235
(B) six shall be appointed by the Majority Leader
of the Senate, in consultation with the Minority Leader
of the Senate, of whom not more than 4 shall be of the
same political party;
(C) six shall be appointed by the Speaker of the
House of Representatives, in consultation with the Mi-
nority Leader of the House of Representatives, of
whom not more than 4 shall be of the same political
party; and
(D) one, who shall serve as Chairman of the Com-
mission, appointed jointly by the President, Majority
Leader of the Senate, and the Speaker of the House
of Representatives.
(2) DEADLINE FOR APPOINTMENT.—Members of the
Commission shall be appointed by not later than December
1, 2002.
(3) TERMS OF APPOINTMENT.—The term of any ap-
pointment under paragraph (1) to the Commission shall be
for the life of the Commission.
(4) MEETINGS.—The Commission shall meet at the
call of its Chairman or a majority of its members.
(5) QUORUM.—A quorum shall consist of 8 members
of the Commission, except that 4 members may conduct a
hearing under subsection (e).
(6) VACANCIES.—A vacancy on the Commission shall
be filled in the same manner in which the original appoint-
ment was made not later than 30 days after the Commis-
sion is given notice of the vacancy and shall not affect the
power of the remaining members to execute the duties of
the Commission.
(7) COMPENSATION.—Members of the Commission
shall receive no additional pay, allowances, or benefits by
reason of their service on the Commission.
(8) EXPENSES.—Each member of the Commission
shall receive travel expenses and per diem in lieu of subsist-
ence in accordance with sections 5702 and 5703 of title 5,
United States Code.
236
(d) STAFF AND SUPPORT SERVICES.—
(1) EXECUTIVE DIRECTOR.—
(A) APPOINTMENT.—The Chairman shall appoint
an executive director of the Commission.
(B) COMPENSATION.—The executive director shall
be paid the rate of basic pay for level V of the Execu-
tive Schedule.
(2) STAFF.—With the approval of the Commission,
the executive director may appoint such personnel as the
executive director considers appropriate.
(3) APPLICABILITY
OF
CIVIL
SERVICE
LAWS.—The
staff of the Commission shall be appointed without regard
to the provisions of title 5, United States Code, governing
appointments in the competitive service, and shall be paid
without regard to the provisions of chapter 51 and sub-
chapter III of chapter 53 of such title (relating to classi-
fication and General Schedule pay rates).
(4) EXPERTS AND CONSULTANTS.—With the approval
of the Commission, the executive director may procure tem-
porary and intermittent services under section 3109(b) of
title 5, United States Code.
(5) PHYSICAL FACILITIES.—The Administrator of the
General Services Administration shall locate suitable office
space for the operation of the Commission. The facilities
shall serve as the headquarters of the Commission and
shall include all necessary equipment and incidentals re-
quired for the proper functioning of the Commission.
(e) POWERS OF COMMISSION.—
(1) HEARINGS AND OTHER ACTIVITIES.—For the pur-
pose of carrying out its duties, the Commission may hold
such hearings and undertake such other activities as the
Commission determines to be necessary to carry out its du-
ties.
(2) STUDIES BY GAO.—Upon the request of the Com-
mission, the Comptroller General shall conduct such studies
or investigations as the Commission determines to be nec-
essary to carry out its duties.
237
(3) COST ESTIMATES BY CONGRESSIONAL BUDGET OF-
FICE AND OFFICE OF THE CHIEF ACTUARY OF HCFA.—
(A) The Director of the Congressional Budget Of-
fice or the Chief Actuary of the Centers for Medicare
& Medicaid Services, or both, shall provide to the Com-
mission, upon the request of the Commission, such cost
estimates as the Commission determines to be nec-
essary to carry out its duties.
(B) The Commission shall reimburse the Director
of the Congressional Budget Office for expenses relat-
ing to the employment in the office of the Director of
such additional staff as may be necessary for the Direc-
tor to comply with requests by the Commission under
subparagraph (A).
(4) DETAIL OF FEDERAL EMPLOYEES.—Upon the re-
quest of the Commission, the head of any Federal agency
is authorized to detail, without reimbursement, any of the
personnel of such agency to the Commission to assist the
Commission in carrying out its duties. Any such detail shall
not interrupt or otherwise affect the civil service status or
privileges of the Federal employee.
(5) TECHNICAL ASSISTANCE.—Upon the request of the
Commission, the head of a Federal agency shall provide
such technical assistance to the Commission as the Com-
mission determines to be necessary to carry out its duties.
(6) USE OF MAILS.—The Commission may use the
United States mails in the same manner and under the
same conditions as Federal agencies and shall, for purposes
of the frank, be considered a commission of Congress as
described in section 3215 of title 39, United States Code.
(7) OBTAINING INFORMATION.—The Commission may
secure directly from any Federal agency information nec-
essary to enable it to carry out its duties, if the information
may be disclosed under section 552 of title 5, United States
Code. Upon request of the Chairman of the Commission,
the head of such agency shall furnish such information to
the Commission.
238
(8) ADMINISTRATIVE SUPPORT SERVICES.—Upon the
request of the Commission, the Administrator of General
Services shall provide to the Commission on a reimbursable
basis such administrative support services as the Commis-
sion may request.
(9) PRINTING.—For purposes of costs relating to
printing and binding, including the cost of personnel de-
tailed from the Government Printing Office, the Commis-
sion shall be deemed to be a committee of the Congress.
(f) REPORT.—Not later than March 1, 2004, the Commis-
sion shall submit a report to the President and Congress which
shall contain a detailed statement of only those recommenda-
tions, findings, and conclusions of the Commission.
(g) TERMINATION.—The Commission shall terminate 30
days after the date of submission of the report required in sub-
section (f).
(h) AUTHORIZATION OF APPROPRIATIONS.—There are au-
thorized to be appropriated $1,500,000 to carry out this sec-
tion.
SEC. 902. GAO STUDY ON MEDICAID DRUG PAYMENT
SYSTEM.
(a) STUDY.—The Comptroller General of the United
States shall conduct a study on the reimbursement under the
medicaid program for covered outpatient drugs. Such study
shall examine—
(1) the extent to which such reimbursements for a
drug exceed the acquisition costs for that drug;
(2) the services and resources associated with dis-
pensing a prescription and any additional payments avail-
able to compensate for expenses for these services and re-
sources; and
(3) efforts undertaken by States to change the levels
of such reimbursement and the price data they use in ef-
fecting such change.
(b) REPORT.—Not later than 1 year after the date of the
enactment of this Act, the Comptroller General shall submit to
Congress a report on the study conducted under subsection (a)
239
and shall include in such report such recommendations for
changes for legislative or administrative action regarding med-
icaid reimbursement methodologies for outpatient prescription
drugs, and their application to the medicare program, as the
Comptroller General deems appropriate.
Subtitle B—Internet Pharmacies
SEC. 911. FINDINGS.
The Congress finds as follows:
(1) Legitimate Internet sellers of prescription drugs
can offer substantial benefits to consumers. These potential
benefits include convenience, privacy, valuable information,
competitive prices, and personalized services.
(2) Unlawful Internet sellers of prescription drugs
may dispense inappropriate, contaminated, counterfeit, or
subpotent prescription drugs that could put at risk the
health and safety of consumers.
(3) Unlawful Internet sellers have exposed consumers
to significant health risks by knowingly filling invalid pre-
scriptions, such as prescriptions based solely on an online
questionnaire, or by dispensing prescription drugs without
any prescription.
(4) Consumers may have difficulty distinguishing le-
gitimate from unlawful Internet sellers, as well as foreign
from domestic Internet sellers, of prescription drugs.
SEC. 912. AMENDMENT TO FEDERAL FOOD, DRUG, AND
COSMETIC ACT.
(a) IN GENERAL.—Chapter V of the Federal Food, Drug,
and Cosmetic Act (21 U.S.C. 351 et seq.) is amended by in-
serting after section 503A the following:
‘‘SEC. 503B. INTERNET PRESCRIPTION DRUG SALES.
‘‘(a) DEFINITIONS.—For purposes of this section:
‘‘(1) CONSUMER.—The term ‘consumer’ means a per-
son (other than an entity licensed or otherwise authorized
under Federal or State law as a pharmacy or to dispense
or distribute prescription drugs) that purchases or seeks to
purchase prescription drugs through the Internet.