1 | 1 | | 81R7767 KCR-F |
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2 | 2 | | By: Gattis, Gonzalez Toureilles, et al. H.B. No. 2293 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | relating to the delivery of prescription drugs for certain state |
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8 | 8 | | health plans by mail order; providing an administrative penalty. |
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9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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10 | 10 | | SECTION 1. Subtitle H, Title 8, Insurance Code, is amended |
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11 | 11 | | by adding Chapter 1560 to read as follows: |
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12 | 12 | | CHAPTER 1560. DELIVERY OF PRESCRIPTION DRUGS BY MAIL |
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13 | 13 | | Sec. 1560.001. DEFINITIONS. In this chapter: |
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14 | 14 | | (1) "Community retail pharmacy" means a pharmacy that |
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15 | 15 | | is licensed as a Class A pharmacy under Chapter 560, Occupations |
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16 | 16 | | Code. |
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17 | 17 | | (2) "Mail order pharmacy" means a pharmacy that is |
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18 | 18 | | licensed under Chapter 560, Occupations Code, and that primarily |
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19 | 19 | | delivers prescription drugs to an enrollee through the United |
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20 | 20 | | States Postal Service or a commercial delivery service. |
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21 | 21 | | (3) "Prescription drug formulary" means a list of |
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22 | 22 | | prescription drugs preferred for use and eligible for coverage |
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23 | 23 | | under a health benefit plan. |
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24 | 24 | | Sec. 1560.002. APPLICABILITY OF CHAPTER. This chapter |
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25 | 25 | | applies only to a health benefit plan that provides benefits for |
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26 | 26 | | medical or surgical expenses incurred as a result of a health |
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27 | 27 | | condition, accident, or sickness, including an individual, group, |
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28 | 28 | | blanket, or franchise insurance policy or insurance agreement, a |
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29 | 29 | | group hospital service contract, or an individual or group evidence |
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30 | 30 | | of coverage or similar coverage document that is offered or |
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31 | 31 | | administered by: |
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32 | 32 | | (1) the Teacher Retirement System of Texas under |
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33 | 33 | | Chapter 1575 or 1579; or |
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34 | 34 | | (2) the Employees Retirement System of Texas under |
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35 | 35 | | Chapter 1551. |
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36 | 36 | | Sec. 1560.003. MULTIPLE-MONTH SUPPLY OF PRESCRIPTION DRUG. |
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37 | 37 | | (a) In this section, "multiple-month supply" means a supply for 60 |
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38 | 38 | | or more days. |
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39 | 39 | | (b) Notwithstanding any other law, an issuer of a health |
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40 | 40 | | benefit plan that provides pharmacy benefits to enrollees must |
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41 | 41 | | allow an enrollee to obtain from a community retail pharmacy a |
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42 | 42 | | multiple-month supply of any prescription drug under the same terms |
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43 | 43 | | and conditions applicable when the prescription drug is obtained |
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44 | 44 | | from a mail order pharmacy, if the community retail pharmacy agrees |
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45 | 45 | | to accept reimbursement on exactly the same terms and conditions |
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46 | 46 | | that apply to a mail order pharmacy. |
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47 | 47 | | (c) This section does not require: |
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48 | 48 | | (1) the issuer of a health benefit plan to contract |
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49 | 49 | | with: |
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50 | 50 | | (A) a retail pharmacy that does not agree to |
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51 | 51 | | accept reimbursement on exactly the same terms and conditions that |
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52 | 52 | | apply to a mail order pharmacy; or |
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53 | 53 | | (B) more than one mail order pharmacy; or |
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54 | 54 | | (2) a community retail pharmacy to: |
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55 | 55 | | (A) provide a multiple-month supply of a |
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56 | 56 | | prescription drug under the same terms and conditions applicable |
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57 | 57 | | when the prescription drug is obtained from a mail order pharmacy; |
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58 | 58 | | or |
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59 | 59 | | (B) agree to accept reimbursement on exactly the |
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60 | 60 | | same terms and conditions that apply to a mail order pharmacy. |
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61 | 61 | | Sec. 1560.004. PRESCRIPTION DRUG REIMBURSEMENT RATES. (a) |
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62 | 62 | | An issuer of a health benefit plan that provides pharmacy benefits |
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63 | 63 | | to enrollees shall reimburse pharmacies participating in the health |
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64 | 64 | | plan using prescription drug reimbursement rates, for both brand |
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65 | 65 | | name and generic prescription drugs, that are based on a current and |
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66 | 66 | | nationally recognized benchmark index that includes average |
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67 | 67 | | wholesale price and maximum allowable cost. |
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68 | 68 | | (b) Regardless of whether a pharmacy is a mail order |
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69 | 69 | | pharmacy or a community retail pharmacy, an issuer of a health |
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70 | 70 | | benefit plan shall use the same benchmark index, including the same |
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71 | 71 | | average wholesale price, maximum allowable cost, and national |
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72 | 72 | | prescription drug codes, to reimburse all pharmacies participating |
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73 | 73 | | in the health benefit plan. |
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74 | 74 | | Sec. 1560.005. ACQUISITION COSTS AND REBATES. An issuer of |
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75 | 75 | | a health benefit plan that contracts with a third-party |
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76 | 76 | | administrator, pharmacy benefit manager, or other entity to manage |
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77 | 77 | | pharmacy benefits provided to enrollees through a mail order |
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78 | 78 | | pharmacy shall require the managing entity to: |
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79 | 79 | | (1) provide the issuer of the health benefit plan with |
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80 | 80 | | an annual electronic report containing: |
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81 | 81 | | (A) the actual acquisition cost of all drugs |
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82 | 82 | | purchased by the managing entity in relation to the pharmacy |
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83 | 83 | | benefits under the health benefit plan; and |
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84 | 84 | | (B) an identification of the source, type, and |
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85 | 85 | | amount of all rebates, rebate administrative fees, and other |
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86 | 86 | | monetary benefits received by the managing entity from a drug |
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87 | 87 | | manufacturer in relation to the pharmacy benefits under the health |
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88 | 88 | | benefit plan; and |
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89 | 89 | | (2) not later than the 30th day after the date the |
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90 | 90 | | managing entity receives a rebate, rebate administrative fee, or |
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91 | 91 | | other monetary benefit from a drug manufacturer in relation to the |
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92 | 92 | | pharmacy benefits under the health benefit plan, reimburse or |
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93 | 93 | | credit to the issuer of the health benefit plan an amount equal to |
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94 | 94 | | the amount of the rebate, rebate administrative fee, or other |
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95 | 95 | | monetary benefit received by the managing entity. |
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96 | 96 | | Sec. 1560.006. PHARMACY BENEFIT MANAGERS: DESIGNATION OF |
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97 | 97 | | CONFIDENTIAL INFORMATION. (a) A pharmacy benefit manager may |
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98 | 98 | | designate as confidential any information the pharmacy benefit |
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99 | 99 | | manager is required to disclose under Section 1560.005. |
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100 | 100 | | (b) Information designated as confidential under this |
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101 | 101 | | section may not be disclosed to any person without the consent of |
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102 | 102 | | the pharmacy benefit manager unless the disclosure is: |
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103 | 103 | | (1) ordered by a court for good cause shown; |
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104 | 104 | | (2) made under seal in a court filing; or |
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105 | 105 | | (3) made to the commissioner of insurance or the |
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106 | 106 | | attorney general in connection with an investigation authorized by |
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107 | 107 | | this code, the Government Code, or any other law. |
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108 | 108 | | Sec. 1560.007. COMPLAINT AND ENFORCEMENT; ADMINISTRATIVE |
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109 | 109 | | PENALTIES. (a) The department shall investigate any complaint |
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110 | 110 | | that the department receives concerning conduct regulated by this |
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111 | 111 | | chapter. |
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112 | 112 | | (b) Following an investigation under Subsection (a), the |
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113 | 113 | | commissioner shall issue a written determination of the outcome of |
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114 | 114 | | the investigation, including whether the department has taken or |
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115 | 115 | | intends to take any action under Chapters 81-86. |
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116 | 116 | | (c) If, as a result of a complaint investigated under |
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117 | 117 | | Subsection (a), the commissioner determines that an issuer of a |
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118 | 118 | | health benefit plan has violated this chapter, the commissioner |
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119 | 119 | | shall impose an administrative penalty against the issuer of the |
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120 | 120 | | health benefit plan in accordance with Chapter 84. The amount of an |
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121 | 121 | | administrative penalty imposed under this subsection may not exceed |
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122 | 122 | | $1,000 per prescription that was filled or that was not filled in |
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123 | 123 | | violation of this chapter. The limitation on the amount of an |
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124 | 124 | | administrative penalty under Section 84.022 does not apply to an |
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125 | 125 | | administrative penalty imposed under this subsection. |
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126 | 126 | | SECTION 2. Section 1551.224, Insurance Code, is amended to |
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127 | 127 | | read as follows: |
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128 | 128 | | Sec. 1551.224. MAIL ORDER REQUIREMENT FOR PRESCRIPTION DRUG |
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129 | 129 | | COVERAGE PROHIBITED. (a) The board of trustees or a health benefit |
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130 | 130 | | plan under this chapter that provides benefits for prescription |
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131 | 131 | | drugs may not require a participant in the group benefits program to |
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132 | 132 | | purchase a prescription drug through a mail order program. |
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133 | 133 | | (b) Except as provided by Subsection (c), the [The] board of |
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134 | 134 | | trustees or a health benefit plan shall require that a participant |
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135 | 135 | | who chooses to obtain a prescription drug through a retail pharmacy |
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136 | 136 | | or other method other than by mail order pay a deductible, |
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137 | 137 | | copayment, coinsurance, or other cost-sharing obligation to cover |
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138 | 138 | | the additional cost of obtaining a prescription drug through that |
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139 | 139 | | method rather than by mail order. |
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140 | 140 | | (c) The board of trustees or a health benefit plan may not |
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141 | 141 | | require a participant who obtains a multiple-month supply of a |
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142 | 142 | | prescription drug from a retail pharmacy under Section 1560.003 to |
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143 | 143 | | pay a deductible, copayment, coinsurance, or other cost-sharing |
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144 | 144 | | obligation that differs from the amount the participant pays for a |
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145 | 145 | | multiple-month supply of that drug through a mail order program. |
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146 | 146 | | SECTION 3. The change in law made by this Act applies only |
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147 | 147 | | to a health benefit plan that is delivered, issued for delivery, or |
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148 | 148 | | renewed on or after January 1, 2010. A health benefit plan that is |
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149 | 149 | | delivered, issued for delivery, or renewed before January 1, 2010, |
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150 | 150 | | is covered by the law in effect at the time the policy was |
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151 | 151 | | delivered, issued for delivery, or renewed, and that law is |
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152 | 152 | | continued in effect for that purpose. |
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153 | 153 | | SECTION 4. This Act takes effect September 1, 2009. |
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