A. The prescription drug rebate fund is established consisting of prescription drug rebate collections, interest from prescription drug rebate late payments and federal monies made available to this state for the operation of the Arizona health care cost containment system prescription drug rebate program. The administration shall administer the fund. Nonfederal monies in the fund are subject to annual legislative appropriation. Federal monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to the lapsing of appropriations.

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B. Monies in the fund shall be used to return the federal share of prescription drug rebate collections and interest from late payments to the centers for medicare and medicaid services by offsetting future federal draws, to pay for the administrative costs of the prescription drug rebate program and as the nonfederal share for payments to contractors or providers in the administration’s medical services programs. The nonfederal share of prescription drug rebate collections and interest from late payments include rebates relating to programs administered by the department of economic security, the department of child safety, the department of health services and other governmental entities that contribute to the nonfederal share for prescription drugs.

C. For the purposes of this section, "administrative costs of the prescription drug rebate program" includes:

1. Payments to the prescription drug rebate vendor.

2. Administrative costs of the administration in support of the prescription drug rebate program.