Ch. 203                                    2003 LAWS OF MARYLAND

(f) The Department of Health and Mental Hygiene may implement measures
to encourage the use of medically appropriate generic drugs and those brand name
drugs on a preferred drug list, including:

(1)     The use of tiered copayments for Medicaid and the Maryland
Pharmacy Assistance Program [provided that the amounts set for those copayments
do not result in an increase in total copayment collections];

(2)     The use of differential dispensing fees to pharmacies provided that
the amounts set for those dispensing fees remain revenue neutral;

(3)     The use of consultation payments to pharmacies, similar to those
used in the State Employee Health Benefits Plan, to encourage communication
between patients, prescribers, and pharmacists regarding cost-effective drug
therapies; and

(4)     The implementation of education programs on the use of preferred
drugs for prescribers that participate in the Medicaid and Maryland Pharmacy
Assistance Programs.

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland
read as follows:

Article 41- Governor - Executive and Administrative Departments

4-403.

(b) [For] SUBJECT TO SUBSECTION (D) OF THIS SECTION, FOR the fiscal year
beginning July 1, [1975] 2004, and thereafter, the State shall pay to each subdivision,
and to each qualifying municipality, each year in the manner and subject to the
limitations and requirements hereinafter provided, an amount determined as follows:

(1)     Share in Basic Expenditure. If the aggregate expenditures for police
protection in a subdivision equal or exceed $6.00 per capita, the State shall pay to the
subdivision the amount, if any, by which the equivalent of $6.00 per capita exceeds
0.09% of the wealth base. If the aggregate expenditures for police protection in a
subdivision are less than $6.00 per capita, the State shall pay to the subdivision the
amount, if any, by which aggregate expenditures for police protection exceed that
proportion of 0.09 percent of the wealth base which aggregate expenditures for police
protection bear to the equivalent of $6.00 per capita.

(2)     Share Over the Basic Expenditure. In addition to the amount, if any,
payable under paragraph (1) of this subsection, the State shall pay to each
subdivision an amount equal to 25% of the amount, if any, by which aggregate
expenditures for police protection exceed the equivalent of $6.00 per capita. Provided
however:

(i) For subdivisions with a population density less than 100 per
square mile, and less than 30% of total population residing in municipalities, there
shall be no payment under this paragraph.

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