Texas 2011 - 82nd Regular

Texas House Bill HB3714 Latest Draft

Bill / Introduced Version

Download
.pdf .doc .html
                            82R10311 JSC-D
 By: McClendon H.B. No. 3714


 A BILL TO BE ENTITLED
 AN ACT
 relating to the regulation of controlled substances and the
 establishment of an electronic system for monitoring controlled
 substances; providing criminal penalties.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Subtitle J, Title 3, Occupations Code, is
 amended by adding Chapter 570 to read as follows:
 CHAPTER 570. CONTROLLED SUBSTANCE REGISTRATION;
 PRESCRIPTION DRUG ORDER MONITORING PROGRAM
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 570.001.  PURPOSE. This chapter is intended to improve
 the state's ability to identify and stop diversion of Schedule II-V
 controlled substance prescription drug orders or other
 prescription drug orders in an efficient and cost-effective manner
 that will not impede the appropriate medical utilization of
 controlled substances or other potentially abusable drugs.
 Sec. 570.002.  DEFINITIONS. In this chapter:
 (1)  "Administer," "agent," "chemical laboratory
 apparatus," "chemical precursor," "controlled premises,"
 "controlled substance," "controlled substance analogue,"
 "deliver," "dispense," "dispenser," "distribute," "distributor,"
 "drug," "federal Controlled Substances Act," "federal Drug
 Enforcement Administration," "institutional practitioner,"
 "lawful possession," "manufacture," "medical purpose," "narcotic
 drug," "patient," "person," "pharmacist," "pharmacy,"
 "possession," "practitioner," "prescribe," and "prescription" have
 the meanings assigned by Section 481.002, Health and Safety Code.
 (2)  "Board" has the meaning assigned by Section
 551.003.
 (3)  "Hospital" means:
 (A)  a general or special hospital as defined by
 Section 241.003, Health and Safety Code; or
 (B)  an ambulatory surgical center as defined by
 Section 243.002, Health and Safety Code, and approved by the
 federal government to perform surgery paid by Medicaid on patients
 admitted for a period of not more than 24 hours.
 (4)  "Medication order" means an order from a
 practitioner to dispense a drug to a patient in a hospital for
 immediate administration while the patient is in the hospital or
 for emergency use on the patient's release from the hospital.
 (5)  "Pharmacist-in-charge" means the pharmacist
 designated on a pharmacy license as the pharmacist who has the
 authority or responsibility for the pharmacy's compliance with this
 chapter and other laws relating to pharmacy.
 (6)  "Principal place of business" means a location
 where a person manufactures, distributes, dispenses, analyzes, or
 possesses a controlled substance. The term does not include a
 location where a practitioner dispenses a controlled substance on
 an outpatient basis unless the controlled substance is stored at
 that location.
 (7)  "Ultimate user" means a person who has lawfully
 obtained and possesses a controlled substance for the person's own
 use, for the use of a member of the person's household, or for
 administering to an animal owned by the person or by a member of the
 person's household.
 Sec. 570.003.  RULES. (a) The board may adopt the rules
 necessary to implement this chapter.
 (b)  The board by rule shall establish and revise as
 necessary a standardized database format that may be used by a
 pharmacy to transmit the information required by this chapter to
 the board electronically.
 (c)  The board, in consultation with the Department of State
 Health Services, the Department of Public Safety, and the Texas
 Medical Board, by rule may:
 (1)  remove a controlled substance listed in Schedules
 II through V under Subchapter B, Chapter 481, Health and Safety
 Code, from the prescription drug order monitoring program, if the
 board determines that the burden imposed by the program
 substantially outweighs the risk of diversion of the particular
 controlled substance; or
 (2)  add a substance not listed in Schedules II through
 V under Subchapter B, Chapter 481, Health and Safety Code, to the
 prescription drug order monitoring program, if the board determines
 that the risk of diversion substantially outweighs the burden
 imposed by the program on the particular substance.
 (d)  The board by rule may:
 (1)  remove from or return to the prescription drug
 order monitoring program any aspect of a practitioner's or
 pharmacist's hospital practice, including administering or
 dispensing substances subject to the prescription drug order
 monitoring program;
 (2)  waive or delay any requirement relating to the
 time or manner of reporting to the prescription drug order
 monitoring program;
 (3)  establish compatibility protocols for electronic
 data transfer hardware, software, or format;
 (4)  establish a procedure to control the release of
 information under this chapter; and
 (5)  establish a minimum level of prescription drug
 order activity below which a reporting activity may be modified or
 discontinued.
 (e)  The board by rule shall authorize a practitioner to
 determine whether it is necessary to obtain an individual's patient
 identification number and to provide the number on the prescription
 drug order.
 Sec. 570.004.  AUTHORITY TO CONTRACT. The board may
 authorize a contract between the board and another agency of this
 state or a private vendor as necessary to ensure the effective
 operation of the prescription drug order monitoring program.
 Sec. 570.005.  ECONOMIC IMPACT CONSIDERATION. In adopting a
 rule relating to the electronic transfer of information under this
 chapter, the board shall:
 (1)  consider the economic impact of the proposed rule
 on practitioners and pharmacists, including potential costs
 related to computer hardware or software or to the transfer of
 information; and
 (2)  to the extent permitted by law, act to minimize any
 negative economic effect on practitioners or pharmacists.
 Sec. 570.006.  FEES. (a) The board may use fees collected
 under Subchapter B to administer this chapter.
 (b)  The board may not impose a fee for the electronic
 transfer of information in addition to the fees authorized by
 Subchapter B.
 (c)  The board may charge:
 (1)  a nonrefundable fee of not more than $25 before
 processing an application for annual registration; and
 (2)  a late fee of not more than $50 for each
 application for renewal the board receives after the date the
 applicant's registration expires.
 (d)  The board by rule shall set the fees under Subsection
 (c) in the amounts necessary to cover the cost of administering and
 enforcing this chapter.
 (e)  The board shall deposit the fees collected under this
 chapter to the credit of the general revenue fund.
 Sec. 570.007.  GIFTS AND GRANTS. The board may accept gifts
 or grants from private individuals, foundations, or the federal
 government for the purposes authorized by this chapter.
 [Sections 570.008-570.050 reserved for expansion]
 SUBCHAPTER B. REGULATION OF MANUFACTURE, DISTRIBUTION, AND
 DISPENSATION OF CONTROLLED SUBSTANCES, CHEMICAL PRECURSORS, AND
 CHEMICAL LABORATORY APPARATUS
 Sec. 570.051.  REGISTRATION REQUIRED. (a) Except as
 otherwise provided by this chapter, a person may not manufacture,
 distribute, prescribe, possess, analyze, or dispense a controlled
 substance in this state unless the person is registered by the board
 under this subchapter.
 (b)  A person who is registered by the board to manufacture,
 distribute, analyze, dispense, or conduct research with a
 controlled substance may possess, manufacture, distribute,
 analyze, dispense, or conduct research with that substance to the
 extent authorized by the person's registration and in conformity
 with this subchapter.
 (c)  Except as provided by Subsection (d), a separate
 registration is required at each principal place of business or
 professional practice where the applicant manufactures,
 distributes, analyzes, dispenses, or possesses a controlled
 substance.
 (d)  The board may not require separate registration for a
 practitioner engaged in research with a nonnarcotic controlled
 substance listed in Schedules II through V under Subchapter B,
 Chapter 481, Health and Safety Code, if the practitioner is already
 registered under this subchapter in another capacity.
 Sec. 570.052.  EXEMPTIONS. (a) The following persons are
 not required to register under this subchapter and may possess a
 controlled substance under this chapter:
 (1)  an agent or employee of a registered manufacturer,
 distributor, analyzer, or dispenser of the controlled substance
 acting in the usual course of business or employment;
 (2)  a common or contract carrier, a warehouseman, or
 an employee of a carrier or warehouseman whose possession of the
 controlled substance is in the usual course of business or
 employment;
 (3)  an ultimate user or a person in possession of the
 controlled substance under a lawful order of a practitioner or in
 lawful possession of the controlled substance if it is listed in
 Schedule V under Subchapter B, Chapter 481, Health and Safety Code;
 (4)  an officer or employee of this state, another
 state, a political subdivision of this state or another state, or
 the United States who is lawfully engaged in the enforcement of a
 law relating to a controlled substance or drug or to a customs law
 and authorized to possess the controlled substance in the discharge
 of the person's official duties; or
 (5)  if the substance is tetrahydrocannabinol or one of
 its derivatives:
 (A)  a Department of State Health Services
 official, a medical school researcher, or a research program
 participant possessing the substance as authorized under
 Subchapter G, Chapter 481, Health and Safety Code; or
 (B)  a practitioner or an ultimate user possessing
 the substance as a participant in a federally approved therapeutic
 research program that the executive director has reviewed and
 found, in writing, to contain a medically responsible research
 protocol.
 (b)  The board by rule may waive the requirement for
 registration of certain manufacturers, distributors, or dispensers
 if the board finds it consistent with the public health and safety
 and if the attorney general of the United States has issued a
 similar waiver under the federal Controlled Substances Act.
 Sec. 570.053.  EXCEPTIONS. (a) This subchapter does not
 apply to an educational or research program of a school district or
 a public or private institution of higher education. This
 subchapter does not apply to a manufacturer, wholesaler, retailer,
 or other person who sells, transfers, or furnishes materials
 covered by this subchapter to those educational or research
 programs.
 (b)  The board and the Texas Higher Education Coordinating
 Board shall adopt a memorandum of understanding that establishes
 the responsibilities of each agency and the public or private
 institutions of higher education in implementing and maintaining a
 program for reporting information concerning controlled
 substances, controlled substance analogues, chemical precursors,
 and chemical laboratory apparatus used in educational or research
 activities of institutions of higher education.
 (c)  The board and the Texas Education Agency shall adopt a
 memorandum of understanding that establishes the responsibilities
 of the agency, the board, and school districts in implementing and
 maintaining a program for reporting information concerning
 controlled substances, controlled substance analogues, chemical
 precursors, and chemical laboratory apparatus used in educational
 or research activities of those schools and school districts.
 Sec. 570.054.  REGISTRATION APPLICATION. An applicant for
 registration under this subchapter shall submit an application to
 the board on a form prescribed by the board.
 Sec. 570.055.  ISSUANCE OR DENIAL OF REGISTRATION. (a) The
 board may refuse to issue a registration to a person to manufacture,
 distribute, analyze, or conduct research with a controlled
 substance if the person fails or refuses to provide to the board a
 consent form signed by the person granting the board the right to
 inspect the person's controlled premises and any record, controlled
 substance, or other item covered by this chapter.
 (b)  The board may not issue a registration to a person to
 dispense a controlled substance unless the board receives a consent
 form signed by the person granting the board the right to inspect
 records as required by this chapter.
 (c)  The board shall register a person to manufacture,
 distribute, or analyze a controlled substance listed in Schedules
 II through V under Subchapter B, Chapter 481, Health and Safety
 Code, if:
 (1)  the person furnishes the board evidence that the
 person is registered for that purpose under the federal Controlled
 Substances Act;
 (2)  the person has made proper application and paid
 the applicable fee; and
 (3)  the person has not been found by the board to have
 violated a provision of Section 570.056.
 (d)  The board shall register a person to dispense or conduct
 research with a controlled substance listed in Schedules II through
 V under Subchapter B, Chapter 481, Health and Safety Code, if the
 person:
 (1)  is a practitioner licensed under the laws of this
 state;
 (2)  has made proper application and paid the
 applicable fee; and
 (3)  has not been found by the board to have violated a
 provision of Section 570.056.
 Sec. 570.056.  DENIAL; PROBATION. (a) An application for
 registration to manufacture, distribute, analyze, dispense, or
 conduct research with a controlled substance may be denied on a
 finding that the applicant:
 (1)  has furnished material information in an
 application filed under this chapter that the applicant knows is
 false or fraudulent;
 (2)  has been convicted of or placed on community
 supervision or other probation for:
 (A)  a felony;
 (B)  a violation of this chapter or of Chapters
 481-485, Health and Safety Code; or
 (C)  an offense reasonably related to the
 registration sought;
 (3)  has voluntarily surrendered or has had suspended,
 denied, or revoked a registration or application for registration
 to manufacture, distribute, analyze, or dispense controlled
 substances under the federal Controlled Substances Act;
 (4)  has had suspended, probated, or revoked a
 registration or a practitioner's license under the laws of this
 state or another state;
 (5)  has intentionally or knowingly failed to establish
 and maintain effective security controls against diversion of
 controlled substances into other than legitimate medical,
 scientific, or industrial channels as provided by federal
 regulations or laws, this chapter, or a rule adopted under this
 chapter;
 (6)  has intentionally or knowingly failed to maintain
 records required to be kept by this chapter or a rule adopted under
 this chapter;
 (7)  has refused to allow an inspection authorized by
 this chapter or a rule adopted under this chapter;
 (8)  has intentionally or knowingly violated this
 chapter or a rule adopted under this chapter; or
 (9)  has voluntarily surrendered a registration that
 has not been reinstated.
 (b)  Chapter 2001, Government Code, does not apply to a
 denial of a registration under Subsection (a)(2)(A) or (B), (a)(3),
 (a)(4), or (a)(9).
 (c)  For good cause shown, the board may probate the denial
 of an application for registration. If a denial of an application
 is probated, the board may require the person to report regularly to
 the board on matters that are the basis of the probation or may
 limit activities of the person to those prescribed by the board, or
 both.
 Sec. 570.057.  INSPECTION. The board may inspect the
 premises or establishment of an applicant for registration in
 accordance with this chapter.
 Sec. 570.058.  TERM OF REGISTRATION. A registration is valid
 until the first anniversary of the date of issuance and may be
 renewed annually under rules adopted by the board, unless a rule
 provides for a longer period of validity or renewal.
 Sec. 570.059.  REGISTRATION FEES. (a) The board may charge
 a nonrefundable fee of not more than $25 before processing an
 application for annual registration and may charge a late fee of not
 more than $50 for each application for renewal the board receives
 after the date the registration expires.
 (b)  Not later than 60 days before the date the registration
 expires, the board shall send a renewal notice to the registrant at
 the last known address of the registrant according to board
 records.
 (c)  The board shall deposit the fees collected under this
 section to the credit of the general revenue fund.
 Sec. 570.060.  AUTHORIZATION FOR CERTAIN ACTIVITIES. (a)
 The board may authorize the possession, distribution, planting, and
 cultivation of controlled substances by a person engaged in
 research, training animals to detect controlled substances, or
 designing or calibrating devices to detect controlled substances.
 A person who obtains an authorization under this subsection does
 not commit an offense involving the possession or distribution of
 controlled substances to the extent that the possession or
 distribution is authorized.
 (b)  A person may conduct research with or analyze substances
 listed in Schedule I under Subchapter B, Chapter 481, Health and
 Safety Code, in this state only if the person is a practitioner
 registered under federal law to conduct research with or analyze
 those substances and the person provides the board with evidence of
 federal registration.
 Sec. 570.061.  VOLUNTARY SURRENDER, CANCELLATION,
 SUSPENSION, PROBATION, OR REVOCATION OF REGISTRATION. (a) The
 board may accept a voluntary surrender of a registration.
 (b)  The board may cancel, suspend, or revoke a registration,
 place on probation a person whose license has been suspended, or
 reprimand a registrant for a cause described by Section 570.056(a).
 (c)  The board may cancel a registration that was issued in
 error.
 (d)  The board may limit the cancellation, suspension,
 probation, or revocation to the particular schedule or controlled
 substance within a schedule under Subchapter B, Chapter 481, Health
 and Safety Code, for which grounds for cancellation, suspension,
 probation, or revocation exist.
 (e)  After accepting the voluntary surrender of a
 registration or ordering the cancellation, suspension, probation,
 or revocation of a registration, the board may seize or place under
 seal all controlled substances owned or possessed by the registrant
 under the authority of that registration. If the board orders the
 cancellation, suspension, probation, or revocation of a
 registration, a disposition may not be made of the seized or sealed
 substances until the time for administrative appeal of the order
 has elapsed or until all appeals have been concluded, except that
 the board may order the sale of perishable substances and deposit of
 the proceeds of the sale in a special interest-bearing account in
 the general revenue fund. When a surrender or cancellation,
 suspension, probation, or revocation order becomes final, all
 controlled substances may be forfeited to this state as provided
 under Subchapter E, Chapter 481, Health and Safety Code.
 (f)  The operation of a registrant in violation of this
 section is a public nuisance, and the board may apply to any court
 of competent jurisdiction for an injunction suspending the
 registration of the registrant.
 (g)  Chapter 2001, Government Code, applies to a proceeding
 under this section to the extent that that chapter does not conflict
 with this subchapter. Chapter 2001, Government Code, does not
 apply to a cancellation, suspension, probation, or revocation of a
 registration for a cause described by Section 570.056(a)(2)(A) or
 (B), (a)(3), (a)(4), or (a)(9).
 (h)  The board shall promptly notify appropriate state
 agencies of an order accepting a voluntary surrender or canceling,
 suspending, probating, or revoking a registration and the
 forfeiture of controlled substances.
 (i)  The board shall give written notice to the applicant or
 registrant of the acceptance of a voluntary surrender of a
 registration, or of the cancellation, suspension, probation,
 revocation, or denial of a registration. The notice shall be sent
 by certified mail, return receipt requested, to the most current
 address of the applicant or registrant contained in board files.
 (j)  After a voluntary surrender, cancellation, suspension,
 probation, revocation, or denial of a registration, on petition of
 the applicant or former registrant, the board may issue or
 reinstate the registration for good cause shown by the petitioner.
 Sec. 570.062.  RECORDS. (a) A person who is registered to
 manufacture, distribute, analyze, or dispense a controlled
 substance shall keep records and maintain inventories in compliance
 with recordkeeping and inventory requirements of federal law and
 with additional rules adopted by the board.
 (b)  The pharmacist-in-charge of a pharmacy shall maintain
 the records and inventories required by this section.
 (c)  A record required by this section must be made at the
 time of the transaction that is the basis of the record. A record or
 inventory required by this section must be kept or maintained for at
 least two years after the date the record or inventory is made.
 Sec. 570.063.  CONFIDENTIALITY. (a) The board may
 authorize a person engaged in research on the use and effects of a
 controlled substance to withhold the names and other identifying
 characteristics of individuals who are the subjects of the
 research. A person who obtains the authorization may not be
 compelled in a civil, criminal, administrative, legislative, or
 other proceeding to identify the individuals who are the subjects
 of the research for which the authorization is obtained.
 (b)  Except as provided by Section 570.069, a practitioner
 engaged in authorized medical practice or research may not be
 required to furnish the name or identity of a patient or research
 subject to the board, the Department of State Health Services,
 Division of Mental Health and Substance Abuse Services, or any
 other agency, public official, or law enforcement officer. A
 practitioner may not be compelled in a state or local civil,
 criminal, administrative, legislative, or other proceeding to
 furnish the name or identity of an individual that the practitioner
 is obligated to keep confidential.
 (c)  The board may not provide to a federal, state, or local
 law enforcement agency the name or identity of a patient or research
 subject whose identity could not be obtained under Subsection (b).
 Sec. 570.064.  ORDER FORMS. A registrant may not distribute
 or order a controlled substance listed in Schedule I or II under
 Subchapter B, Chapter 481, Health and Safety Code, to or from
 another registrant except under an order form. A registrant
 complying with the federal law concerning order forms is in
 compliance with this section.
 Sec. 570.065.  ADMINISTERING OR DISPENSING SCHEDULE I
 CONTROLLED SUBSTANCE. Except as permitted by this chapter, a
 person may not administer or dispense a controlled substance listed
 in Schedule I under Subchapter B, Chapter 481, Health and Safety
 Code.
 Sec. 570.066.  MEDICAL PURPOSE REQUIRED BEFORE PRESCRIBING,
 DISPENSING, DELIVERING, OR ADMINISTERING CONTROLLED SUBSTANCE.
 (a) A practitioner defined by Section 481.002(39)(A), Health and
 Safety Code, may not prescribe, dispense, deliver, or administer a
 controlled substance or cause a controlled substance to be
 administered under the practitioner's direction and supervision
 except for a valid medical purpose and in the course of medical
 practice.
 (b)  An anabolic steroid or human growth hormone listed in
 Schedule III of Subchapter B, Chapter 481, Health and Safety Code,
 may only be:
 (1)  dispensed, prescribed, delivered, or administered
 by a practitioner, as defined by Section 481.002(39)(A), Health and
 Safety Code, for a valid medical purpose and in the course of
 professional practice; or
 (2)  dispensed or delivered by a pharmacist according
 to a prescription issued by a practitioner, as defined by Section
 481.002(39)(A) or (C), Health and Safety Code, for a valid medical
 purpose and in the course of professional practice.
 (c)  For the purposes of Subsection (b), bodybuilding,
 muscle enhancement, or increasing muscle bulk or strength through
 the use of an anabolic steroid or human growth hormone listed in
 Schedule III of Subchapter B, Chapter 481, Health and Safety Code,
 by a person who is in good health is not a valid medical purpose.
 Sec. 570.067.  MEDICAL PURPOSE REQUIRED BEFORE DISTRIBUTING
 OR DISPENSING SCHEDULE V CONTROLLED SUBSTANCE. A person may not
 distribute or dispense a controlled substance listed in Schedule V
 under Subchapter B, Chapter 481, Health and Safety Code, except for
 a valid medical purpose.
 Sec. 570.068.  COMMUNICATION OF PRESCRIPTIONS BY AGENT. (a)
 Only a practitioner defined by Section 481.002(39)(A), Health and
 Safety Code, and an agent designated in writing by the practitioner
 in accordance with rules adopted by the board may communicate a
 prescription by telephone. A pharmacy that receives a
 telephonically communicated prescription shall promptly write the
 prescription and file and retain the prescription in the manner
 required by this subchapter. A practitioner who designates an
 agent to communicate prescriptions shall maintain the written
 designation of the agent in the practitioner's usual place of
 business and shall make the designation available for inspection by
 investigators for the Texas Medical Board, the State Board of
 Dental Examiners, the State Board of Veterinary Medical Examiners,
 and the board. A practitioner who designates a different agent
 shall designate that agent in writing and maintain the designation
 in the same manner in which the practitioner initially designated
 an agent under this section.
 (b)  On the request of a pharmacist, a practitioner shall
 furnish a copy of the written designation authorized under
 Subsection (a).
 (c)  This section does not relieve a practitioner or the
 practitioner's designated agent from the requirements of
 Subchapter A, Chapter 562. A practitioner is personally responsible
 for the actions of the designated agent in communicating a
 prescription to a pharmacist.
 Sec. 570.069.  PRESCRIPTIONS. (a) A pharmacist may not:
 (1)  dispense or deliver a controlled substance or
 cause a controlled substance to be dispensed or delivered under the
 pharmacist's direction or supervision except under a valid
 prescription and in the course of professional practice;
 (2)  dispense a controlled substance if the pharmacist
 knows or should have known that the prescription was issued without
 a valid patient-practitioner relationship;
 (3)  fill a prescription that is not prepared or issued
 as prescribed by this chapter;
 (4)  permit or allow a person who is not a licensed
 pharmacist or pharmacist intern to dispense, distribute, or in any
 other manner deliver a controlled substance even if under the
 supervision of a pharmacist, except that after the pharmacist or
 pharmacist intern has fulfilled his professional and legal
 responsibilities, a nonpharmacist may complete the actual cash or
 credit transaction and delivery; or
 (5)  permit the delivery of a controlled substance to
 any person not known to the pharmacist, the pharmacist intern, or
 the person authorized by the pharmacist to deliver the controlled
 substance without first requiring identification of the person
 taking possession of the controlled substance, except as provided
 by Subsection (o).
 (b)  Except in an emergency as defined by rule of the board or
 as provided by Subsection (p), a person may not dispense or
 administer a controlled substance listed in Schedule II under
 Subchapter B, Chapter 481, Health and Safety Code, without the
 written prescription of a practitioner. In an emergency, a person
 may dispense or administer a controlled substance listed in
 Schedule II on the oral or telephonically communicated prescription
 of a practitioner. The person who administers or dispenses the
 substance shall:
 (1)  if the person is a prescribing practitioner or a
 pharmacist, promptly comply with Subsection (c); or
 (2)  if the person is not a prescribing practitioner or
 a pharmacist, promptly write the oral or telephonically
 communicated prescription and include in the written record of the
 prescription the name, address, and federal Drug Enforcement
 Administration number of the prescribing practitioner.
 (c)  Not later than the seventh day after the date a
 prescribing practitioner authorizes an emergency oral or
 telephonically communicated prescription, the prescribing
 practitioner shall cause a written prescription to be delivered in
 person or mailed to the dispensing pharmacist at the pharmacy where
 the prescription was dispensed. The envelope of a prescription
 delivered by mail must be postmarked not later than the seventh day
 after the date the prescription was authorized.
 (d)  Except as specified in Subsections (f) and (g), the
 board, by rule and in consultation with the Texas Medical Board,
 shall establish the period after the date on which the prescription
 is issued that a person may fill a prescription for a controlled
 substance listed in Schedule II under Subchapter B, Chapter 481,
 Health and Safety Code. A person may not refill a prescription for
 a substance listed in Schedule II.
 (e)  Notwithstanding Subsection (d), a prescribing
 practitioner may issue multiple prescriptions authorizing the
 patient to receive a total of up to a 90-day supply of a controlled
 substance listed in Schedule II under Subchapter B, Chapter 481,
 Health and Safety Code, if:
 (1)  each separate prescription is issued for a
 legitimate medical purpose by a prescribing practitioner acting in
 the usual course of professional practice;
 (2)  the prescribing practitioner provides written
 instructions on each prescription to be filled at a later date
 indicating the earliest date on which a pharmacy may fill each
 prescription;
 (3)  the prescribing practitioner concludes that
 providing the patient with multiple prescriptions in this manner
 does not create an undue risk of diversion or abuse; and
 (4)  the issuance of multiple prescriptions complies
 with other applicable state and federal laws.
 (f)  The partial filling of a prescription for a controlled
 substance listed in Schedule II under Subchapter B, Chapter 481,
 Health and Safety Code, is permissible, if the pharmacist is unable
 to supply the full quantity called for in a written or emergency
 oral prescription and the pharmacist makes a notation of the
 quantity supplied on the face of the written prescription or
 written record of the emergency oral prescription. The remaining
 portion of the prescription may be filled within 72 hours of the
 first partial filling, except that if the remaining portion is not
 or cannot be filled within the 72-hour period, the pharmacist shall
 notify the prescribing practitioner. No further quantity may be
 supplied beyond 72 hours without a new prescription.
 (g)  A prescription for a Schedule II controlled substance
 under Subchapter B, Chapter 481, Health and Safety Code, that is
 written for a patient in a long-term care facility (LTCF) or for a
 patient with a medical diagnosis documenting a terminal illness may
 be filled in partial quantities to include individual dosage units.
 If there is any question about whether a patient may be classified
 as having a terminal illness, the pharmacist must contact the
 practitioner before partially filling the prescription. Both the
 pharmacist and the practitioner have a corresponding
 responsibility to assure that the controlled substance is for a
 terminally ill patient. The pharmacist must record on the
 prescription whether the patient is "terminally ill" or an "LTCF
 patient." A prescription that is partially filled and does not
 contain the notation "terminally ill" or "LTCF patient" is
 considered to have been filled in violation of this chapter. For
 each partial filling, the dispensing pharmacist shall record on the
 back of the prescription the date of the partial filling, the
 quantity dispensed, the remaining quantity authorized to be
 dispensed, and the identification of the dispensing pharmacist.
 Before any subsequent partial filling, the pharmacist must
 determine that the additional partial filling is necessary. The
 total quantity of Schedule II controlled substances dispensed in
 all partial fillings may not exceed the total quantity prescribed.
 Schedule II prescriptions for patients in a long-term care facility
 or patients with a medical diagnosis documenting a terminal illness
 are valid for a period not to exceed 60 days following the issue
 date unless sooner terminated by discontinuance of the medication.
 (h)  A person may not dispense a controlled substance in
 Schedule III or IV under Subchapter B, Chapter 481, Health and
 Safety Code, that is a prescription drug under the federal Food,
 Drug, and Cosmetic Act (21 U.S.C. Section 301 et seq.) without a
 written, oral, or telephonically or electronically communicated
 prescription of a practitioner defined by Section 551.003(34)(A),
 (C), or (D), and only if the pharmacist determines that the
 prescription was issued for a valid medical purpose and in the
 course of professional practice. A prescription for a controlled
 substance listed in Schedule III or IV may not be filled or refilled
 later than six months after the date on which the prescription is
 issued and may not be refilled more than five times, unless the
 prescription is renewed by the practitioner. A prescription under
 this subsection must comply with other applicable state and federal
 laws.
 (i)  A person may not dispense a controlled substance listed
 in Schedule V under Subchapter B, Chapter 481, Health and Safety
 Code, and containing 200 milligrams or less of codeine, or any of
 its salts, per 100 milliliters or per 100 grams, or containing 100
 milligrams or less of dihydrocodeine, or any of its salts, per 100
 milliliters or per 100 grams, without the prescription of a
 practitioner defined by Section 481.002(39)(A), Health and Safety
 Code, except that a practitioner may dispense the substance
 directly to an ultimate user. A prescription issued under this
 subsection may not be filled or refilled later than six months after
 the date the prescription is issued and may not be refilled more
 than five times, unless the prescription is renewed by the
 practitioner.
 (j)  A practitioner or institutional practitioner may not
 allow a patient, on the patient's release from the hospital, to
 possess a controlled substance prescribed by the practitioner
 unless:
 (1)  the substance was dispensed under a medication
 order while the patient was admitted to the hospital;
 (2)  the substance is in a properly labeled container;
 and
 (3)  the patient possesses not more than a seven-day
 supply of the substance.
 (k)  A prescription for a controlled substance must show:
 (1)  the quantity of the substance prescribed:
 (A)  numerically, followed by the number written
 as a word, if the prescription is written; or
 (B)  if the prescription is communicated orally or
 telephonically, as transcribed by the receiving pharmacist;
 (2)  the date of issue;
 (3)  the name, address, and date of birth or age of the
 patient or, if the controlled substance is prescribed for an
 animal, the species of the animal and the name and address of its
 owner;
 (4)  the name and strength of the controlled substance
 prescribed;
 (5)  the directions for use of the controlled
 substance;
 (6)  the intended use of the substance prescribed
 unless the practitioner determines the furnishing of this
 information is not in the best interest of the patient;
 (7)  the legibly printed or stamped name, address,
 federal Drug Enforcement Administration registration number, and
 telephone number of the practitioner at the practitioner's usual
 place of business; and
 (8)  if the prescription is handwritten, the signature
 of the prescribing practitioner.
 (l)  A pharmacist may exercise the pharmacist's professional
 judgment in refilling a prescription for a controlled substance in
 Schedule III, IV, or V under Subchapter B, Chapter 481, Health and
 Safety Code, without the authorization of the prescribing
 practitioner provided:
 (1)  failure to refill the prescription might result in
 an interruption of a therapeutic regimen or create patient
 suffering;
 (2)  either:
 (A)  a natural or manmade disaster has occurred
 which prohibits the pharmacist from being able to contact the
 practitioner; or
 (B)  the pharmacist is unable to contact the
 practitioner after reasonable effort;
 (3)  the quantity of prescription drug dispensed does
 not exceed a 72-hour supply;
 (4)  the pharmacist informs the patient or the
 patient's agent at the time of dispensing that the refill is being
 provided without that authorization and that authorization of the
 practitioner is required for future refills; and
 (5)  the pharmacist informs the practitioner of the
 emergency refill at the earliest reasonable time.
 (m)  Notwithstanding Subsection (l), in the event of a
 natural or manmade disaster, a pharmacist may dispense not more
 than a 30-day supply of a prescription drug, other than a controlled
 substance listed in Schedule II under Subchapter B, Chapter 481,
 Health and Safety Code, without the authorization of the
 prescribing practitioner if:
 (1)  failure to refill the prescription might result in
 an interruption of a therapeutic regimen or create patient
 suffering;
 (2)  the natural or manmade disaster prohibits the
 pharmacist from being able to contact the practitioner;
 (3)  the governor has declared a state of disaster
 under Chapter 418, Government Code; and
 (4)  the board, through its executive director, has
 notified pharmacies in this state that pharmacists may dispense up
 to a 30-day supply of a prescription drug.
 (n)  The prescribing practitioner is not liable for an act or
 omission by a pharmacist in dispensing a prescription drug under
 Subsection (m).
 (o)  A pharmacist may permit the delivery of a controlled
 substance by an authorized delivery person, by a person known to the
 pharmacist, a pharmacist intern, or the authorized delivery person,
 or by mail to the person or address of the person authorized by the
 prescription to receive the controlled substance. If a pharmacist
 permits delivery of a controlled substance under this subsection,
 the pharmacist shall retain in the records of the pharmacy for a
 period of not less than two years:
 (1)  the name of the authorized delivery person, if
 delivery is made by that person;
 (2)  the name of the person known to the pharmacist, a
 pharmacist intern, or the authorized delivery person if delivery is
 made by that person; or
 (3)  the mailing address to which delivery is made, if
 delivery is made by mail.
 (p)  A pharmacist may permit the delivery of a controlled
 substance to a person not known to the pharmacist, a pharmacist
 intern, or the authorized delivery person without first requiring
 the identification of the person to whom the controlled substance
 is delivered if the pharmacist determines that an emergency exists
 and that the controlled substance is needed for the immediate
 well-being of the patient for whom the controlled substance is
 prescribed. If a pharmacist permits delivery of a controlled
 substance under this subsection, the pharmacist shall retain in the
 records of the pharmacy for a period of not less than two years all
 information relevant to the delivery known to the pharmacist,
 including the name, address, and date of birth or age of the person
 to whom the controlled substance is delivered.
 (q)  A pharmacist may dispense a Schedule II controlled
 substance listed in Subchapter B, Chapter 481, Health and Safety
 Code, under a facsimile copy of a prescription completed in the
 manner required by board rule and transmitted by the practitioner
 or the practitioner's agent to the pharmacy if:
 (1)  the prescription is written for:
 (A)  a Schedule II narcotic or nonnarcotic
 substance for a patient in a long-term care facility (LTCF), and the
 practitioner notes on the prescription "LTCF patient";
 (B)  a Schedule II narcotic product to be
 compounded for the direct administration to a patient by
 parenteral, intravenous, intramuscular, subcutaneous, or
 intraspinal infusion; or
 (C)  a Schedule II narcotic substance for a
 patient with a medical diagnosis documenting a terminal illness or
 a patient enrolled in a hospice care program certified or paid for
 by Medicare under Title XVIII, Social Security Act (42 U.S.C.
 Section 1395 et seq.), by Medicaid, or by a hospice program that is
 licensed under Chapter 142, Health and Safety Code, and the
 practitioner or the practitioner's agent notes on the prescription
 "terminally ill" or "hospice patient"; and
 (2)  after transmitting the prescription, the
 prescribing practitioner or the practitioner's agent:
 (A)  writes across the face of the prescription
 "VOID--sent by fax to (name and telephone number of receiving
 pharmacy)"; and
 (B)  files the prescription in the patient's
 medical records instead of delivering it to the patient.
   (r)  On receipt of the prescription, the dispensing pharmacy
 shall file the facsimile copy of the prescription and shall send
 information relating to the prescription to the board as required
 by board rule.
 (s)  A pharmacy in this state may fill a prescription for a
 controlled substance listed in Schedule II under Subchapter B,
 Chapter 481, Health and Safety Code, issued by a practitioner in
 another state if:
 (1)  a share of the pharmacy's business involves the
 dispensing and delivery or mailing of controlled substances;
 (2)  the prescription is issued by a prescribing
 practitioner in the other state in the ordinary course of practice;
 and
 (3)  the prescription is filled in compliance with a
 written plan providing the manner in which the pharmacy may fill a
 Schedule II prescription issued by a practitioner in another state
 that:
 (A)  is submitted by the pharmacy to the board;
 and
 (B)  is approved by the board.
 (t)  A prescription for a controlled substance must be on a
 tamper-evident prescription form or an electronic prescription
 that meets the requirements specified by the board by rule.
 [Sections 570.070-570.100 reserved for expansion]
 SUBCHAPTER C. CONTROLLED SUBSTANCE PRESCRIPTION DRUG ORDER
 MONITORING SYSTEM
 Sec. 570.101.  ESTABLISHMENT OF SYSTEM. (a) The board shall
 establish an electronic system for:
 (1)  tracking prescription drug orders for Schedule
 II-V controlled substances as listed in Subchapter B, Chapter 481,
 Health and Safety Code;
 (2)  monitoring Schedule II-V controlled substances
 that are dispensed in this state by a pharmacy or dispensed to an
 address in this state by a pharmacy licensed in this state;
 (3)  allowing a practitioner to have real-time Internet
 access to data in the system for prescribing purposes and for
 patient safety;
 (4)  allowing licensing agencies of practitioners
 authorized to prescribe Schedule II-V controlled substances to
 access the data; and
 (5)  alerting the board, licensing agencies of
 practitioners authorized to prescribe Schedule II-V controlled
 substances, or law enforcement agencies when episodes of
 inappropriate activity are identified by the system.
 (b)  The board by rule shall design and implement a system
 for submission of information to the board by electronic or other
 means and for retrieval of information submitted to the board under
 this subchapter. The board shall use automated information
 security techniques and devices to preclude improper access to the
 information.
 Sec. 570.102.  DATA SUBMITTED TO BOARD. (a) Each pharmacy
 licensed in this state that is authorized to dispense a controlled
 substance shall report to the board the data required by this
 section in a timely manner as prescribed by board rule, except that
 reporting may not be required for:
 (1)  a drug administered directly to a patient; or
 (2)  a drug dispensed by a practitioner at a health care
 facility licensed in this state, provided that the quantity
 dispensed is limited to an amount adequate to treat the patient for
 a maximum of 48 hours.
 (b)  Data to be reported by a pharmacy for each controlled
 substance prescription drug order that is dispensed shall include
 the following:
 (1)  a name and date of birth or age of the patient, or
 if the controlled substance is prescribed for an animal, the
 species of the animal and the name and address of its owner;
 (2)  the name and strength of the drug dispensed;
 (3)  the date of dispensing;
 (4)  the quantity dispensed;
 (5)  the practitioner's name, address, and federal Drug
 Enforcement Administration number;
 (6)  the name and address of the dispensing pharmacy;
 and
 (7)  any other information required by board rule.
 (c)  A pharmacy or pharmacist shall provide the data required
 under Subsection (b) to the board in the electronic format
 specified by board rule unless a waiver has been granted by the
 board to an individual pharmacy.
 (d)  The board shall establish acceptable error tolerance
 rates for data submitted under this section. A pharmacy or
 pharmacist who submits the data shall ensure that reports fall
 within the acceptable tolerances.
 (e)  A pharmacy or pharmacist who submits incomplete or
 inaccurate data shall correct the data on notification by the board
 if the pharmacy or pharmacist exceeds the acceptable error
 tolerance rates established by the board.
 Sec. 570.103.  DISCLOSURE OF DATA. (a) The board may not
 permit any person to have access to information submitted to the
 board under this subchapter except:
 (1)  an investigator for the Texas Medical Board, the
 Texas State Board of Podiatric Medical Examiners, the State Board
 of Dental Examiners, the State Board of Veterinary Medical
 Examiners, the Texas Board of Nursing, the board, or an agency in
 this state that licenses a practitioner who is authorized by state
 law to prescribe or dispense controlled substances; or
 (2)  if the board finds that proper need has been shown
 to the board:
 (A)  an officer of the Department of Public
 Safety, a law enforcement or prosecutorial official engaged in the
 administration, investigation, or enforcement of this chapter,
 Chapter 481, Health and Safety Code, or another law governing
 illicit drugs in this state or another state;
 (B)  a pharmacist or practitioner who is a
 physician, dentist, veterinarian, podiatrist, or advanced practice
 nurse or physician assistant or other health care professional
 authorized to dispense or prescribe controlled substances in this
 state and is inquiring about a recent Schedule II-V prescription
 drug order history of a particular patient of the practitioner; or
 (C)  a pharmacist or practitioner who is inquiring
 about the person's own dispensing or prescribing activity.
 (b)  This section does not prohibit the board from creating,
 using, or disclosing statistical data about information received by
 the board under this section if the board removes any information
 reasonably likely to reveal the identity of each patient,
 practitioner, or other person who is a subject of the information.
 (c)  Information submitted to the board under this section
 may be used only for:
 (1)  the administration, investigation, or enforcement
 of this chapter or another law governing illicit drugs in this state
 or another state;
 (2)  investigatory or evidentiary purposes in
 connection with the functions of an agency listed in Subsection
 (a)(1); or
 (3)  dissemination by the board to the public in the
 form of a statistical tabulation or report if all information
 reasonably likely to reveal the identity of each patient,
 practitioner, or other person who is a subject of the information
 has been removed.
 (d)  Except as otherwise provided by this subsection, the
 board shall remove from the information retrieval system, destroy,
 and make irretrievable the record of the identity of a patient
 submitted under this section to the board not later than the end of
 the 12th calendar month after the month in which the identity is
 entered into the system. The board may retain a patient identity
 that is necessary for use in a specific ongoing investigation
 conducted in accordance with this section until the 30th day after
 the end of the month in which the necessity for retention of the
 identity ends.
 (e)  If the board permits access to information under
 Subsection (a)(2) relating to a person licensed or regulated by an
 agency listed in Subsection (a)(1), the board shall notify and
 cooperate with that agency regarding the disposition of the matter
 before taking action against the person, unless the board
 determines that notification is reasonably likely to interfere with
 an administrative or criminal investigation or prosecution.
 (f)  If the board permits access to information under
 Subsection (a)(2)(A) relating to a person licensed or regulated by
 an agency listed in Subsection (a)(1), the board shall notify that
 agency of the disclosure of the information not later than the 10th
 working day after the date the information is disclosed.
 (g)  Information submitted to the board under this
 subchapter is confidential and remains confidential regardless of
 whether the board permits access to the information under this
 section.
 [Sections 570.104-570.150 reserved for expansion]
 SUBCHAPTER D. CRIMINAL PENALTIES
 Sec. 570.151.  OFFENSE: FAILURE TO TRANSMIT DATA. (a) A
 person commits an offense if the person:
 (1)  is a pharmacist or owner of a pharmacy required to
 submit data under Section 570.102; and
 (2)  intentionally fails to transmit to the board the
 data required by Section 570.102.
 (b)  Except as provided by Subsection (c), an offense under
 Subsection (a) is a Class A misdemeanor.
 (c)  An offense under Subsection (a) is a state jail felony
 if it is shown on the trial of the offense that the person has been
 previously convicted of an offense under this section.
 Sec. 570.152.  OFFENSE: DISCLOSURE OF DATA. (a) A person
 commits an offense if the person discloses information in violation
 of Section 570.103.
 (b)  Except as provided by Subsection (c), an offense under
 Subsection (a) is a state jail felony.
 (c)  An offense under Subsection (a) is a felony of the third
 degree if it is shown on the trial of the offense that the person has
 been previously convicted of an offense under this section.
 SECTION 2.  Section 481.002(45), Health and Safety Code, is
 amended to read as follows:
 (45)  "Registrant" means a person who is registered
 under Subchapter B, Chapter 570, Occupations Code [Section
 481.063].
 SECTION 3.  Section 481.003(a), Health and Safety Code, is
 amended to read as follows:
 (a)  The director may adopt rules to administer and enforce
 this chapter, except that the Texas State Board of Pharmacy may
 adopt rules relating to the registration to manufacture,
 distribute, prescribe, possess, analyze, or dispense a controlled
 substance in this state and issuance of prescriptions and
 information submitted in connection with those prescriptions. The
 department and the board by rule shall adopt a memorandum of
 understanding outlining the responsibilities of each agency in
 regulating controlled substances under this chapter.
 SECTION 4.  Section 481.061, Health and Safety Code, is
 amended to read as follows:
 Sec. 481.061.  REGISTRATION REQUIRED. A [(a)     Except as
 otherwise provided by this chapter, a] person who is not registered
 with the Texas State Board of Pharmacy under Chapter 570,
 Occupations Code, [a registrant] may not manufacture, distribute,
 prescribe, possess, analyze, or dispense a controlled substance in
 this state.
 [(b)     A person who is registered by the director to
 manufacture, distribute, analyze, dispense, or conduct research
 with a controlled substance may possess, manufacture, distribute,
 analyze, dispense, or conduct research with that substance to the
 extent authorized by the person's registration and in conformity
 with this chapter.
 [(c)     A separate registration is required at each principal
 place of business or professional practice where the applicant
 manufactures, distributes, analyzes, dispenses, or possesses a
 controlled substance. However, the director may not require
 separate registration for a practitioner engaged in research with a
 nonnarcotic controlled substance listed in Schedules II through V
 if the registrant is already registered under this subchapter in
 another capacity.]
 SECTION 5.  Section 481.077(c), Health and Safety Code, is
 amended to read as follows:
 (c)  This section and Section 481.078 do not apply to a
 person to whom a registration has been issued under Subchapter B,
 Chapter 570, Occupations Code [Section 481.063].
 SECTION 6.  Section 481.080(d), Health and Safety Code, is
 amended to read as follows:
 (d)  This section and Section 481.081 do not apply to a
 person to whom a registration has been issued under Subchapter B,
 Chapter 570, Occupations Code [Section 481.063].
 SECTION 7.  Section 481.124(b), Health and Safety Code, is
 amended to read as follows:
 (b)  For purposes of this section, an intent to unlawfully
 manufacture the controlled substance methamphetamine is presumed
 if the actor possesses or transports:
 (1)  anhydrous ammonia in a container or receptacle
 that is not designed and manufactured to lawfully hold or transport
 anhydrous ammonia;
 (2)  lithium metal removed from a battery and immersed
 in kerosene, mineral spirits, or similar liquid that prevents or
 retards hydration; or
 (3)  in one container, vehicle, or building,
 phenylacetic acid, or more than nine grams, three containers
 packaged for retail sale, or 300 tablets or capsules of a product
 containing ephedrine or pseudoephedrine, and:
 (A)  anhydrous ammonia;
 (B)  at least three of the following categories of
 substances commonly used in the manufacture of methamphetamine:
 (i)  lithium or sodium metal or red
 phosphorus, iodine, or iodine crystals;
 (ii)  lye, sulfuric acid, hydrochloric acid,
 or muriatic acid;
 (iii)  an organic solvent, including ethyl
 ether, alcohol, or acetone;
 (iv)  a petroleum distillate, including
 naphtha, paint thinner, or charcoal lighter fluid; or
 (v)  aquarium, rock, or table salt; or
 (C)  at least three of the following items:
 (i)  an item of equipment subject to
 regulation under Section 481.080, if the person is not registered
 under Subchapter B, Chapter 570, Occupations Code [Section
 481.063]; or
 (ii)  glassware, a plastic or metal
 container, tubing, a hose, or other item specially designed,
 assembled, or adapted for use in the manufacture, processing,
 analyzing, storing, or concealing of methamphetamine.
 SECTION 8.  Section 481.127(a), Health and Safety Code, is
 amended to read as follows:
 (a)  A person commits an offense if the person knowingly
 gives, permits, or obtains unauthorized access to information
 submitted to the director under Section 570.069, Occupations Code
 [481.075].
 SECTION 9.  Section 481.128(a), Health and Safety Code, is
 amended to read as follows:
 (a)  A registrant or dispenser commits an offense if the
 registrant or dispenser knowingly:
 (1)  distributes, delivers, administers, or dispenses
 a controlled substance in violation of Sections 570.065-570.069,
 Occupations Code [481.070-481.075];
 (2)  manufactures a controlled substance not
 authorized by the person's registration or distributes or dispenses
 a controlled substance not authorized by the person's registration
 to another registrant or other person;
 (3)  refuses or fails to make, keep, or furnish a
 record, report, notification, order form, statement, invoice, or
 information required by this chapter;
 (4)  prints, manufactures, possesses, or produces an
 official prescription form without the approval of the director;
 (5)  delivers or possesses a counterfeit official
 prescription form;
 (6)  refuses an entry into a premise for an inspection
 authorized by this chapter;
 (7)  [refuses or fails to return an official
 prescription form as required by Section 481.075(k);
 [(8)]  refuses or fails to make, keep, or furnish a
 record, report, notification, order form, statement, invoice, or
 information required by a rule adopted by the director; or
 (8) [(9)]  refuses or fails to maintain security
 required by this chapter or a rule adopted under this chapter.
 SECTION 10.  Section 481.129(a), Health and Safety Code, is
 amended to read as follows:
 (a)  A person commits an offense if the person knowingly:
 (1)  distributes as a registrant or dispenser a
 controlled substance listed in Schedule I or II, unless the person
 distributes the controlled substance under an order form as
 required by Section 570.064, Occupations Code [481.069];
 (2)  uses in the course of manufacturing, prescribing,
 or distributing a controlled substance a registration number that
 is fictitious, revoked, suspended, or issued to another person;
 (3)  issues a prescription bearing a forged or
 fictitious signature;
 (4)  uses a prescription issued to another person to
 prescribe a Schedule II controlled substance;
 (5)  possesses, obtains, or attempts to possess or
 obtain a controlled substance or an increased quantity of a
 controlled substance:
 (A)  by misrepresentation, fraud, forgery,
 deception, or subterfuge;
 (B)  through use of a fraudulent prescription
 form; or
 (C)  through use of a fraudulent oral or
 telephonically communicated prescription; or
 (6)  furnishes false or fraudulent material
 information in or omits material information from an application,
 report, record, or other document required to be kept or filed under
 this chapter.
 SECTION 11.  Section 481.159(a), Health and Safety Code, is
 amended to read as follows:
 (a)  If a district court orders the forfeiture of a
 controlled substance property or plant under Chapter 59, Code of
 Criminal Procedure, or under this code, the court shall also order a
 law enforcement agency to:
 (1)  retain the property or plant for its official
 purposes, including use in the investigation of offenses under this
 code;
 (2)  deliver the property or plant to a government
 agency for official purposes;
 (3)  deliver the property or plant to a person
 authorized by the court to receive it;
 (4)  deliver the property or plant to a person
 authorized by the director to receive it for a purpose described by
 Section 570.060(a), Occupations Code [481.065(a)]; or
 (5)  destroy the property or plant that is not
 otherwise disposed of in the manner prescribed by this subchapter.
 SECTION 12.  Section 481.186(a), Health and Safety Code, is
 amended to read as follows:
 (a)  The director shall cooperate with federal and state
 agencies in discharging the director's responsibilities concerning
 traffic in controlled substances and in suppressing the abuse of
 controlled substances. The director may:
 (1)  arrange for the exchange of information among
 government officials concerning the use and abuse of controlled
 substances;
 (2)  cooperate in and coordinate training programs
 concerning controlled substances law enforcement at local and state
 levels;
 (3)  cooperate with the Federal Drug Enforcement
 Administration and state agencies by establishing a centralized
 unit to accept, catalog, file, and collect statistics, including
 records on drug-dependent persons and other controlled substance
 law offenders in this state and, except as provided by Section
 570.063, Occupations Code [481.068], make the information
 available for federal, state, and local law enforcement purposes;
 and
 (4)  conduct programs of eradication aimed at
 destroying wild or illegal growth of plant species from which
 controlled substances may be extracted.
 SECTION 13.  Section 565.003(b), Occupations Code, is
 amended to read as follows:
 (b)  Unless compliance would violate the pharmacy or drug
 statutes or rules in the state in which the pharmacy is located the
 board may discipline an applicant for or the holder of a Class E
 pharmacy license if the board finds that the applicant or license
 holder has failed to comply with:
 (1)  Section 570.069 [481.074 or 481.075, Health and
 Safety Code];
 (2)  Texas substitution requirements regarding:
 (A)  the practitioner's directions concerning
 generic substitution;
 (B)  the patient's right to refuse generic
 substitution; or
 (C)  notification to the patient of the patient's
 right to refuse substitution;
 (3)  any board rule relating to providing drug
 information to the patient or the patient's agent in written form or
 by telephone; or
 (4)  any board rule adopted under Section 554.051(a)
 and determined by the board to be applicable under Section
 554.051(b).
 SECTION 14.  The following provisions are repealed:
 (1)  Sections 481.002(10), (20), (28), (35), (42),
 (46), (47), and (48), Health and Safety Code;
 (2)  Sections 481.062, 481.0621, 481.063, 481.064,
 481.065, 481.066, 481.067, 481.068, 481.069, 481.070, 481.071,
 481.072, 481.073, 481.074, 481.075, 481.076, and 481.0761, Health
 and Safety Code;
 (3)  Subchapter H, Chapter 481, Health and Safety Code;
 (4)  Section 157.059(c), Occupations Code; and
 (5)  Section 552.118, Government Code.
 SECTION 15.  Section 8, Chapter 1391 (S.B. 1879), Acts of the
 80th Legislature, Regular Session, 2007, is repealed.
 SECTION 16.  (a) An advisory committee is created to advise
 the Texas State Board of Pharmacy on the implementation of Chapter
 570, Occupations Code, as added by this Act.
 (b)  The advisory committee is composed of:
 (1)  the executive board of the Texas State Board of
 Pharmacy or the executive board's designee;
 (2)  a physician appointed by the governor;
 (3)  a pharmacist appointed by the governor;
 (4)  a physician appointed by the lieutenant governor;
 (5)  a pharmacist appointed by the lieutenant governor;
 (6)  a physician appointed by the governor from a list
 of names submitted by the speaker of the house of representatives;
 (7)  a pharmacist appointed by the governor from a list
 of names submitted by the speaker of the house of representatives;
 and
 (8)  one member from each of the following boards:
 (A)  Texas Medical Board;
 (B)  Texas State Board of Pharmacy;
 (C)  State Board of Dental Examiners; and
 (D)  Texas Board of Nursing.
 (c)  The executive board of the Texas State Board of Pharmacy
 or the executive board's designee is the presiding officer of the
 advisory committee. The committee shall meet at the call of the
 presiding officer or at the request of any three members other than
 the presiding officer.
 (d)  The advisory committee shall:
 (1)  develop recommendations regarding the
 implementation of the electronic system for monitoring controlled
 substances established under Chapter 570, Occupations Code;
 (2)  develop recommendations on the data that should be
 provided to the Texas State Board of Pharmacy to support the
 electronic system for monitoring controlled substances, including
 provider identification information;
 (3)  monitor and develop recommendations regarding the
 implementation and enforcement of the electronic system for
 monitoring controlled substances;
 (4)  develop recommended procedures necessary for
 real-time point-of-service access for a practitioner authorized to
 prescribe or dispense controlled substances listed in Schedules II
 through V under Subchapter B, Chapter 481, Health and Safety Code,
 so that the practitioner may obtain:
 (A)  the prescription drug order history for a
 particular patient; or
 (B)  the practitioner's own dispensing or
 prescribing activity; and
 (5)  develop recommended procedures that should be
 followed by the Texas State Board of Pharmacy and the applicable
 licensing authority of this state, another state, or the United
 States when:
 (A)  the board shares information related to
 diversion of controlled substances with a licensing authority for
 the purpose of licensing enforcement; or
 (B)  a licensing authority shares information
 related to diversion of controlled substances with the board for
 the purpose of criminal enforcement.
 (e)  The executive board of the Texas State Board of Pharmacy
 shall report the recommendations developed under Subsection (d) of
 this section to the governor, lieutenant governor, speaker of the
 house of representatives, and appropriate committees of the senate
 and the house of representatives not later than July 1, 2012.
 (f)  This section expires and the advisory committee is
 abolished September 1, 2013.
 SECTION 17.  The executive board of the Texas State Board of
 Pharmacy or the executive board's designee shall adopt any rules
 necessary to administer and enforce Chapter 570, Occupations Code,
 as added by this Act, not later than June 1, 2012.
 SECTION 18.  (a) The Department of Public Safety, Texas
 Medical Board, Texas State Board of Pharmacy, State Board of Dental
 Examiners, and Texas Board of Nursing shall submit to the presiding
 officers of the Senate Committee on Health and Human Services and
 the House Committee on Public Health a report that details the
 number and type of actions relating to the prosecution of
 violations of Chapter 481, Health and Safety Code, as amended by
 this Act, or Chapter 570, Occupations Code, as added by this Act.
 (b)  Each agency shall submit its initial report under
 Subsection (a) of this section not later than November 1, 2011.
 Each agency shall submit an update of its initial report not later
 than May 1 and November 1 of each year.
 (c)  This section expires November 1, 2015.
 SECTION 19.  (a) The Texas State Board of Pharmacy and the
 public safety director of the Department of Public Safety shall
 enter into the memorandum of understanding required by Section
 481.003, Health and Safety Code, as amended by this Act, not later
 than January 1, 2012.
 (b)  The Texas State Board of Pharmacy shall adopt any rules
 required by Chapter 481, Health and Safety Code, as amended by this
 Act, not later than September 1, 2012.
 (c)  Not later than September 1, 2012, the Department of
 Public Safety shall transfer the records received under Sections
 481.074, 481.076, and 481.0761, Health and Safety Code, before the
 sections are repealed by this Act, to the Texas State Board of
 Pharmacy.
 (d)  A rule, form, policy, procedure, or decision adopted
 under Chapter 481, Health and Safety Code, as it existed before
 amendment by this Act, continues in effect as a rule, form, policy,
 procedure, or decision and remains in effect until amended or
 replaced.
 (e)  A reference in law or an administrative rule to the
 public safety director of the Department of Public Safety relating
 to rulemaking authority given and duties transferred to the Texas
 State Board of Pharmacy by this Act is a reference to the Texas
 State Board of Pharmacy.
 SECTION 20.  The change in law made by this Act applies only
 to an offense committed on or after the effective date of this Act.
 An offense committed before the effective date of this Act is
 governed by the law in effect when the offense was committed, and
 the former law is continued in effect for that purpose. For
 purposes of this section, an offense was committed before the
 effective date of this Act if any element of the offense was
 committed before that date.
 SECTION 21.  (a) Except as provided by Subsections (b) and
 (c) of this section, this Act takes effect September 1, 2011.
 (b)  Subchapter C, Chapter 570, Occupations Code, as added by
 this Act, takes effect September 1, 2012.
 (c)  Sections 2 through 14 of this Act take effect September
 1, 2012.