Texas 2019 - 86th Regular

Texas Senate Bill SB1631 Compare Versions

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1	1	By: Creighton S.B. No. 1631
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to financial investor disclosure and surety bond
7	7	requirements for certain pharmacies; providing an administrative
8	8	penalty.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 560.052(b), Occupations Code, is amended
11	11	to read as follows:
12	12	(b) To qualify for a pharmacy license, an applicant must
13	13	submit to the board:
14	14	(1) a license fee set by the board, except as provided
15	15	by Subsection (d); [and]
16	16	(2) a completed application that:
17	17	(A) is on a form prescribed by the board;
18	18	(B) is given under oath;
19	19	(C) includes proof that:
20	20	(i) a pharmacy license held by the
21	21	applicant in this state or another state, if applicable, has not
22	22	been restricted, suspended, revoked, or surrendered for any reason;
23	23	and
24	24	(ii) no owner of the pharmacy for which the
25	25	application is made has held a pharmacist license in this state or
26	26	another state, if applicable, that has been restricted, suspended,
27	27	revoked, or surrendered for any reason; and
28	28	(D) includes a statement of:
29	29	(i) the ownership;
30	30	(ii) the location of the pharmacy;
31	31	(iii) the license number of each pharmacist
32	32	who is employed by the pharmacy, if the pharmacy is located in this
33	33	state, or who is licensed to practice pharmacy in this state, if the
34	34	pharmacy is located in another state;
35	35	(iv) the pharmacist license number of the
36	36	pharmacist-in-charge; and
37	37	(v) any other information the board
38	38	determines necessary; and
39	39	(3) if the applicant is not a pharmacy operated by a
40	40	publicly traded company:
41	41	(A) a statement disclosing:
42	42	(i) the pharmacy's financial investors as
43	43	provided by Section 560.0521; and
44	44	(ii) the criminal history record
45	45	information of each individual owner and financial investor of the
46	46	pharmacy, or of each individual managing officer of the pharmacy if
47	47	the pharmacy is a partnership or closely held corporation,
48	48	accompanied by a complete and legible set of fingerprints of each
49	49	individual owner, financial investor, and managing officer, as
50	50	applicable; and
51	51	(B) a surety bond that meets the requirements of
52	52	Section 560.0522.
53	53	SECTION 2. Subchapter B, Chapter 560, Occupations Code, is
54	54	amended by adding Sections 560.0521 and 560.0522 to read as
55	55	follows:
56	56	Sec. 560.0521. FINANCIAL INVESTOR DISCLOSURE STATEMENT.
57	57	(a) A disclosure statement of financial investors included with an
58	58	application under Section 560.052(b)(3) must include:
59	59	(1) the name of each person who is financially
60	60	invested in the pharmacy;
61	61	(2) the total amount of the financial investment made
62	62	by each person; and
63	63	(3) the source of the financial investment as required
64	64	by Subsection (b).
65	65	(b) The disclosure of the source of a financial investment
66	66	required by Subsection (a)(3) must include:
67	67	(1) if the source is money from a checking or savings
68	68	account at a financial institution:
69	69	(A) the name and address of the financial
70	70	institution; and
71	71	(B) the account number from which the financial
72	72	investment was obtained or in which the financial investment is
73	73	maintained;
74	74	(2) if the source is from the sale of property:
75	75	(A) the type of property sold; and
76	76	(B) if the property sold is real property:
77	77	(i) the property's address;
78	78	(ii) the buyer's name and address;
79	79	(iii) the date of the sale; and
80	80	(iv) the amount of the net proceeds from the
81	81	sale of the property;
82	82	(3) if the source is from a loan:
83	83	(A) the date the loan was made;
84	84	(B) the amount and terms of the loan;
85	85	(C) the collateral securing the loan, if any;
86	86	(D) the name and address of the lender; and
87	87	(E) a copy of the loan agreement;
88	88	(4) if the source is from an inheritance or gift:
89	89	(A) the amount of the inheritance or gift; and
90	90	(B) the donor's name, address, and relation to
91	91	the investor, if any; and
92	92	(5) a description of any other source not specified by
93	93	this subsection.
94	94	Sec. 560.0522. SURETY BOND. (a) A person required to
95	95	submit a surety bond to the board under Section 560.052(b)(3) or
96	96	562.1015 must obtain the bond from a surety company authorized by
97	97	the board and keep the bond in force until the later of the date:
98	98	(1) the license issued to the person under this
99	99	chapter expires; or
100	100	(2) the surety company exercises its right of
101	101	termination.
102	102	(b) The board may use a pharmacy's surety bond to secure the
103	103	payment of a fine, fee, or penalty imposed on the pharmacy or costs
104	104	incurred by the board in conducting an investigation of the
105	105	pharmacy under this subtitle if the pharmacy fails to pay the fine,
106	106	fee, penalty, or cost not later than the 30th day after the date an
107	107	order requiring payment becomes final.
108	108	(c) The surety bond must:
109	109	(1) identify on the face of the bond the parties to the
110	110	bond as follows:
111	111	(A) the pharmacy as principal;
112	112	(B) the board as obligee; and
113	113	(C) the surety company, and its heirs, executors,
114	114	administrators, successors, and assignees, jointly and severally,
115	115	as surety;
116	116	(2) state an effective date and expiration date;
117	117	(3) be in an amount not to exceed $25,000; and
118	118	(4) provide that:
119	119	(A) the surety is liable on the obligations of
120	120	the surety bond; and
121	121	(B) after the bond's expiration, unless the
122	122	pharmacy provides a new, updated, or renewed surety bond that meets
123	123	the requirements of this subsection, the surety remains liable for
124	124	any fine or penalty imposed on the pharmacy during the term of the
125	125	bond until the later of the second anniversary of the date:
126	126	(i) the bond expires; or
127	127	(ii) the pharmacy's license is terminated
128	128	by the board.
129	129	(d) A surety's liability to the board is not affected or
130	130	terminated by:
131	131	(1) an action taken by the pharmacy or surety to
132	132	terminate the bond or to reduce or limit the scope or term of the
133	133	bond; or
134	134	(2) the pharmacy:
135	135	(A) ceasing operations;
136	136	(B) selling or transferring any assets or
137	137	ownership interests;
138	138	(C) filing for bankruptcy; or
139	139	(D) failing to pay the surety.
140	140	(e) A surety's liability is terminated only if:
141	141	(1) the surety provides to the board at least 30 days'
142	142	written notice of the surety's intent to terminate the surety bond;
143	143	(2) the pharmacy provides the board with a new surety
144	144	bond that meets the requirements of this section; and
145	145	(3) the surety guarantees that on receipt of a written
146	146	request for payment by the board, the surety will reimburse the
147	147	board for the amount stated in the request that does not exceed the
148	148	amount of the bond.
149	149	SECTION 3. Subchapter C, Chapter 562, Occupations Code, is
150	150	amended by adding Section 562.1015 to read as follows:
151	151	Sec. 562.1015. SURETY BOND REQUIRED FOR CHANGE OF
152	152	OWNERSHIP. A pharmacy that is not operated by a publicly traded
153	153	company must submit to the board a surety bond that meets the
154	154	requirements of Section 560.0522 before the date of a change of
155	155	ownership of the pharmacy.
156	156	SECTION 4. Section 566.001, Occupations Code, is amended to
157	157	read as follows:
158	158	Sec. 566.001. IMPOSITION OF PENALTY. The board may impose
159	159	an administrative penalty on:
160	160	(1) a person licensed or regulated under this subtitle
161	161	who violates this subtitle or a rule or order adopted under this
162	162	subtitle; and
163	163	(2) an applicant who fails to disclose criminal
164	164	history record information in the manner required by Section
165	165	560.052(b).
166	166	SECTION 5. The changes in law made by this Act apply only to
167	167	an application for a pharmacy license that is submitted or a change
168	168	of ownership by a pharmacy that occurs on or after the effective
169	169	date of this Act. An application for a pharmacy license that was
170	170	submitted or a change of ownership by a pharmacy that occurred
171	171	before the effective date of this Act is governed by the law in
172	172	effect on the date the application was submitted or the change of
173	173	ownership occurred, and the former law is continued in effect for
174	174	that purpose.
175	175	SECTION 6. This Act takes effect September 1, 2019.