December 2014 Legislative Report

House Bill No. 80, known as Act 192 of 2014  (the “ Act”) amends Title 18 of Pennsylvania Statutes (“Crimes Code”) to accomplish two legal goals:  (a) creates the crimes of theft of secondary metals and criminal trespass with respect to secondary metals (b) creates the right of third parties to sue municipalities that have laws regulating firearms such as the prohibition of straw party purchases.

(1)    The first part of the Act addresses the theft of valuable metals at railroads, churches, schools and other properties about which much news has been recently reported. The metals are called “secondary metals” and consist of “wire, pipe or cable commonly used by communications, gas and electrical utilities and railroads and mass transit or commuter rail agencies. Copper, aluminum or other metal, or a combination of metals, that is valuable for recycling or reuse as raw metal.” The criminal trespass is a first degree misdemeanor and occurs when a person enters or remains in a place, knowing he has no license or privilege, for the purpose of unlawfully taking secondary metal therefrom.  The theft of secondary metals occurs when a person “unlawfully takes or attempts to take possession of, carries away or exercise unlawful control over any secondary metal with the intent to deprive the rightful owner thereof” and is graded as a third degree misdemeanor up to a felony depending on the value of the secondary metal and whether it is the third or subsequent offense.

(2)    The Act also  addresses firearms by (a) requiring the Pennsylvania State Police to report to disclose to the United States Attorney General (National Instant Criminal Background Check System)within 72 hours of receipt mental health data going to the qualification(or disqualification) of a person to receive or possess a firearm and (b) providing that “a person adversely affected by a resolution, regulation, rule, practice or any other action prohibited by [certain Pennsylvania statutes prohibiting municipal entities from regulating firearms] … may seek declaratory or injunctive and actual damages in an appropriate court.” Additionally, the court can award attorneys fees, expert witness fees, court costs and compensation for loss of income and other unnamed expenses. The person authorized to sue is (1) a Pennsylvania resident who may legally possess a firearm under federal and state law, (2) a person otherwise enabled under the new law and (3) “a membership organization” in which a member is a person in (1) or (2). Consequently, the Act has been interpreted by fans and critics of giving a new right of action to the National Rifle Organization to sue any  of the 50 or more Pennsylvania municipalities with such laws of record whose residents would bear the expenses awarded in such suits.

The Act was supposed to take effect on December 27, 2014, but a suit was filed November 10, 2014, to stay its effect.

 

House Bill No. 1846, known as Act 184 of 2014  (the “Law”) amends the Workers’ Compensation Act (“WCA”) to eliminate a pricing loophole and to limit certain drug dispensing by physicians in order to save prescription drug costs and reduce addiction to certain drugs. First, the WCA schedule of compensation has been amended to (a) limit reimbursement to 110% of the average wholesale price (“AWP”)as of the date of dispensing for prescription drugs and professional pharmaceutical services, (B) requiring a physician seeking reimbursement for drugs dispensed to use the original manufacturer’s national drug code (“NDC”) on bills and reports required by the WCA, (C) limit to 110% of the AWP for the NDC on  the reimbursement  of drugs dispensed by a physician, (D) limit to 110% of the AWP of the least expensive clinically equivalent drug where a physician dispenses drugs without using the NDC, and (E)  limit to licensed pharmacies (not physicians) reimbursement for (1) more than a seven-day supply of “schedule II controlled substances” from initial treatment, or if the employee needs an additional medical procedure, more than 15-day supply from the date of the procedure, (2)  more than a 7-day supply of “schedule III controlled substances” with hydrocodone from initial treatment or an additional 15-day supply from the date of subsequent medical procedure, (3) more than a maximum 30-day supply from initial treatment under the particular workers compensation claim,   (4) submit a claim for any supply greater than 1 through 3 above under the same workers compensation claim, and (5) any over-the-counter drug. The Law took effect December 26, 2014.