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AN ACT
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relating to the Texas Pharmaceutical Initiative and a governing |
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board and advisory council for the initiative. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle D, Title 10, Government Code, is |
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amended by adding Chapter 2177 to read as follows: |
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CHAPTER 2177. TEXAS PHARMACEUTICAL INITIATIVE |
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Sec. 2177.001. DEFINITIONS. In this chapter: |
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(1) "Advisory council" means the Texas Pharmaceutical |
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Initiative Advisory Council established under this chapter. |
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(2) "Board" means the governing board of the |
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initiative. |
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(3) "Commission" means the Health and Human Services |
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Commission. |
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(4) "Generic biological product" means a biological |
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product approved pursuant to an application under Section 351(k), |
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Public Health Service Act (42 U.S.C. Section 262(k)). |
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(5) "Generic drug" means a prescription drug approved |
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pursuant to an application under Section 505(j), Federal Food, |
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Drug, and Cosmetic Act (21 U.S.C. Section 355(j)). |
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(6) "Initiative" means the Texas Pharmaceutical |
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Initiative established under this chapter. |
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Sec. 2177.002. TEXAS PHARMACEUTICAL INITIATIVE. The Texas |
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Pharmaceutical Initiative is established to provide cost-effective |
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access to prescription drugs and other medical supplies for: |
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(1) employees, dependents, and retirees of public |
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higher education systems and institutions; |
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(2) Employees Retirement System of Texas members; |
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(3) Teacher Retirement System of Texas members; |
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(4) persons confined by the Texas Department of |
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Criminal Justice or the Texas Juvenile Justice Department; and |
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(5) individuals served by a program operated or |
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administered by the health and human services system, as that term |
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is defined by Section 531.001. |
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Sec. 2177.003. BOARD. (a) The initiative is governed by a |
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board composed of three members appointed by the governor. |
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(b) The governor shall designate the presiding officer of |
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the board. |
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(c) A board member serves without compensation but may be |
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reimbursed for travel and other actual and reasonable expenses |
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incurred in the performance of the member's duties on the board. |
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Sec. 2177.004. BOARD MEMBER QUALIFICATIONS. (a) A person |
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may not serve as a board member if the person: |
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(1) has held any other elective public office during |
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the preceding five years; or |
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(2) is an employee of an entity served by the |
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initiative. |
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(b) Not more than one-third of the members of the board |
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serving at any one time may derive more than 10 percent of their |
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annual income from the health care, insurance, or pharmaceutical |
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industry. |
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Sec. 2177.005. BOARD POWERS AND DUTIES. (a) The board may: |
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(1) develop and implement the initiative and any |
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programs established by this chapter; |
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(2) establish procedures and policies for the |
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administration of the initiative; and |
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(3) establish procedures to document compliance by |
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board members and personnel with applicable laws governing |
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conflicts of interest. |
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(b) To carry out the purposes of this chapter and implement |
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the initiative, the board may: |
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(1) hire and employ an executive director and |
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necessary personnel to provide administrative support; |
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(2) execute contracts and other instruments and |
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conduct all activities the board determines necessary for those |
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purposes; |
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(3) authorize one or more board members to execute |
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contracts and other instruments on behalf of the board; and |
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(4) establish a committee or other similar entity to |
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exercise powers delegated by the board and exercise any other |
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administrative duties or powers as the board considers necessary. |
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Sec. 2177.006. BUSINESS PLAN. Not later than October 1, |
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2024, the board shall develop and submit to the governor, the |
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legislature, and the Legislative Budget Board a business plan on: |
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(1) implementing the initiative, including the |
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initiative's organizational structure and related programs; |
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(2) establishing procedures and policies for the |
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administration of the initiative, including documenting the |
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process and resources required for the provision to individuals |
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described by Section 2177.002 of the following services: |
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(A) establishing or contracting for statewide |
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pharmacy benefit manager services; |
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(B) establishing policies and conditions to |
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operate or contract for the operation of a distribution network, |
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central service center, and associated network of satellite |
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distribution facilities to distribute prescription drugs and |
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related medical supplies; and |
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(C) providing advanced pharmaceutical |
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preparation and related services, including: |
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(i) manufacturing generic drugs and generic |
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biological products; |
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(ii) providing gene therapies and precision |
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medicine; and |
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(iii) providing advanced laboratories for |
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quality control, preparation, and compounding of drugs in support |
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of innovative therapeutics and drug research; |
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(3) establishing procedures to document compliance by |
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board members and personnel with applicable laws governing |
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conflicts of interest; |
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(4) establishing the conditions for state agencies |
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that facilitate health plans to participate in the initiative; |
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(5) identifying potential cost savings from |
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implementation of the initiative; |
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(6) identifying the funding and resources needed to |
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implement this chapter; and |
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(7) providing other board recommendations, with |
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supporting documentation, on continuation of the initiative. |
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Sec. 2177.007. ADMINISTRATIVE ATTACHMENT. (a) The board |
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is administratively attached to the commission. |
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(b) The commission shall provide administrative support |
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services to the board as necessary to carry out the purposes of this |
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chapter. |
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Sec. 2177.008. ADVISORY COUNCIL. (a) The Texas |
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Pharmaceutical Initiative Advisory Council is established to |
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advise the board in implementing this chapter and carrying out the |
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duties imposed on the board under this chapter. |
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(b) The advisory council is composed of: |
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(1) the executive commissioner of the commission or |
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the executive commissioner's designee; |
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(2) the executive director of the Employees Retirement |
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System of Texas or the executive director's designee; |
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(3) the executive director of the Teacher Retirement |
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System of Texas or the executive director's designee; |
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(4) the chancellor of The University of Texas System |
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or the chancellor's designee; and |
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(5) the chancellor of The Texas A&M University System |
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or the chancellor's designee. |
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Sec. 2177.009. CONFLICTS OF INTEREST. Except as otherwise |
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provided by this chapter, Chapter 572 applies to the initiative. |
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Sec. 2177.010. EXPIRATION OF CHAPTER. This chapter expires |
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September 1, 2025. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2023. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 4990 was passed by the House on May 2, |
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2023, by the following vote: Yeas 128, Nays 12, 1 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 4990 on May 26, 2023, by the following vote: Yeas 113, Nays 26, |
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1 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 4990 was passed by the Senate, with |
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amendments, on May 24, 2023, by the following vote: Yeas 26, Nays |
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4. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |