.39, 5110.55, 5110.56, 5110.57, 5110.58, and 5110.59; to enact section 5110.06 and new section 5110.11; and to repeal sections 5110.10, 5110.11, 5110.22, 5110.28, and 5110.351 of the Revised Code to modify the Ohio's Best Rx program.

Section 1. That sections 127.16, 2921.13, 5110.01, 5110.02, 5110.03, 5110.05, 5110.08, 5110.09, 5110.12, 5110.13, 5110.14, 5110.15, 5110.16, 5110.17, 5110.18, 5110.19, 5110.21, 5110.23, 5110.26, 5110.27, 5110.29, 5110.32, 5110.33, 5110.35, 5110.352, 5110.353, 5110.354, 5110.39, 5110.55, 5110.56, 5110.57, 5110.58, and 5110.59 be amended and section 5110.06 and new section 5110.11 of the Revised Code be enacted to read as follows:

Sec. 127.16.  (A) Upon the request of either a state agency or the director of budget and management and after the controlling board determines that an emergency or a sufficient economic reason exists, the controlling board may approve the making of a purchase without competitive selection as provided in division (B) of this section.

(B) Except as otherwise provided in this section, no state agency, using money that has been appropriated to it directly, shall:

(1) Make any purchase from a particular supplier, that would amount to fifty thousand dollars or more when combined with both the amount of all disbursements to the supplier during the fiscal year for purchases made by the agency and the amount of all outstanding encumbrances for purchases made by the agency from the supplier, unless the purchase is made by competitive selection or with the approval of the controlling board;

(2) Lease real estate from a particular supplier, if the lease would amount to seventy-five thousand dollars or more when combined with both the amount of all disbursements to the supplier during the fiscal year for real estate leases made by the agency and the amount of all outstanding encumbrances for real estate leases made by the agency from the supplier, unless the lease is made by competitive selection or with the approval of the controlling board.

(C) Any person who authorizes a purchase in violation of division (B) of this section shall be liable to the state for any state funds spent on the purchase, and the attorney general shall collect the amount from the person.

(D) Nothing in division (B) of this section shall be construed as:

(1) A limitation upon the authority of the director of transportation as granted in sections 5501.17, 5517.02, and 5525.14 of the Revised Code;

(2) Applying to medicaid provider agreements under Chapter 5111. of the Revised Code or payments or provider agreements under the disability medical assistance program established under Chapter 5115. of the Revised Code;

(3) Applying to the purchase of examinations from a sole supplier by a state licensing board under Title XLVII of the Revised Code;

(4) Applying to entertainment contracts for the Ohio state fair entered into by the Ohio expositions commission, provided that the controlling board has given its approval to the commission to enter into such contracts and has approved a total budget amount for such contracts as agreed upon by commission action, and that the commission causes to be kept itemized records of the amounts of money spent under each contract and annually files those records with the clerk of the house of representatives and the clerk of the senate following the close of the fair;

(5) Limiting the authority of the chief of the division of mineral resources management to contract for reclamation work with an operator mining adjacent land as provided in section 1513.27 of the Revised Code;

(6) Applying to investment transactions and procedures of any state agency, except that the agency shall file with the board the name of any person with whom the agency contracts to make, broker, service, or otherwise manage its investments, as well as the commission, rate, or schedule of charges of such person with respect to any investment transactions to be undertaken on behalf of the agency. The filing shall be in a form and at such times as the board considers appropriate.

(7) Applying to purchases made with money for the per cent for arts program established by section 3379.10 of the Revised Code;

(8) Applying to purchases made by the rehabilitation services commission of services, or supplies, that are provided to persons with disabilities, or to purchases made by the commission in connection with the eligibility determinations it makes for applicants of programs administered by the social security administration;

(9) Applying to payments by the department of job and family services under section 5111.13 of the Revised Code for group health plan premiums, deductibles, coinsurance, and other cost-sharing expenses;

(10) Applying to any agency of the legislative branch of the state government;

(11) Applying to agreements or contracts entered into under section 5101.11, 5101.20, 5101.201, 5101.21, or 5101.214 of the Revised Code;

(12) Applying to purchases of services by the adult parole authority under section 2967.14 of the Revised Code or by the department of youth services under section 5139.08 of the Revised Code;

(13) Applying to dues or fees paid for membership in an organization or association;

(14) Applying to purchases of utility services pursuant to section 9.30 of the Revised Code;

(15) Applying to purchases made in accordance with rules adopted by the department of administrative services of motor vehicle, aviation, or watercraft fuel, or emergency repairs of such vehicles;

(16) Applying to purchases of tickets for passenger air transportation;

(17) Applying to purchases necessary to provide public notifications required by law or to provide notifications of job openings;

(18) Applying to the judicial branch of state government;

(19) Applying to purchases of liquor for resale by the division of liquor control;

(20) Applying to purchases of motor courier and freight services made in accordance with department of administrative services rules;

(21) Applying to purchases from the United States postal service and purchases of stamps and postal meter replenishment from vendors at rates established by the United States postal service;

(22) Applying to purchases of books, periodicals, pamphlets, newspapers, maintenance subscriptions, and other published materials;

(23) Applying to purchases from other state agencies, including state-assisted institutions of higher education;

(24) Limiting the authority of the director of environmental protection to enter into contracts under division (D) of section 3745.14 of the Revised Code to conduct compliance reviews, as defined in division (A) of that section;

(25) Applying to purchases from a qualified nonprofit agency pursuant to sections 125.60 to 125.6012 or 4115.31 to 4115.35 of the Revised Code;

(26) Applying to payments by the department of job and family services to the United States department of health and human services for printing and mailing notices pertaining to the tax refund offset program of the internal revenue service of the United States department of the treasury;

(27) Applying to contracts entered into by the department of mental retardation and developmental disabilities under sections 5123.18, 5123.182, and 5123.199 of the Revised Code;

(28) Applying to payments made by the department of mental health under a physician recruitment program authorized by section 5119.101 of the Revised Code;

(29) Applying to contracts entered into with persons by the director of commerce for unclaimed funds collection and remittance efforts as provided in division (F) of section 169.03 of the Revised Code. The director shall keep an itemized accounting of unclaimed funds collected by those persons and amounts paid to them for their services.

(30) Applying to purchases made by a state institution of higher education in accordance with the terms of a contract between the vendor and an inter-university purchasing group comprised of purchasing officers of state institutions of higher education;

(31) Applying to the department of job and family services' purchases of health assistance services under the children's health insurance program part I provided for under section 5101.50 of the Revised Code or the children's health insurance program part II provided for under section 5101.51 of the Revised Code;

(32) Applying to payments by the attorney general from the reparations fund to hospitals and other emergency medical facilities for performing medical examinations to collect physical evidence pursuant to section 2907.28 of the Revised Code;

(33) Applying to contracts with a contracting authority or administrative receiver under division (B) of section 5126.056 of the Revised Code;

(34) Applying to reimbursements paid to the United States department of veterans affairs for pharmaceutical and patient supply purchases made on behalf of the Ohio veterans' home agency;

(35) Applying to agreements the department of job and family services enters entered into with terminal distributors of dangerous drugs under section 5110.12 of the Revised Code.

(E) Notwithstanding division (B)(1) of this section, the cumulative purchase threshold shall be seventy-five thousand dollars for the departments of mental retardation and developmental disabilities, mental health, rehabilitation and correction, and youth services.

(F) When determining whether a state agency has reached the cumulative purchase thresholds established in divisions (B)(1), (B)(2), and (E) of this section, all of the following purchases by such agency shall not be considered:

(1) Purchases made through competitive selection or with controlling board approval;

(2) Purchases listed in division (D) of this section;

(3) For the purposes of the thresholds of divisions (B)(1) and (E) of this section only, leases of real estate.

(G) As used in this section, "competitive selection," "purchase," "supplies," and "services" have the same meanings as in section 125.01 of the Revised Code.

Sec. 2921.13.  (A) No person shall knowingly make a false statement, or knowingly swear or affirm the truth of a false statement previously made, when any of the following applies:

(1) The statement is made in any official proceeding.

(2) The statement is made with purpose to incriminate another.

(3) The statement is made with purpose to mislead a public official in performing the public official's official function.

(4) The statement is made with purpose to secure the payment of unemployment compensation; Ohio works first; prevention, retention, and contingency benefits and services; disability financial assistance; retirement benefits; economic development assistance, as defined in section 9.66 of the Revised Code; or other benefits administered by a governmental agency or paid out of a public treasury.

(5) The statement is made with purpose to secure the issuance by a governmental agency of a license, permit, authorization, certificate, registration, release, or provider agreement.

(6) The statement is sworn or affirmed before a notary public or another person empowered to administer oaths.

(7) The statement is in writing on or in connection with a report or return that is required or authorized by law.

(8) The statement is in writing and is made with purpose to induce another to extend credit to or employ the offender, to confer any degree, diploma, certificate of attainment, award of excellence, or honor on the offender, or to extend to or bestow upon the offender any other valuable benefit or distinction, when the person to whom the statement is directed relies upon it to that person's detriment.

(9) The statement is made with purpose to commit or facilitate the commission of a theft offense.

(10) The statement is knowingly made to a probate court in connection with any action, proceeding, or other matter within its jurisdiction, either orally or in a written document, including, but not limited to, an application, petition, complaint, or other pleading, or an inventory, account, or report.

(11) The statement is made on an account, form, record, stamp, label, or other writing that is required by law.

(12) The statement is made in connection with the purchase of a firearm, as defined in section 2923.11 of the Revised Code, and in conjunction with the furnishing to the seller of the firearm of a fictitious or altered driver's or commercial driver's license or permit, a fictitious or altered identification card, or any other document that contains false information about the purchaser's identity.

(13) The statement is made in a document or instrument of writing that purports to be a judgment, lien, or claim of indebtedness and is filed or recorded with the secretary of state, a county recorder, or the clerk of a court of record.

(14) The statement is made with purpose to obtain an Ohio's best Rx program enrollment card under section 5110.09 of the Revised Code or a payment from the department of job and family services under section 5110.17 of the Revised Code.

(15) The statement is made in an application filed with a county sheriff pursuant to section 2923.125 of the Revised Code in order to obtain or renew a license to carry a concealed handgun or is made in an affidavit submitted to a county sheriff to obtain a temporary emergency license to carry a concealed handgun under section 2923.1213 of the Revised Code.

(16) The statement is required under section 5743.72 of the Revised Code in connection with the person's purchase of cigarettes or tobacco products in a delivery sale.

(B) No person, in connection with the purchase of a firearm, as defined in section 2923.11 of the Revised Code, shall knowingly furnish to the seller of the firearm a fictitious or altered driver's or commercial driver's license or permit, a fictitious or altered identification card, or any other document that contains false information about the purchaser's identity.

(C) No person, in an attempt to obtain a license to carry a concealed handgun under section 2923.125 of the Revised Code, shall knowingly present to a sheriff a fictitious or altered document that purports to be certification of the person's competence in handling a handgun as described in division (B)(3) of section 2923.125 of the Revised Code.

(D) It is no defense to a charge under division (A)(6) of this section that the oath or affirmation was administered or taken in an irregular manner.

(E) If contradictory statements relating to the same fact are made by the offender within the period of the statute of limitations for falsification, it is not necessary for the prosecution to prove which statement was false but only that one or the other was false.

(F)(1) Whoever violates division (A)(1), (2), (3), (4), (5), (6), (7), (8), (10), (11), (13), (14), or (16) of this section is guilty of falsification, a misdemeanor of the first degree.

(2) Whoever violates division (A)(9) of this section is guilty of falsification in a theft offense. Except as otherwise provided in this division, falsification in a theft offense is a misdemeanor of the first degree. If the value of the property or services stolen is five hundred dollars or more and is less than five thousand dollars, falsification in a theft offense is a felony of the fifth degree. If the value of the property or services stolen is five thousand dollars or more and is less than one hundred thousand dollars, falsification in a theft offense is a felony of the fourth degree. If the value of the property or services stolen is one hundred thousand dollars or more, falsification in a theft offense is a felony of the third degree.

(3) Whoever violates division (A)(12) or (B) of this section is guilty of falsification to purchase a firearm, a felony of the fifth degree.

(4) Whoever violates division (A)(15) or (C) of this section is guilty of falsification to obtain a concealed handgun license, a felony of the fourth degree.

(G) A person who violates this section is liable in a civil action to any person harmed by the violation for injury, death, or loss to person or property incurred as a result of the commission of the offense and for reasonable attorney's fees, court costs, and other expenses incurred as a result of prosecuting the civil action commenced under this division. A civil action under this division is not the exclusive remedy of a person who incurs injury, death, or loss to person or property as a result of a violation of this section.

Sec. 5110.01.  As used in this chapter:

(A) "Administrative fee" means the amount specified in rules adopted under division (G) of section 5110.35 of the Revised Code.

(B) "Children's health insurance program" means the children's health insurance program part I and part II established under sections 5101.50 to 5101.5110 of the Revised Code.

(C)(B) "Disability medical assistance program" means the program established under section 5115.10 of the Revised Code.

(D)(C) "Medicaid program" or "medicaid" means the medical assistance program established under Chapter 5111. of the Revised Code.

(E)(D) "National drug code number" means the number registered for a drug pursuant to the listing system established by the United States food and drug administration under the "Drug Listing Act of 1972," 86 Stat. 559, 21 U.S.C. 360, as amended.

(F) "Ohio's best Rx program administrator" means the entity, if any, the department of job and family services contracts with pursuant to section 5110.10 of the Revised Code to perform administrative functions of the Ohio's best Rx program and to offer the mail order system through which Ohio's best Rx program participants may obtain drugs by mail.

(G) "Ohio's best Rx program applicant" or "applicant" means an individual who signs an application for the Ohio's best Rx program and submits it to the department of job and family services, or the Ohio's best Rx program administrator, for a determination of eligibility for the program.

(H)(E) "Ohio's best Rx program participant" or "participant" means an individual determined eligible for the Ohio's best Rx program and included under a valid Ohio's best Rx program enrollment card.

(I)(F) "Ohio's best Rx program price" means the price a participating terminal distributor is to charge, as determined under section 5110.14 of the Revised Code, that an Ohio's best Rx program participant is to be charged for a drug included in the Ohio's best Rx program as determined under section 5110.14 of the Revised Code. "Ohio's best Rx program price" does not include either of the following:

(1) The In the case of a drug dispensed by a participating terminal distributor, the amount of the professional fee, if any, the participating terminal distributor adds to the Ohio's best Rx program price pursuant to an agreement entered into under section 5110.12 of the Revised Code;

(2) The In the case of a drug dispensed by a participating terminal distributor or the drug mail order system included in the program pursuant to section 5110.11 of the Revised Code, the amount of the administrative fee, if any, the department of job and family services reports to the participating terminal distributor determines in rules adopted under section 5110.29 5110.35 of the Revised Code.

(J)(G) "Participating manufacturer" means a drug manufacturer participating in the Ohio's best Rx program pursuant to a rebate manufacturer agreement entered into under section 5110.21 of the Revised Code.

(K)(H) "Participating terminal distributor" means a terminal distributor of dangerous drugs participating in the Ohio's best Rx program pursuant to an agreement entered into with the department of job and family services under section 5110.12 of the Revised Code.

(L)(I) "Per unit price," with regard to a state health benefit plan or state retirement system health benefit plan, means the total amount paid to a terminal distributor of dangerous drugs under a state health benefit plan or state retirement system health benefit the plan for one unit of a drug covered by the plan, after the plan discounts or otherwise reduces the amount to be paid to the terminal distributor. "Per unit price" does not include any amount paid to the terminal distributor of dangerous drugs under the plan as an administrative fee for dispensing the drug, but includes both of the following:

(1) The amount that the state health benefit plan or state retirement system health benefit plan, or other government entity or person authorized to make the payment on behalf of the plan, pays to the terminal distributor of dangerous drugs;

(2) The amount that the beneficiary of the state health benefit plan or state retirement system health benefit plan pays to the terminal distributor of dangerous drugs in the form of a copayment, coinsurance, or other cost-sharing charge.

(M)(J) "Per unit rebate," with regard to a state health benefit plan or state retirement system health benefit plan, means all rebates, discounts, formulary fees, administrative fees, and other allowances a drug manufacturer pays to the plan, or other government entity or person authorized to receive all or part of such payments, for a drug during a calendar year, divided by the total number of units of that drug dispensed under the plan during the same calendar year.

(N) "Rebate administration percentage" means the percentage specified in rules adopted under division (K) of section 5110.35 of the Revised Code.

(O) "Rebate agreement" means an agreement under section 5110.21 of the Revised Code between the department of job and family services and a drug manufacturer.

(P)(K) "State health benefit plan" means a program of health care benefits offered through the Ohio med preferred provider organization, or a successor entity selected by the state, to which either of the following apply applies:

(1) It is provided by a collective bargaining agreement authorized by division (A)(4) of section 4117.03 of the Revised Code.

(2) It is offered by the department of administrative services to state employees in accordance with section 124.81 or 124.82 of the Revised Code.

(Q)(L) "State retirement system" means all of the following: the public employees retirement system, state teachers retirement system, school employees retirement system, Ohio police and fire pension fund, and state highway patrol retirement system.

(R)(M) "State retirement system health benefit plan" means a plan of health care benefits offered by a state retirement system under section 145.58, 742.45, 3307.39, 3309.69, or 5505.28 of the Revised Code.

(S)(N) "Terminal distributor of dangerous drugs" has the same meaning as in section 4729.01 of the Revised Code.

(T)(O) "Third-party payer" has the same meaning as in section 3901.38 of the Revised Code.

(U)(P) "Trade secret" has the same meaning as in section 1333.61 of the Revised Code.

(V)(Q) "Usual and customary charge" means the amount a participating terminal distributor or the Ohio's best Rx program administrator drug mail order system included in the Ohio's best Rx program pursuant to section 5110.11 of the Revised Code charges for when a drug included in the program to is purchased by an individual who does not receive a discounted price for the drug pursuant to any drug discount program, including the Ohio's best Rx program, a prescription drug discount card program established under section 173.061 of the Revised Code, or a pharmacy assistance program established by any person or government entity, and for whom no third-party payer or program funded in whole or part with state or federal funds is responsible for all or part of the cost of the drug the distributor dispenses to the individual.

Sec. 5110.02. (A) There is hereby established the Ohio's best Rx program. Except as provided in division (B) of this section 5110.10 of the Revised Code, the department of job and family services shall administer the program.

(B)(1) The department may enter into a contract with any person under which the person serves as the administrator of the Ohio's best Rx program. Before entering into a contract for a program administrator, the department shall issue a request for proposals from persons seeking to be considered. The department shall develop a process to be used in issuing the request for proposals, receiving responses to the request, and evaluating the responses on a competitive basis. In accordance with that process, the department shall select the person to be awarded the contract.

(2) Subject to divisions (B)(4) and (5) of this section, the department may delegate to the person awarded the contract any of the department's powers or duties specified in this chapter or any other provision of the Revised Code pertaining to the Ohio's best Rx program. The terms of the contract shall specify the extent to which the powers or duties are delegated to the program administrator.

(3) In exercising powers or performing duties delegated under the contract, the program administrator is subject to the same provisions of this chapter or other provisions of the Revised Code that grant the powers or duties to the department, as well as any limitations or restrictions that are applicable to or associated with those powers or duties. Wherever the department is referred to in this chapter or another provision of the Revised Code relative to a power or duty delegated to the program administrator, both of the following are the case:

(a) If the department has delegated the power or duty in whole to the program administrator, the reference to the department is, instead, a reference to the administrator.

(b) If the department retains any part of the power or duty that is delegated to the program administrator, the reference to the department is a reference to both the department and the administrator.

(4) The terms of a contract for a program administrator shall include provisions for offering the drug mail order system included in the Ohio's best Rx program pursuant to section 5110.11 of the Revised Code. The terms of the contract may permit the administrator to offer the drug mail order system by contracting with another person.

(5) The department shall not delegate to a program administrator authority to do any of the following:

(a) Enter into contracts under this section other than a contract to offer a drug mail order system;

(b) Adopt rules under section 5110.35 or 5110.36 of the Revised Code;

(c) Employ an ombudsperson pursuant to section 5110.40 of the Revised Code.

Sec. 5110.03.  (A) Except as provided in division (B) of this section, a drug shall be included in the Ohio's best Rx program if the drug is covered by a state health benefit plan or state retirement system health benefit plan or is covered by included in a rebate manufacturer agreement entered into under section 5110.21 of the Revised Code.

(B) The department of job and family services may exclude from the program a drug covered by a state health benefit plan or state retirement system health benefit plan if the plan receives a rebate for the drug from the manufacturer but the drug is not covered by included in a rebate manufacturer agreement entered into under section 5110.21 of the Revised Code.

Sec. 5110.05. (A) To be eligible for the Ohio's best Rx program, an individual must meet all of the following requirements at the time of application or reapplication for the program:

(1) Be The individual must be a resident of this state;.

(2) Have Either of the following must be the case:

(a) The individual has family income, as determined under rules adopted pursuant to section 5110.35 of the Revised Code, that does not exceed two three hundred fifty per cent of the federal poverty guidelines, as revised annually by the United States department of health and human services in accordance with section 673(2) of the "Omnibus Budget Reconciliation Act of 1981," 95 Stat. 511, 42 U.S.C. 9902, as amended, or be;

(b) The individual is sixty years of age or older;.

(3) Not Except as provided in division (B) of this section, the individual must not have coverage for outpatient prescription drug coverage drugs paid for in whole or in part by any of the following:

(a) A third-party payer;

(b) An employer;

(c) The medicaid program;

(c)(d) The children's health insurance program;

(d)(e) The disability medical assistance program;

(e)(f) Another health plan or pharmacy assistance program that uses state or federal funds to pay part or all of the cost of the individual's outpatient prescription drugs, other than a prescription drug discount card program established under section 173.061 of the Revised Code.

(4) Not The individual must not have had coverage for outpatient prescription drug coverage drugs paid for by any of the entities or programs specified in division (A)(3) of this section during any of the four months preceding the month in which the application or reapplication for the Ohio's best Rx program is made, unless any of the following applies:

(a) The individual is sixty years of age or older.

(b) The third-party payer or employer that paid all or part of for the coverage filed for bankruptcy under federal bankruptcy laws.

(c) The individual is no longer eligible for coverage provided through a retirement plan subject to protection under the "Employee Retirement Income Security Act of 1974," 88 Stat. 832, 29 U.S.C. 1001, as amended.

(d) The individual is no longer eligible for the medicaid program, children's health insurance program, or disability medical assistance program.

(e) The individual is either temporarily or permanently discharged from employment due to a business reorganization.

(B) Application and annual reapplication for the Ohio's best Rx program shall be made in accordance with rules adopted under section 5110.35 of the Revised Code on a form prescribed in those rules. An individual may apply or reapply on behalf of the individual and the individual's spouse and children. The guardian or custodian of an individual may apply or reapply on behalf of the individual An individual is not subject to division (A)(3) of this section if the individual has coverage for outpatient drugs paid for in whole or in part by any of the following:

(1) A prescription drug discount card program established under section 173.061 of the Revised Code;

(2) The workers' compensation program;

(3) A medicare prescription drug plan offered pursuant to the "Medicare Prescription Drug, Improvement, and Modernization Act of 2003," 117 Stat. 2071, 42 U.S.C. 1395w-101, as amended, but only if all of the following are the case with respect to the particular drug being purchased through the Ohio's best Rx program:

(a) The individual is responsible for the full cost of the drug.

(b) The drug is not subject to a rebate from the manufacturer under the individual's medicare prescription drug plan.

(c) The manufacturer of the drug has agreed to the Ohio's best Rx program's inclusion of individuals who have coverage through a medicare prescription drug plan.

Sec. 5110.06. Application and annual reapplication for the Ohio's best Rx program shall be made in accordance with rules adopted by the department of job and family services under section 5110.35 of the Revised Code. An individual may apply or reapply on behalf of the individual and the individual's spouse and children. The guardian or custodian of an individual may apply or reapply on behalf of the individual.

When submitting an application, the applicant shall include the information and documentation specified in the department's rules as necessary to verify eligibility for the program. The application may be submitted on a paper form prescribed and supplied by the department or pursuant to any other application method the department makes available for the program, including methods that permit an individual to apply by telephone or through the internet.

An applicant shall attest that the information and documentation the applicant submits with an application is accurate to the best knowledge and belief of the applicant. In the case of a paper application form, the applicant's signature shall be used to certify that the applicant has attested to the accuracy of the information and documentation. In the case of other application methods, the application certification process specified in the department's rules shall be used to certify that the applicant has attested to the accuracy of the information and documentation.

The department shall inform each applicant that knowingly making a false statement in an application is falsification under section 2921.13 of the Revised Code, a misdemeanor of the first degree. In the case of a paper application form, the department shall provide the information by including on the form a statement printed in bold letters.

Sec. 5110.08. On receipt of applications and annual reapplications, the department of job and family services shall make eligibility determinations for the Ohio's best Rx program in accordance with procedures established in rules adopted under section 5110.35 of the Revised Code. Each determination that an individual is eligible is valid for one year beginning on a date determined in accordance with the eligibility determination procedures. The beginning date may not precede the date on which the individual's eligibility is determined. Annual reapplication may be made under division (B) of section 5110.05 5110.06 of the Revised Code if the individual seeks to continue to participate in the program after the date eligibility would otherwise end.

An eligibility determination under this section may not be appealed under Chapter 119., section 5101.35, or any other provision of the Revised Code.

Sec. 5110.09. (A) The department of job and family services shall issue Ohio's best Rx program enrollment cards to or on behalf of individuals determined eligible to participate. One enrollment card may cover each member of a family determined eligible to participate. The card is valid only during the period each individual covered by the card is eligible to participate. The card shall be presented to a participating terminal distributor each

(B) Each time a drug included in the program is purchased under the program, the eligibility of the participant for whom the drug is dispensed shall be confirmed through the department. If the drug is being purchased from a participating terminal distributor and the participant's enrollment card is available for presentation at the time of the purchase, the purchaser shall present the enrollment card to the participating terminal distributor.

Sec. 5110.11. (A) For purposes of making drugs included in the Ohio's best Rx program available to participants by mail, the department of job and family services shall include a drug mail order system within the program. Not more than one drug mail order system shall be included in the program. The program's drug mail order system shall be provided in accordance with rules adopted under section 5110.35 of the Revised Code.

(B)(1) When a drug included in the program is dispensed to a participant through the program's drug mail order system, the amount the participant is charged for the drug shall be the lesser of the following:

(a) The sum of the Ohio's best Rx program price applicable to the system and the administrative fee, if any, in an amount determined in accordance with rules adopted under section 5110.35 of the Revised Code;

(b) The system's usual and customary charge.

(2) A participant shall not be charged a professional fee when a drug included in the program is dispensed to the participant through the program's drug mail order system.

Sec. 5110.12.  A (A) For purposes of making drugs included in the Ohio's best Rx program available to participants from terminal distributors of dangerous drugs other than the drug mail order system included in the program pursuant to section 5110.11 of the Revised Code, the department of job and family services shall enter into agreements under this section with terminal distributors of dangerous drugs. Any terminal distributor of dangerous drugs may enter into an agreement with the department of job and family services to participate in the Ohio's best Rx program for purposes of dispensing drugs pursuant to this section. Before

Before entering into an agreement under this section with a terminal distributor, the department shall provide the terminal distributor with a formula that allows the terminal distributor to calculate the price of each drug included in the program, a statistically valid sampling of drug prices that includes the prices of not less than two branded and two generic drugs from each category of drugs included in the program, or the current Ohio's best Rx program price for each drug included in the program.

(B) An agreement entered into under this section shall do all of the following:

(A)(1) Except as provided in division (C)(B)(3) of this section, be in effect for not less than one year;

(B)(2) Specify the dates that the agreement is to begin and end;

(C)(3) Permit the participating terminal distributor to terminate the agreement before the date the agreement would otherwise end as specified pursuant to division (B)(2) of this section by providing the department notice of early termination at least thirty days before the effective date of the early termination;

(D)(4) Require that the participating terminal distributor charge an Ohio's best Rx program participant for each drug included in the program the lesser of (1)(a) the sum of the Ohio's best Rx program price as determined under section 5110.14 of the Revised Code applicable to participating terminal distributors, the professional fee permitted under division (E)(B)(5) of this section, if any, and the administrative fee under division (F)(B)(6) of this section, if any, or (2)(b) the terminal distributor's usual and customary charge;

(E)(5) Permit the participating terminal distributor to add to the Ohio's best Rx program price a professional fee in an amount not to exceed, except as provided in rules adopted under section 5110.35 of the Revised Code, three dollars;

(F)(6) Require the participating terminal distributor to add to the Ohio's best Rx program price an administrative fee, in an amount determined in accordance with rules adopted under section 5110.35 of the Revised Code, for each transaction in which a quantity of the drug is dispensed if an administrative fee is required by those rules;

(G)(7) Require the participating terminal distributor to disclose to each participant the amount the participant saves under the program as determined in accordance with section 5110.15 of the Revised Code;

(H)(8) Require the participating terminal distributor to submit a claim to the department under section 5110.16 of the Revised Code for each sale of a drug to a participant;

(I)(9) Permit the participating terminal distributor to deliver drugs to Ohio's best Rx program participants by mail, but not by using a drug mail order system operated in the same manner as the system included in the Ohio's best Rx program pursuant to section 5110.11 of the Revised Code.

Sec. 5110.13. The department of job and family services may not prohibit a A terminal distributor of dangerous drugs shall not be prohibited from participating in any other program the department administers or any network of health care providers on the basis that the terminal distributor has not entered into an agreement under section 5110.12 of the Revised Code to participate in the Ohio's best Rx program.

No entity under contract with the department under section 5110.10 of the Revised Code may prohibit a terminal distributor of dangerous drugs from participating in a program or network the entity administers or operates on the basis that the terminal distributor has not entered into an agreement under section 5110.12 of the Revised Code.

Sec. 5110.14.  The Ohio's best Rx program price for a drug included in the program, as described in section 5110.03 of the Revised Code, shall be determined as follows:

(A) When the drug is dispensed through a participating terminal distributor, the price shall be determined by multiplying the number of units of the drug a participating terminal distributor dispenses dispensed to a participant by whichever of the following is applicable:

(A)(1) If the drug is not subject to included in a rebate manufacturer agreement entered into under section 5110.21 of the Revised Code, the amount computed under division (A)(1) or (2) of section 5110.27 of the Revised Code, as applicable;

(B)(2) If the drug is subject to included in a rebate manufacturer agreement entered into under section 5110.21 of the Revised Code, the amount computed under division (C) of section 5110.27 of the Revised Code.

(B) When the drug is dispensed through the drug mail order system included in the program pursuant to section 5110.11 of the Revised Code, the price shall be an amount not exceeding the price that would be charged for the same drug pursuant to division (A)(1) or (2) of this section. The amount that may be charged under this division is subject to the rules adopted under section 5110.35 of the Revised Code governing the drug mail order system.

Sec. 5110.15. The amount that an Ohio's best Rx program participant saves under the program on a transaction for a drug included in the program shall be determined by subtracting the sum of the following from the usual and customary charge for that quantity of the drug the participating terminal distributor or Ohio's best Rx program administrator dispenses dispensed to the participant by the participating terminal distributor or the drug mail order system included in the program pursuant to section 5110.11 of the Revised Code:

(A) The Ohio's best Rx program price multiplied by the number of units of the drug dispensed that applies to the transaction;

(B) The When the transaction occurs through a participating terminal distributor rather than the program's drug mail order system, the professional fee, if any, the distributor or administrator is permitted to charge pursuant to an agreement entered into under section 5110.12 of the Revised Code or a contract under section 5110.10 of the Revised Code;

(C) The administrative fee, if any, the department of job and family services reports to the distributor or administrator specifies in rules adopted under section 5110.29 5110.35 of the Revised Code.

Sec. 5110.16. A participating terminal distributor or the Ohio's best Rx program administrator shall submit a claim shall be submitted to the department of job and family services for each drug dispensed to an Ohio's best Rx program participant. The participating terminal distributor or the drug mail order system included in the program pursuant to section 5110.11 of the Revised Code that dispensed the drug shall submit the claim not later than thirty days after the drug is dispensed. The claim shall be submitted in accordance with the electronic method provided for in rules adopted under section 5110.35 of the Revised Code.

The claim shall specify all of the following:

(A) The prescription number of the participant's prescription under which the drug is dispensed to the participant;

(B) The name of, and national drug code number for, the drug dispensed to the participant;

(C) The number of units of the drug dispensed to the participant;

(D) The amount the distributor or administrator charged the participant was charged for the drug;

(E) The date that the distributor or administrator dispensed the drug was dispensed to the participant;

(F) Any additional information required by rules adopted under section 5110.35 of the Revised Code.

Sec. 5110.17. (A) In accordance with rules adopted under section 5110.35 of the Revised Code and subject to section 5110.19 of the Revised Code, the department of job and family services shall pay a participating terminal distributor or the Ohio's best Rx program administrator make payments under the Ohio's best Rx program for complete and timely claims submitted under section 5110.16 of the Revised Code for drugs included in the program that are covered by also included in a rebate manufacturer agreement entered into under section 5110.21 of the Revised Code. The payment for a complete and timely claim shall be made by a date that is not later than two weeks after the claim is received by the department receives the claim from the participating terminal distributor or the drug mail order system included in the program pursuant to section 5110.11 of the Revised Code.

(B) Subject to division (D) of this section, the amount to be paid for a claim shall be determined as follows:

(1) Multiply the rebate manufacturer payment amount for the national drug code number for the drug for which the claim is made, as agreed to under division (B)(4)(a)(D)(1) of section 5110.21 of the Revised Code or computed under division (B) of section 5110.27 of the Revised Code, as applicable, by the number of units of the drug dispensed to the Ohio's best Rx program participant;

(2) If rules adopted under section 5110.35 of the Revised Code require that program participants be charged an administrative fee was charged, for each transaction in which a quantity of the drug was dispensed, subtract from the amount computed under division (B)(1) of this section the administrative fee amount specified in those rules adopted under section 5110.35 of the Revised Code.

(C) The department may combine the claims from submitted by a participating terminal distributor or the administrator program's drug mail order system to make aggregate payments under this section to the distributor or administrator system.

(D) If the total of the amounts computed under division (B) of this section for any period for which payments are due is a negative number, the participating terminal distributor or administrator the program's drug mail order system that submitted the claims has been overpaid for the claims submitted under section 5110.16 of the Revised Code. When there is an overpayment, the department shall reduce future payments to the terminal distributor or administrator made under this section to the distributor or system or collect an amount from the terminal distributor or administrator system sufficient to reimburse the department for the overpayment.

Sec. 5110.18.  Neither the department of job and family services nor the Ohio's best Rx program administrator may charge a participating terminal distributor nor the drug mail order system included in the Ohio's best Rx program pursuant to section 5110.11 of the Revised Code may be charged by the department of job and family services for the submission or processing of a claim under sections 5110.16 and 5110.17 of the Revised Code.

Sec. 5110.19. The department of job and family services may not make a payment under section 5110.17 of the Revised Code for a claim submitted under section 5110.16 of the Revised Code if any of the following are the case:

(A) The claim is submitted by either a terminal distributor of dangerous drugs that is neither not a participating terminal distributor nor the Ohio's best Rx program administrator or a drug mail order system that is not the system included in the Ohio's best Rx program pursuant to section 5110.11 of the Revised Code.

(B) The claim is for a drug that is not included in the program.

(C) The claim is for a drug included in the program but the drug is dispensed to an individual who is not covered by a valid Ohio's best Rx program enrollment card.

(D) A person or government entity has paid the participating terminal distributor or the administrator program's drug mail order system through any other prescription drug coverage program or prescription drug discount program for dispensing the drug, unless the payment is reimbursement for redeeming a coupon or is an amount directly paid by a drug manufacturer to the terminal distributor or system for dispensing drugs to residents of a long-term care facility.

Sec. 5110.21.  (A) A For purposes of participating in the Ohio's best Rx program, any drug manufacturer may enter into a rebate an agreement under this section with the department of job and family services regarding drugs it manufactures. The agreement shall specify the time it is to be in effect, which shall be not less than one year from the date the agreement is entered into.

(B) The agreement shall do all of the following:

(1) Specify which of the manufacturer's drugs are included in the agreement;

(2) Permit the department to remove a drug from the agreement in the event of a dispute over the drug's utilization;

(3) Require that the manufacturer make a rebate payment to the department in an amount that complies with division (D) of this section for each drug specified under division (B)(1) of this section included in the agreement that is dispensed to an Ohio's best Rx program participant;

(4)(a) Require that the per unit rebate be in an amount equal to the greater of the following:

(i) The weighted average of the per unit rebates for the drug as computed under division (C)(1) of this section;

(ii) A per unit amount specified by the manufacturer.

(b) Require that the rebate payment for a quantity of a drug dispensed to an Ohio's best Rx participant be equal to the amount determined by multiplying the applicable per unit rebate by the number of units dispensed.

(5) Specify the intervals at which the manufacturer will report to the department amounts specified pursuant to division (B)(4)(a)(ii) of this section;

(6) Require that the manufacturer make the rebate payments to the department on a quarterly basis or in accordance with a schedule established by rules adopted under section 5110.35 of the Revised Code.

(C) For each drug included in the agreement, the agreement may establish a process for referring Ohio's best Rx program applicants to patient assistance programs operated by the manufacturer if the manufacturer agrees to refer to the Ohio's best Rx program residents of this state who apply but are ineligible for the manufacturer's patient assistance programs.

(D)(1) The manufacturer's per unit payment to the department for a drug included in the agreement shall be an amount equal to the greater of the following:

(a) The weighted average of the per unit rebates for the drug, as computed under division (E)(1) of this section;

(b) Subject to division (D)(3) of this section, a per unit amount specified by the manufacturer.

(2) The payment for a quantity of a drug dispensed to an Ohio's best Rx program participant shall be equal to the amount determined by multiplying the per unit payment applicable under division (D)(1) of this section by the number of units dispensed.

(3) In the case of an agreement under which the manufacturer specifies a per unit amount for a drug, all of the following apply:

(a) The agreement shall specify the intervals at which the manufacturer will report the per unit amount to the department.

(b) If a computation cannot be made under division (E)(1) of this section because the department has not received the necessary information to make the computation, the manufacturer shall use its best efforts to ensure that it specifies a per unit amount for the drug that is equal to or greater than its estimate of the average of the per unit rebates for the drug.

(c) If a computation is not made under division (E)(1) of this section but can be made within twelve months after the manufacturer enters into the agreement, and the computation demonstrates that the per unit amount specified by the manufacturer is less than the amount computed under division (E)(1) of this section, the manufacturer shall make an aggregate payment to the department in an amount equal to the difference between the total amount of the per unit payments that were made and the total amount that would have been paid by using the amount computed under division (E)(1) of this section. The department shall promptly notify the manufacturer of the amount owed, and the manufacturer shall make an aggregate payment of the amount owed not later than thirty days after receiving the department's notice. Aggregate manufacturer payments received under this section shall be deposited to the credit of the Ohio's best Rx program fund created by section 5110.32 of the Revised Code.

(E)(1) For the purposes of division (B)(4)(a)(i)(D)(1)(a) of this section, once each year the department shall compute the weighted average of the per unit rebates for each drug using. In making the computation, the department shall use the information available to the department from submissions under division (A)(4) of section 5110.25 of the Revised Code and the number of individuals eligible for benefits under a state health benefit plan or state retirement system health benefit plan. The computation shall be made in accordance with section 5110.28 of the Revised Code and rules adopted under section 5110.35 of the Revised Code.

(2) If no computation can be made under division (C)(E)(1) of this section, the rebate manufacturer payment for the drug shall be the amount specified under (B)(4)(a)(ii) division (D)(1)(b) of this section.

(D)(F) The department shall seek written confirmation from the centers for medicare and medicaid services that manufacturer payments under this section are exempt from the medicaid best price computation applicable under Title XIX of the "Social Security Act," 79 Stat. 286 (1965), 42 U.S.C. 1396r-8, as amended. The provisions of this section do not require a manufacturer to make a manufacturer payment that would establish the manufacturer's medicaid best price for a drug.

(G) On submission to the department by a manufacturer that has entered into a rebate an agreement under this section of a request the department considers reasonable, the department shall permit the manufacturer to audit claims submitted under section 5110.16 of the Revised Code.

Sec. 5110.23. (A) The department of job and family services shall compile both of the following:

(1) A list consisting of the name of each drug manufacturer that enters into a rebate manufacturer agreement under section 5110.21 of the Revised Code and the names of the drugs included in each rebate manufacturer agreement;

(2) A list consisting of the name of each participating terminal distributor and the name of the drug mail order system included in the Ohio's best Rx program pursuant to section 5110.11 of the Revised Code.

(B) The lists compiled under this section are public records for the purpose of section 149.43 of the Revised Code. The department shall specifically make the lists available to physicians, participating terminal distributors, and other health professionals.

Sec. 5110.26.  In submitting information about a drug under section 5110.25 of the Revised Code, the department of administrative services and each state retirement system shall do all of the following:

(A) Compute and submit information separately for For each of the drug's national drug code numbers, compute individual information or submit a formula that would permit the determination of individual information;

(B) Submit the formula, per unit price, or formula and per unit price information after each change to the formula or per unit price, unless the formula or per unit price changes more than once a week, in which case submit the formula or per unit price information at least once each week;

(C) Provide for the formula or per unit price information to reflect the formula or per unit price as most recently changed;

(D) Submit the information regarding the per unit rebate once a year and provide for the information to reflect the per unit rebate for the previous calendar year.

Sec. 5110.27.  In accordance with section 5110.28 of the Revised Code and rules adopted under section 5110.35 of the Revised Code, the department of job and family services shall do all of the following for each drug included in the Ohio's best Rx program:

(A) On receipt of each submission of formula or per unit price information under division (A)(3) of section 5110.25 of the Revised Code, or, at the department's discretion, more frequent intervals, the department shall do the following using the information available to the department from those submissions:

(1) If the drug is covered by one or more state health benefit plans or state retirement system health benefit plans, compute the weighted average of the per unit prices under those plans;

(2) If the drug is not covered by any state health benefit plan or state retirement system health benefit plan, compute a weighted average per unit price using the formula information received under division (A)(3) of section 5110.25 of the Revised Code for comparable drugs covered by one or more state health benefit plans or state retirement system health benefit plans;

(3) Compute the weighted averages required by divisions (A)(1) and (2) of this section by using the number of individuals eligible for benefits under a state health benefit plan or state retirement system health benefit plan.

(B) If the drug is covered by included in a rebate manufacturer agreement entered into under section 5110.21 of the Revised Code and the department has established a rebate program administration percentage by rule adopted under section 5110.35 of the Revised Code, at intervals specified by the department, the department shall do both of the following:

(1) Multiply the amount agreed to under division (B)(4)(a)(D)(1) of section 5110.21 of the Revised Code by the rebate program administration percentage;

(2) Subtract the product determined under division (B)(1) of this section from the amount agreed to under division (B)(4)(a)(D)(1) of section 5110.21 of the Revised Code.

(C) If the drug is covered by included in a rebate manufacturer agreement entered into under section 5110.21 of the Revised Code, on receipt of each submission of formula or per unit price information under division (A)(3) of section 5110.25 of the Revised Code, or, at the department's discretion, more frequent intervals, the department shall subtract the amount agreed to under division (B)(4)(D)(1) of section 5110.21 of the Revised Code or the amount computed under division (B) of this section, as applicable, from the applicable amount computed under division (A)(1) or (2) of this section.

Sec. 5110.29.  The department of job and family services shall report all of the following to each participating terminal distributor and the Ohio's best Rx program administrator drug mail order system included in the Ohio's best Rx program pursuant to section 5110.11 of the Revised Code in a manner enabling the distributor and administrator system to comply with section 5110.14 of the Revised Code:

(A) For each drug included in the Ohio's best Rx program that is not covered by included in a rebate manufacturer agreement entered into under section 5110.21 of the Revised Code, the results of the department's computations under division (A) of section 5110.27 of the Revised Code.

(B) For each drug included in the program that is covered by also included in a rebate manufacturer agreement entered into under section 5110.21 of the Revised Code, the results of the department's computations under division (C) of section 5110.27 of the Revised Code.

(C) The administrative fee, if any, determined by the department in accordance with rules adopted under section 5110.35 of the Revised Code.

Sec. 5110.32.  (A) The Ohio's best Rx program fund is hereby created. The fund shall be in the custody of the treasurer of state, but shall not be part of the state treasury. The fund shall consist of the following:

(1) Rebate Manufacturer payments made by participating manufacturers made pursuant to agreements under section 5110.21 of the Revised Code, including any aggregate manufacturer payments made under division (D)(3)(c) of that section;

(2) Administrative fees, if any administrative fee is determined by the department of job and family services in rules adopted under section 5110.35 of the Revised Code;

(3) Any amounts donated to the fund and accepted by the department;

(4) The fund's investment earnings.

(B) The department of job and family services shall use money Money in the Ohio's best Rx program fund shall be used to make payments to participating terminal distributors and the Ohio's best Rx program administrator under section 5110.17 of the Revised Code.

Sec. 5110.33.  (A) The Ohio's best Rx administration fund is hereby created in the state treasury. The treasurer of state shall transfer from the Ohio's best Rx program fund to the Ohio's best Rx administration fund amounts equal to the following:

(1) Amounts resulting from application of the rebate program administration percentage, if a program administration percentage is determined by the department of job and family services in rules adopted under section 5110.354 5110.35 of the Revised Code;

(2) The amount of the administrative fees charged Ohio's best Rx participants, if an administrative fee is determined by the department of job and family services in rules adopted under section 5110.35 of the Revised Code;

(3) The amount of any donations credited to the Ohio's best Rx program fund;

(4) The amount of investment earnings credited to the Ohio's best Rx program fund.

The treasurer of state shall make the transfers in accordance with a schedule developed by the treasurer of state and the department of job and family services.

(B) The department of job and family services shall use money in the Ohio's best Rx administration fund to pay the administrative costs of the Ohio's best Rx program, including, but not limited to, costs associated with contracted services, staff, outreach activities, computers and network services, and the Ohio's best Rx program council.

Sec. 5110.35.  The department of job and family services shall adopt rules in accordance with Chapter 119. of the Revised Code to implement the Ohio's best Rx program. The rules shall provide for all of the following:

(A) Determination of family income for the purpose of division (A)(2)(a) of section 5110.05 of the Revised Code;

(B) For the purpose of division (B) of section 5110.05 5110.06 of the Revised Code, the application and annual reapplication process for the program, including the information and documentation to be submitted with applications and reapplications for the purpose of verifying to verify eligibility and a process to be used in certifying that an applicant has attested to the accuracy of the information and documentation submitted with the application;

(C) For the purpose of division (B) of section 5110.05 of the Revised Code and subject to section 5110.351 of the Revised Code, the application form for the program;

(D) The method of providing information about the medicaid program to applicants under section 5110.07 of the Revised Code;

(E)(D) For the purpose of section 5110.08 of the Revised Code, eligibility determination procedures;

(E) Standards and procedures governing the drug mail order system included in the program pursuant to section 5110.11 of the Revised Code;

(F) Subject to section 5110.352 of the Revised Code, periodically increasing the maximum professional fee that participating terminal distributors may charge Ohio's best Rx program participants pursuant to an agreement entered into under section 5110.12 of the Revised Code or the Ohio's best Rx program administrator may charge under a contract entered into under section 5110.10 of the Revised Code;

(G) Subject to section 5110.353 of the Revised Code, the amount of the administrative fee, if any, participating terminal distributors are to charge that Ohio's best Rx program participants under section 5110.12 of the Revised Code or the Ohio's best Rx program administrator may charge under a contract entered into under section 5110.10 of the Revised Code are to be charged under the program;

(H) The electronic method for participating terminal distributors and the Ohio's best Rx program administrator to submit submission of claims to the department under section 5110.16 of the Revised Code;

(I) Additional information participating terminal distributors and the Ohio's best Rx program administrator shall include to be included on claims submitted under section 5110.16 of the Revised Code that the department determines is necessary for the department to be able to make payments under section 5110.17 of the Revised Code;

(J) The method for making payments to participating terminal distributors or the Ohio's best Rx program administrator under section 5110.17 of the Revised Code;

(K) Subject to section 5110.354 of the Revised Code, the percentage, if any, that is the rebate program administration percentage;

(L) If the department determines it is best that participating manufacturers make rebates payments under section 5110.21 of the Revised Code on a basis other than quarterly, a schedule for payment of the rebates making the payments;

(M) The process for the department of administrative services and state retirement systems to calculate and submit the information required by section 5110.25 of the Revised Code;

(N) Procedures for making computations under sections 5110.21 and 5110.27 of the Revised Code;

(O) Standards and procedures for the use and preservation of records regarding the Ohio's best Rx program by the department and the Ohio's best Rx program administrator pursuant to section 5110.59 of the Revised Code;

(P) For the purpose of section 5110.10 of the Revised Code, the standards and procedures governing the operation of the mail order system by the Ohio's best Rx program administrator;

(Q) The efficient administration of other provisions of this chapter for which the department determines rules are necessary.

Sec. 5110.352.  As used in this section, "medicaid dispensing fee" means the dispensing fee established under section 5111.071 of the Revised Code for the medicaid program.

In adopting a rule under division (F) of section 5110.35 of the Revised Code increasing the maximum amount of the professional fee participating terminal distributors may charge Ohio's best Rx program participants pursuant to an agreement entered into under section 5110.12 of the Revised Code and the Ohio's best Rx program administrator may charge under a contract entered into under section 5110.10 of the Revised Code, the department of job and family services shall review the amount of the professional fee once a year or, at the department's discretion, at more frequent intervals and. The department shall not increase the professional fee to an amount exceeding the medicaid dispensing fee.

A participating terminal distributor and the Ohio's best Rx program administrator may charge a maximum three dollar professional fee regardless of whether the medicaid dispensing fee for that drug is less than that amount. The department, however, may not adopt a rule increasing the maximum professional fee for that drug until the medicaid dispensing fee for that drug exceeds that amount.

Sec. 5110.353. (A) Once a year or, at the discretion of the department of job and family services, at more frequent intervals, the department shall determine the amount, if any, to be specified in a rule adopted under division (G) of section 5110.35 of the Revised Code as the administrative fee. In determining the amount of the administrative fee, the department shall determine an amount, not exceeding that each Ohio's best Rx program participant will be charged as an administrative fee to be used in paying the administrative costs of the program. The fee, which shall not exceed one dollar per transaction, shall be specified in rules adopted under section 5110.35 of the Revised Code. In adopting the rules, the department shall specify a fee that results in an amount that equals or is less than the amount needed to cover the administrative costs of the Ohio's best Rx program when added to the sum of the following:

(1) The amount resulting from the application of the rebate program administration percentage, if the department determines a program administration percentage in rules adopted under section 5110.35 of the Revised Code;

(2) The investment earnings of the Ohio's best Rx program fund created by section 5110.32 of the Revised Code;

(3) Any amounts accepted by the department as donations to the Ohio's best Rx program fund created by section 5110.32 of the Revised Code.

(B) Once a year or, at the discretion of the department, at more frequent intervals, the department shall report the methodology underlying the determination of the administrative fee to the Ohio's best Rx program council.

Sec. 5110.354. (A) At least once a year or, at the discretion of the department of job and family services, at more frequent intervals, the department shall determine the percentage, if any, to be specified in a rule adopted under division (K) of section 5110.35 of the Revised Code as the rebate administration percentage of each manufacturer payment made under an agreement entered into under section 5110.21 of the Revised Code that will be used in paying the administrative costs of the Ohio's best Rx program. The percentage, which shall not exceed five per cent, shall result be specified in rules adopted under section 5110.35 of the Revised Code. In adopting the rules, the department shall specify a percentage that results in an amount that equals or is less than the amount needed to cover the administrative costs of the Ohio's best Rx program when added to the sum of the following:

(1) The amount resulting from administrative fee specified in fees, if the department determines an administrative fee in rules adopted under section 5110.353 5110.35 of the Revised Code;

(2) The investment earnings of the Ohio's best Rx program fund created by section 5110.32 of the Revised Code;

(3) Any amounts accepted by the department as donations to the Ohio's best Rx program fund created by section 5110.32 of the Revised Code.

(B) Once a year or, at the discretion of the department, at more frequent intervals, the department shall report the methodology underlying the determination of the rebate program administration percentage to the Ohio's best Rx program council.

Sec. 5110.39.  Not later than the first day of March of each year, the department of job and family services shall do all of the following:

(A) Create a list of the twenty-five drugs most often dispensed to Ohio's best Rx program participants under the program, using data from the most recent six-month period for which the data is available;

(B) Determine the average amount that participating terminal distributors charge participants are charged under the program, on a date selected by the department, participants for each drug included on the list created under division (A) of this section;

(C) Determine, for the date selected for division (B) of this section, the average usual and customary charge of participating terminal distributors for each drug included on the list created under division (A) of this section;

(D) By comparing the average charges determined under divisions (B) and (C) of this section, determine the average percentage savings in the amount participating terminal distributors charge Ohio's best Rx program participants receive for each drug included on the list created under division (A) of this section.

Sec. 5110.55.  Information transmitted by or to any of the following for any purpose related to the Ohio's best Rx program is confidential to the extent required by federal and state law:

(A) Drug manufacturers;

(B) Terminal distributors of dangerous drugs;

(C) The Ohio's best Rx program administrator;

(D) The department of job and family services and any person under contract with the department pursuant to division (B) of section 5110.02 of the Revised Code to serve as the program's administrator;

(E)(D) The department of administrative services;

(F)(E) The state retirement systems;

(G)(F) A state health benefit plan or state retirement system health benefit plan;

(H)(G) Ohio's best Rx program participants;

(I)(H) Any other government entity or person.

Sec. 5110.56.  (A) Except as provided by section 5110.57 of the Revised Code, all of the following are trade secrets, are not public records for the purposes of section 149.43 of the Revised Code, and shall not be used, released, published, or disclosed in a form that reveals a specific drug or the identity of a drug manufacturer:

(1) The amounts determined under section 5110.17 of the Revised Code;

(2) Information disclosed in a rebate manufacturer agreement entered into under section 5110.21 of the Revised Code or in communications related to a rebate an agreement;

(3) Information that the department of administrative services and state retirement systems submit to the department of job and family services under divisions (A)(3) and (4) of section 5110.25 of the Revised Code;

(4) The elements of the computations under division (C)(E) of section 5110.21 of the Revised Code and under section 5110.27 of the Revised Code and any results of those computations that reveal or could be used to reveal the drug pricing, manufacturer payment, or rebate information and amounts used to make the computations.

(B) No person or government entity shall use or reveal any information specified in division (A) of this section except as required for the implementation of this chapter.

Sec. 5110.57.  Sections 5110.55 and 5110.56 of the Revised Code shall not preclude the department of job and family services from disclosing information necessary for the implementation of this chapter, including the Ohio's best Rx program price to participating terminal distributors or the Ohio's best Rx program administrator when it is disclosed under section 5110.29 of the Revised Code to participating terminal distributors or the drug mail order system included in the Ohio's best Rx program pursuant to section 5110.11 of the Revised Code.

Sec. 5110.58. (A) As used in this section, "identifying information" means information that identifies or could be used to identify an Ohio's best Rx program applicant or participant. "Identifying information" does not include aggregate information about applicants and participants that does not identify and could not be used to identify an individual applicant or participant.

(B) Except as provided in divisions (C), (D), and (E) of this section, no person or government entity shall sell, solicit, disclose, receive, or use identifying information or knowingly permit the use of identifying information.

(C)(1) The department of job and family services and the Ohio's best Rx program administrator may solicit, disclose, receive, or use identifying information or knowingly permit the use of identifying information for a purpose directly connected to the administration of the Ohio's best Rx program, including disclosing and knowingly permitting the use of identifying information included in a claim that a participating manufacturer audits pursuant to division (D)(G) of section 5110.21 of the Revised Code, contacting Ohio's best Rx program applicants or participants regarding participation in the program, and notifying applicants and participants regarding participating terminal distributors and the drug mail order system included in the program pursuant to section 5110.11 of the Revised Code.

(2) The department and administrator may solicit, disclose, receive, or use identifying information or knowingly permit the use of identifying information to the extent required by federal law.

(3) The department and administrator may disclose identifying information to the Ohio's best Rx program applicant or participant who is the subject of that information or to the parent, spouse, guardian, or custodian of that applicant or participant.

(D)(1) A participating terminal distributor or the Ohio's best Rx program administrator may solicit, disclose, receive, or use identifying information or knowingly permit the use of identifying information to the extent required or permitted by an agreement the distributor enters into under section 5110.12 of the Revised Code or a contract the administrator enters into under section 5110.10 of the Revised Code.

(2) The drug mail order system included in the program pursuant to section 5110.11 of the Revised Code may solicit, disclose, receive, or use identifying information or knowingly permit the use of identifying information to the extent required or permitted by the department.

(E) A participating manufacturer may, for the purpose of auditing a claim pursuant to division (D)(G) of section 5110.21 of the Revised Code, solicit, receive, and use identifying information included in the claim.

Sec. 5110.59. The department of job and family services and the Ohio's best Rx program administrator shall use and preserve records regarding the Ohio's best Rx program in accordance with rules adopted under section 5110.35 of the Revised Code. This section applies to the department's or administrator's use and preservation of The department shall use and preserve the records in accordance with those rules, regardless of whether the department generated the records or received or generated by the department, any other them from another government entity, or any person.

Section 2. That existing sections 127.16, 2921.13, 5110.01, 5110.02, 5110.03, 5110.05, 5110.08, 5110.09, 5110.12, 5110.13, 5110.14, 5110.15, 5110.16, 5110.17, 5110.18, 5110.19, 5110.21, 5110.23, 5110.26, 5110.27, 5110.29, 5110.32, 5110.33, 5110.35, 5110.352, 5110.353, 5110.354, 5110.39, 5110.55, 5110.56, 5110.57, 5110.58, and 5110.59 and sections 5110.10, 5110.11, 5110.22, 5110.28, and 5110.351 of the Revised Code are hereby repealed.

Section 3. Divisions (D)(3)(b) and (c) of section 5110.21 of the Revised Code, as amended by this act, apply only with respect to agreements that are entered into under that section on and after the effective date of this act.