Flsenate Archive: Session

HB 1599

2003

A bill to be entitled

An act relating to pharmacy benefit managers; creating s.

465.189, F.S.; establishing standards and criteria for

regulation and licensing of pharmacy benefit managers;

providing a popular name; providing purpose, intent, and

applicability; providing definitions; requiring a biennial

certificate of authority and an annual license; providing

rulemaking authority to the Board of Pharmacy and the

Office of Insurance Regulation; requiring an annual

statement; providing for financial examinations; providing

for assessments and fees; providing for pharmacy benefit

manager contracts; providing for enforcement; providing

for medication reimbursement costs; specifying prohibited

practices; preserving existing contracts and providing

prospective application for new contracts; providing for

control over conflicting provisions of law; providing an

effective date.

Be It Enacted by the Legislature of the State of Florida:

Section 1. Section 465.189, Florida Statutes, is created

to read:

465.189 Pharmacy benefit managers.--

(1) POPULAR NAME.--This section shall be known by the

popular name the "Florida Pharmacy Benefit Management Regulation

Act."

(2) PURPOSE AND INTENT; APPLICABILITY.--

(a)1. This section establishes standards and criteria for

the regulation and licensing of pharmacy benefit managers.

2. The purpose of this section is to:

a. Promote, preserve, and protect the public health,

safety, and welfare through effective regulation and licensing

of pharmacy benefit managers.

b. Provide for certain powers and duties for certain state

agencies and officers.

c. Prescribe penalties for violations of this section.

(b) A pharmacy benefit manager is subject to this section

if the pharmacy benefit manager provides claims-processing

services, other prescription drug or device services, or both,

to patients who are residents of this state.

provide services in this state unless the pharmacy benefit

manager is in full compliance with this section.

(3) DEFINITIONS.--For purposes of this section:

(a) "Board" means the Board of Pharmacy.

(b) "Cease and desist order" means an order of the board

or office prohibiting a pharmacy benefit manager or other person

or entity from continuing a particular course of conduct that

violates this section or rules adopted under this section.

services performed in connection with the processing and

adjudication of claims relating to pharmacist's services,

including, but not limited to, making payments to pharmacists

and pharmacies.

(d) "Maintenance drug" means a drug prescribed by a

practitioner who is licensed to prescribe drugs and used to

treat a medical condition for a period greater than 30 days.

(e) "Multi-source drug" means a drug that is stocked and

available from three or more suppliers.

(f) "Office" means the Office of Insurance Regulation of

the Financial Services Commission.

(g) "Other prescription drug or device services" means

services other than claims-processing services, provided

directly or indirectly by a pharmacy benefit manager, whether in

connection with or separate from claims-processing services,

including, but not limited to:

1. Negotiating rebates, discounts, or other financial

incentives and arrangements with drug companies.

2. Disbursing or distributing rebates.

3. Managing or participating in incentive programs or

arrangements for pharmacist's services.

4. Negotiating or entering into contractual arrangements

with pharmacists or pharmacies, or both.

5. Developing formularies.

6. Designing prescription benefit programs.

7. Advertising or promoting claims-processing services or

other prescription drug or device services.

(h) "Pharmacist" means an individual licensed as a

pharmacist under this chapter.

(i) "Pharmacist's services" means the practice of the

profession of pharmacy as defined in s. 465.003.

(j) "Pharmacy" means pharmacy as defined in s. 465.003.

(k)1. "Pharmacy benefit manager" means a person, business,

or other entity, and any wholly or partially owned or controlled

subsidiary of a pharmacy benefit manager, that provides claims-

processing services or other prescription drug or device

services, or both, to third parties.

2. "Pharmacy benefit manager" does not include licensed

health care facilities, pharmacies, licensed health care

professionals, insurance companies, unions, or health

maintenance organizations.

(l) "Single-source drug" means a drug that is not a multi-

source drug.

(m)1. "Third parties" means any person, business, or other

entity other than a pharmacy benefit manager.

2. "Third parties" does not include:

a. A person, business, or other entity that owns or holds

a controlling interest in the pharmacy benefit manager; or

b. A person, business, or other entity in which the

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pharmacy benefit manager owns or holds a controlling interest.

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(n) "Usual and customary price" means the price that a

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pharmacist or pharmacy would have charged cash-paying patients,

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excluding patients for whom reimbursement rates are set by

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contract, for the same services on the same date.

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(4) CERTIFICATE OF AUTHORITY.--

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(a)1. No person or organization shall establish or operate

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as a pharmacy benefit manager in this state without obtaining a

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certificate of authority from the board in accordance with this

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section and all applicable federal and state laws.

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2. A pharmacy benefit manager doing business in this state

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shall obtain a certificate of authority from the board within

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120 days after the effective date of this section and every 2

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years thereafter. The certificate of authority shall expire on

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December 31 in the year following the year the certificate of

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authority was first issued and then may be renewed for

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successive 2-year periods.

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(b)1. Any organization or person may apply to the board to

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obtain a certificate of authority to establish and operate a

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pharmacy benefit manager under this section.

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2. A nonrefundable application fee of $300, payable to the

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board, shall accompany each application for a certificate of

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authority and each application for renewal of a certificate of

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authority.

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to any pharmacy benefit manager until the board is satisfied

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that the pharmacy benefit manager:

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1. Holds a current license issued by the office to do

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business in this state as a pharmacy benefit manager.

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2. Is ready and able to arrange for pharmacist's services

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in this state.

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3. Meets the requirements set forth in this section and in

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rules adopted under this section.

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4. Is in compliance with all applicable state and federal

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laws and regulations.

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(d) The board may suspend or revoke any certificate of

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authority issued to a pharmacy benefit manager under this

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section, deny an application for a certificate of authority to

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an applicant, or deny an application for renewal of a

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certificate of authority if it finds that:

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1. The pharmacy benefit manager is operating materially in

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contravention of:

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a. Its application or other information submitted as a

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part of its application for a certificate of authority or

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renewal of its certificate of authority; or

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b. Any condition imposed by the board with regard to the

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issuance or renewal of its certificate of authority;

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2. The pharmacy benefit manager does not arrange for

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pharmacist's services;

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3. The pharmacy benefit manager has failed to continuously

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meet the requirements for issuance of a certificate of authority

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as set forth in this section or any rules adopted under this

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section;

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4. The pharmacy benefit manager has otherwise failed to

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substantially comply with this section or any rules adopted

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under this section;

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5. The continued operation of the pharmacy benefit manager

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may be hazardous to patients; or

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6. The pharmacy benefit manager has failed to

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substantially comply with any applicable state or federal law or

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regulation.

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(e)1. When the certificate of authority of a pharmacy

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benefit manager is revoked, the manager shall:

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a. Proceed, immediately following the effective date of

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the order of revocation, to wind up its affairs.

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b. Conduct no further business except as may be essential

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to the orderly conclusion of its affairs.

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2. The board may permit any further operation of the

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pharmacy benefit manager as the board may find to be in the best

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interest of patients to the end that patients will have the

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greatest practical opportunity to obtain pharmacist's services.

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(5) LICENSE TO DO BUSINESS.--

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(a)1. No person or organization shall establish or operate

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as a pharmacy benefit manager in this state without first

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obtaining a license from the office in accordance with this

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section and all applicable federal and state laws.

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2. A pharmacy benefit manager doing business in this state

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shall obtain a license from the office within 60 days after the

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effective date of this section and each year thereafter.

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(b)1. An application for a license to operate in this

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state as a pharmacy benefit manager shall be in a form

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prescribed by the office and shall be verified by an officer or

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authorized representative of the pharmacy benefit manager.

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2. The application shall include at least the following:

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a. All organizational documents, including, but not

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limited to, articles of incorporation, bylaws, and other similar

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documents and any amendments.

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b. The names, addresses, and titles of individuals

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responsible for the business and services provided, including

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all claims-processing services and other prescription drug or

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device services.

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c. The names, addresses, titles, and qualifications of the

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members and officers of the board of directors, board of

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trustees, or other governing body or committee, or the partners

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or owners in case of a partnership, other entity, or

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association.

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d. A detailed description of the claims-processing

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services and other prescription drug or device services provided

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or to be provided.

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e. The name and address of the agent for service of

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process in this state.

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f. Financial statements for the current and the preceding

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year showing the assets, liabilities, direct or indirect income,

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and any other sources of financial support sufficient, as deemed

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by the office, to show financial stability and viability to meet

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its full obligations to pharmacies and pharmacists.

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g. A bond in an amount determined by the office by rule to

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ensure that funds received by the pharmacy benefit manager for

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pharmacist's services are, in fact, paid to appropriate

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pharmacies and pharmacists.

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h. All incentive arrangements or programs such as rebates,

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discounts, disbursements, or any other similar financial program

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or arrangement relating to income or consideration received or

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negotiated, directly or indirectly, with any pharmaceutical

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company that relates to other prescription drug or device

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services, including, but not limited to:

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(I) Information on the formula or other method for

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calculation and amount of the incentive arrangements, rebates,

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or other disbursements.

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(II) The identity of the associated drug or device.

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(III) The dates and amounts of the disbursements.

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i. Other information as the office may require.

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manager license to do business in this state to any pharmacy

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benefit manager until the office is satisfied that the pharmacy

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benefit manager has:

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1. Paid all fees, taxes, and charges required by law.

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2. Filed a financial statement or statements and any

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reports, certificates, or other documents the office considers

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necessary to secure a full and accurate knowledge of the

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pharmacy benefit manager's affairs and financial condition.

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3.a. Established its solvency.

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b. Satisfied the office that the pharmacy benefit

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manager's financial condition, method of operation, and manner

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of doing business make it possible for the pharmacy benefit

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manager to meet its obligations to pharmacies and pharmacists.

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4. Otherwise complied with all the requirements of law.

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5. Obtained a bond in an amount determined by the office

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to ensure that funds received by the pharmacy benefit manager

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for pharmacist's services are, in fact, paid to appropriate

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pharmacies and pharmacists.

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(d)1. The annual pharmacy benefit manager license shall be

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in addition to the certificate of authority issued by the board.

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2. A nonrefundable license application fee of $500 shall

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accompany each application for a license to transact business in

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this state.

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3. The fee shall be collected by the office and paid

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directly into the Insurance Commissioner's Regulatory Trust Fund

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to provide expenses for the regulation, supervision, and

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examination of all entities subject to regulation under this

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section.

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(e) The pharmacy benefit manager license shall be signed

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by the office or an authorized agent of the office and shall

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expire 1 year after the date the license becomes effective.

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(f)1. A pharmacy benefit manager transacting business in

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this state shall obtain an annual renewal of its license from

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the office.

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2. The office may refuse to renew the license of any

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pharmacy benefit manager or may renew the license, subject to

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any restrictions considered appropriate by the office, if the

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office finds that the pharmacy benefit manager has not satisfied

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all the conditions stated in this section.

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3.a. Before denying renewal of a license, the office shall

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provide the pharmacy benefit manager:

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(I) At least 10 days' advance notice of the denial.

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(II) An opportunity to appear at a formal or informal

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hearing.

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b. The office and the pharmacy benefit manager may jointly

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waive the required notice.

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(6) RULES.--

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(a) The board may adopt rules not inconsistent with this

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section regulating pharmacy benefit managers with regard to

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professional, public health, and public safety issues.

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(b) The office may adopt rules not inconsistent with this

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section regulating pharmacy benefit managers with regard to

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business and financial issues.

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including, but not limited to, monetary fines, for violations of

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this section and rules adopted under this section.

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(7) ANNUAL STATEMENT.--

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(a)1. A pharmacy benefit manager doing business in this

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state shall file a statement with the office annually by March

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2. The statement shall be verified by at least two

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principal officers of the pharmacy benefit manager and shall

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cover the preceding calendar year.

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(b) The statement shall be on forms prescribed by the

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office and shall include:

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1. A financial statement of the organization, including

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its balance sheet and income statement for the preceding year.

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2. The number and dollar value of claims for pharmacist's

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services processed by the pharmacy benefit manager during the

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preceding year with respect to patients who are residents of

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this state.

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3. Any other information relating to the operations of the

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pharmacy benefit manager required by the office.

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an independent certified public accountant, a copy of each

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certified audit report shall be promptly filed with the office.

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(d)1. The office may extend the time prescribed for any

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pharmacy benefit manager for filing annual statements or other

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reports or exhibits for good cause shown.

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2. The office may not extend the time for filing annual

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statements beyond 60 days after the time prescribed in this

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section.

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3. Until the annual statement is filed, the office may

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revoke or suspend the license of a pharmacy benefit manager that

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fails to file its annual statement within the time prescribed by

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this section.

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(8) FINANCIAL EXAMINATION.--

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(a)1. The office shall regularly conduct financial

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examinations of all pharmacy benefit managers doing business in

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this state pursuant to a schedule and in a manner established by

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rule.

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2. The examination shall verify:

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a. The financial ability of the pharmacy benefit manager

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to meet its full obligations to pharmacies and pharmacists.

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b. Information submitted to the office as a part of an

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application for a license or renewal of a license.

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c. Compliance with this section.

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(b) In lieu of, or in addition to, making the financial

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examination of a pharmacy benefit manager, the office may accept

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the report of a financial examination of the pharmacy benefit

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manager under the laws of another state certified by its

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insurance office, similar regulatory agency, or state health

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agency to the extent that the report of financial examination

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covers the minimum requirements specified in paragraph (a).

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of pharmacy benefit managers to ensure an appropriate level of

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regulatory oversight and to avoid any undue duplication of

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effort or regulation.

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2. The pharmacy benefit manager being examined shall pay

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the cost of the examination.

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3. The cost of the examination shall be deposited into the

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Insurance Commissioner's Regulatory Trust Fund to provide all

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expenses for the regulation, supervision, and examination of all

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entities subject to regulation under this section.

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(9) ASSESSMENT.--

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(a) Except as provided in subparagraph (8)(c)3., the

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expense of administering this section incurred by the office

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shall be assessed annually by the office against all pharmacy

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benefit managers operating in this state.

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(b) The office shall assess each pharmacy benefit manager

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annually for its share of the office's estimated expenses with

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regard to this section in proportion to the business done in

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this state, as determined by the office in the office's

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reasonable discretion.

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notice of the assessment, which shall be paid to the office

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before March 2 of each year.

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2. A pharmacy benefit manager that fails to pay the

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assessment before March 2 of each year shall be subject to a

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penalty imposed by the office.

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3. The penalty shall be 10 percent of the assessment plus

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interest for the period between the due date and the date of

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full payment.

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4. If a payment is made in an amount later found to be in

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error, the office shall:

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a. If an additional amount is due:

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(I) Notify the pharmacy benefit manager of the additional

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amount due.

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(II) Order the pharmacy benefit manager to pay the

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additional amount within 14 days after the date of the notice.

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b. If an overpayment is made, order a refund to the

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pharmacy benefit manager.

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(d)1. If an assessment made under this section is not paid

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to the office by the prescribed date, the amount of the

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assessment, plus any penalty, may be recovered from the

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defaulting pharmacy benefit manager on motion of the office made

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in the name and for the use of the State of Florida in the

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Circuit Court of Leon County, after 10 days' notice to the

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pharmacy benefit manager.

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2. The license of any defaulting pharmacy benefit manager

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to transact business in this state may be revoked or suspended

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by the office until the pharmacy benefit manager has paid the

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assessment.

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(e) All fees assessed under this section and paid to the

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office shall be deposited into the Insurance Commissioner's

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Regulatory Trust Fund to provide all expenses for the

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regulation, supervision, and examination by the office of all

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entities subject to regulation under this section.

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(f) If a pharmacy benefit manager becomes insolvent or

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ceases to do business in this state in any assessable or license

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year, the pharmacy benefit manager shall remain liable for the

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payment of the assessment for the period in which it operated as

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a pharmacy benefit manager in this state.

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(10) PHARMACY BENEFIT MANAGER CONTRACTS.--

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(a)1. A pharmacy benefit manager that contracts with a

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pharmacy or pharmacist to provide pharmacist's services in this

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state shall first inform the pharmacy or pharmacist in writing

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of the number of, and other relevant information concerning,

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patients to be served by the pharmacy or pharmacist under the

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contract.

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2. There shall be a separate contract with each pharmacy

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or pharmacist for each of the pharmacy benefit manager's

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provider networks.

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3. Contracts providing for indemnity of the pharmacy or

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pharmacist shall be separate from contracts providing for cash

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discounts.

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4. A pharmacy benefit manager shall not require that a

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pharmacy or pharmacist participate in one contract in order to

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participate in another contract.

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(b) Each pharmacy benefit manager shall provide contracts

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to the pharmacies and pharmacists that are written in plain

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English, using terms that will be generally understood by

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pharmacists.

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pharmacy or pharmacist shall provide specific time limits for

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the pharmacy benefit manager to pay the pharmacy or pharmacist

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for pharmacist's services rendered.

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(d) No pharmacy benefit manager contract may mandate that

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any pharmacy or pharmacist change a patient's maintenance drug

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unless the prescribing practitioner so orders.

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(e)1. In handling moneys received by the pharmacy benefit

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manager for pharmacist's services, the pharmacy benefit manager

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acts as a fiduciary of the pharmacy, pharmacist, or both, that

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provided the pharmacist's services.

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2. A pharmacy benefit manager shall distribute all moneys

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the pharmacy benefit manager receives for pharmacist's services

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to the pharmacies and pharmacists that provided the pharmacist's

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services and shall do so within a time established by the

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office.

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(f)1. A pharmacy benefit manager that contracts with a

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pharmacy or pharmacist to provide pharmacist's services in this

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state shall file the contract forms with the office 30 days

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before the execution of the contract.

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2.a. The contract forms are approved unless the office

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disapproves the contract forms within 30 days after filing with

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the office.

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b. Disapproval shall be in writing, stating the reasons

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for the disapproval, and a copy shall be delivered to the

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pharmacy benefit manager.

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c. The office shall develop formal criteria for the

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approval and disapproval of pharmacy benefit manager contract

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forms.

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(g)1. A pharmacy benefit manager that initiates an audit

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of a pharmacy or pharmacist under the contract shall limit the

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audit to methods and procedures that are recognized as fair and

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equitable for both the pharmacy benefit manager and the pharmacy

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or pharmacist, or both.

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2. Extrapolation calculations in an audit are prohibited.

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3. A pharmacy benefit manager may not recoup any moneys

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due from an audit by setoff from future remittances until the

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results of the audit are finalized.

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(h) Before terminating a pharmacy or pharmacist from a

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pharmacy benefit manager's provider network, the pharmacy

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benefit manager shall give the pharmacy or pharmacist a written

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explanation of the reason for the termination 30 days before the

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actual termination unless the termination is taken in reaction

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to:

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1. Loss of license;

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2. Loss of professional liability insurance; or

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3. Conviction of fraud or misrepresentation.

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(i)1. No pharmacy or pharmacist may be held responsible

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for the acts or omissions of a pharmacy benefit manager.

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2. No pharmacy benefit manager may be held responsible for

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the acts or omissions of a pharmacy or pharmacist.

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(11) ENFORCEMENT.--

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(a)1. Enforcement of this section shall be the

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responsibility of the board and the office.

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2. The board or the office, or both, shall take action or

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impose appropriate penalties to bring a noncomplying pharmacy

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benefit manager into full compliance with this section or shall

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terminate the pharmacy benefit manager's certificate of

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authority or license.

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(b)1. The board and the office shall each adopt procedures

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for formal investigation of complaints concerning the failure of

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a pharmacy benefit manager to comply with this section.

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2.a. The office may refer a complaint received under this

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section to the board if the complaint involves a professional or

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patient health or safety issue.

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b. The board may refer a complaint received under this

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section to the office if the complaint involves a business or

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financial issue.

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3.a. If the board or the office has reason to believe that

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there may have been a violation of this section, the board or

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office shall issue and serve upon the pharmacy benefit manager a

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statement of the charges and a notice of a hearing.

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b. The hearing shall be held at a time and place fixed in

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the notice, and not be less than 30 days after the notice is

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served.

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c. At the hearing, the pharmacy benefit manager shall have

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an opportunity to be heard and to show cause why the board or

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the office should not:

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(I) Issue a cease and desist order against the pharmacy

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benefit manager; or

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(II) Take any other necessary or appropriate action,

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including, but not limited to, termination of the pharmacy

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benefit manager's certificate of authority or license.

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the quality of services of any pharmacy benefit manager,

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pharmacy, or pharmacist with whom the pharmacy benefit manager

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has contracts, as the board deems necessary for the protection

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of the interests of the residents of this state.

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2. In addition to applying penalties and remedies under

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this section for a pharmacy benefit manager's violation of this

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section, the board may also apply penalties and remedies under

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any provision of state law for violation thereof.

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(12) MEDICATION REIMBURSEMENT COSTS.--

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(a) Pharmacy benefit managers shall use a current

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nationally recognized benchmark to base reimbursements for

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medications and products dispensed by pharmacies or pharmacists

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with whom the pharmacy benefit manager contracts as follows:

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1. For brand single-source drugs and brand multi-source

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drugs, either the Average Wholesale Price as listed in First

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Data Bank (Hearst Publications) or Facts & Comparisons (formerly

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Medispan) shall be used as an index.

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2. For generic multi-source drugs, maximum allowable costs

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shall be established by referencing the Baseline Price as listed

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in either First Data Bank or Facts & Comparisons.

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a. Only products that are in compliance with pharmacy laws

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as equivalent and generically interchangeable with a United

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States Food and Drug Administration Orange Book rating of A-B

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may be reimbursed from a maximum allowable cost price

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methodology.

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b. If a generic multi-source drug product has no baseline

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price, then it shall be treated as a brand single-source drug

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for the purpose of valuing reimbursement.

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(b) If the publications specified in paragraph (a) cease

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to be nationally recognized benchmarks used to base

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reimbursement for medications and products dispensed by

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pharmacies and pharmacists, other current nationally recognized

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benchmarks, as are then current and in effect, may be utilized

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so long as the benchmark is established and published by a

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person, business, or other entity with which no pharmacy benefit

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manager has a financial or business interest or connection.

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(13) PROHIBITED PRACTICES.--

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(a) Neither a pharmacy benefit manager nor a

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representative of a pharmacy benefit manager may cause or

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knowingly permit the use of any advertisement, promotion,

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solicitation, proposal, or offer that is untrue, deceptive, or

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misleading.

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(b) A pharmacy benefit manager may not discriminate on the

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basis of race, creed, color, sex, or religion in the selection

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of pharmacies or pharmacists with which the pharmacy benefit

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manager contracts.

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discriminate against or between pharmacies or pharmacists.

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(d) A pharmacy benefit manager shall be entitled to access

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a pharmacy's or pharmacist's usual and customary price only for

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comparison to specific claims for payment made by the pharmacy

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or pharmacist to the pharmacy benefit manager, and any other use

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or disclosure by the pharmacy benefit manager is prohibited.

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(e) A pharmacy benefit manager may not, directly or

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indirectly, overtly or covertly, in cash or in kind, receive or

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accept any rebate, kickback, or any special payment, favor, or

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advantage of any valuable consideration or inducement for

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influencing or switching a patient's drug product unless the

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rebate, kickback, payment, favor, valuable consideration, or

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inducement is specified in a written contract that has been

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filed with the office.

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(f)1. Claims for pharmacist's services paid by a pharmacy

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benefit manager may not be retroactively denied or adjusted

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after adjudication of the claims, unless:

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a. The original claim was submitted fraudulently;

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b. The original claim payment was incorrect because the

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pharmacy or pharmacist had already been paid for the

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pharmacist's services; or

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c. The pharmacist's services were not, in fact, rendered

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by the pharmacy or pharmacist.

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2. An acknowledgement of eligibility may not be

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retroactively reversed.

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(g) A pharmacy benefit manager may not terminate a

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contract with a pharmacy or pharmacist, or terminate, suspend,

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or otherwise limit the participation of a pharmacy or pharmacist

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in a pharmacy benefit manager's provider network, because:

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1. The pharmacy or pharmacist expresses disagreement with

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the pharmacy benefit manager's decision to deny or limit

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benefits to a patient;

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2. The pharmacist discusses with a patient any aspect of

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the patient's medical condition or treatment alternatives;

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3. The pharmacist makes personal recommendations regarding

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selecting a pharmacy benefit manager based on the pharmacist's

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personal knowledge of the health needs of the patient;

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4. The pharmacy or pharmacist protests or expresses

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disagreement with a decision, policy, or practice of the

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pharmacy benefit manager;

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5. The pharmacy or pharmacist has in good faith

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communicated with or advocated on behalf of any patient related

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to the needs of the patient regarding the method by which the

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pharmacy or pharmacist is compensated for services provided

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under the contract with the pharmacy benefit manager;

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6. The pharmacy or pharmacist complains to the board or

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office that the pharmacy benefit manager has failed to comply

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with this section; or

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7. The pharmacy or pharmacist asserts rights under the

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contract with the pharmacy benefit manager.

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(h) Termination of a contract between a pharmacy benefit

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manager and a pharmacy or pharmacist, or termination of a

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pharmacy or pharmacist from a pharmacy benefit manager's

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provider network, shall not release the pharmacy benefit manager

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from the obligation to make any payment due to the pharmacy or

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pharmacist for pharmacist's services rendered.

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(i) A pharmacy benefit manager may not intervene in the

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delivery or transmission of prescriptions from the prescriber to

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the pharmacist or pharmacy for the purpose of:

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1. Influencing the prescriber's choice of therapy;

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2. Influencing the patient's choice of pharmacist or

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pharmacy; or

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3. Altering the prescription information, including, but

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not limited to, switching the prescribed drug without the

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express written authorization of the prescriber.

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(j) A pharmacy benefit manager may not engage in or

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interfere with the practice of medicine or intervene in the

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practice of medicine between prescribers and their patients.

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(k) A pharmacy benefit manager may not engage in any

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activity that violates any requirement of Florida law.

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(14) NO IMPAIRMENT OF EXISTING CONTRACTS.--To avoid

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impairment of existing contracts, this section shall apply only

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to contracts entered into or renewed after the effective date of

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this section.

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(15) SUPPLEMENTAL NATURE.--This section is supplemental to

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all other laws and supersedes only those laws or parts of laws

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in direct conflict with it.

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Section 2. This act shall take effect upon becoming a law.

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