Page:United States Statutes at Large Volume 124.djvu/489

 124 STAT. 463 PUBLIC LAW 111–148—MAR. 23, 2010 program, including any determination under clause (i) of sub- section (c)(1)(A) or procedures established under such sub- section (c)(1)(A). ‘‘(4) LENGTH OF AGREEMENT.— ‘‘(A) IN GENERAL.—An agreement under this section shall be effective for an initial period of not less than 18 months and shall be automatically renewed for a period of not less than 1 year unless terminated under subpara- graph (B). ‘‘(B) TERMINATION.— ‘‘(i) BY THE SECRETARY.—The Secretary may pro- vide for termination of an agreement under this section for a knowing and willful violation of the requirements of the agreement or other good cause shown. Such termination shall not be effective earlier than 30 days after the date of notice to the manufacturer of such termination. The Secretary shall provide, upon request, a manufacturer with a hearing concerning such a termination, and such hearing shall take place prior to the effective date of the termination with sufficient time for such effective date to be repealed if the Sec- retary determines appropriate. ‘‘(ii) BY A MANUFACTURER.—A manufacturer may terminate an agreement under this section for any reason. Any such termination shall be effective, with respect to a plan year— ‘‘(I) if the termination occurs before January 30 of a plan year, as of the day after the end of the plan year; and ‘‘(II) if the termination occurs on or after January 30 of a plan year, as of the day after the end of the succeeding plan year. ‘‘(iii) EFFECTIVENESS OF TERMINATION.—Any termi- nation under this subparagraph shall not affect dis- counts for applicable drugs of the manufacturer that are due under the agreement before the effective date of its termination. ‘‘(iv) NOTICE TO THIRD PARTY.—The Secretary shall provide notice of such termination to a third party with a contract under subsection (d)(3) within not less than 30 days before the effective date of such termi- nation. ‘‘(c) DUTIES DESCRIBED AND SPECIAL RULE FOR SUPPLEMENTAL BENEFITS.— ‘‘(1) DUTIES DESCRIBED.—The duties described in this sub- section are the following: ‘‘(A) ADMINISTRATION OF PROGRAM.—Administering the program, including— ‘‘(i) the determination of the amount of the dis- counted price of an applicable drug of a manufacturer; ‘‘(ii) except as provided in clause (iii), the establish- ment of procedures under which discounted prices are provided to applicable beneficiaries at pharmacies or by mail order service at the point-of-sale of an applicable drug; ‘‘(iii) in the case where, during the period beginning on July 1, 2010, and ending on December 31, 2011, Determination. Procedures. Deadline. Notice. Time period.