By: Bonnen H.B. No. 4990
A BILL TO BE ENTITLED
AN ACT
relating to the creation, management, and administration of the
Texas Pharmaceutical Initiative.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle D, Title 10, Government Code, is
amended by adding Chapter 2177 to read as follows:
CHAPTER 2177. TEXAS PHARMACEUTICAL INITIATIVE
Sec. 2177.001. DEFINITIONS. In this chapter:
(1) "Initiative" means the Texas Pharmaceutical
Initiative established in Sec. 2177.002.
(2) "Board" means the governing board established in
Sec. 2177.003.
Sec. 2177.002. TEXAS PHARMACEUTICAL INITIATIVE;
ESTABLISHMENT. The Texas Pharmaceutical Initiative is established
to provide cost effective prescription drug access for employees,
dependents, and retirees of public higher education systems and
institutions, Employees Retirement System of Texas members,
Teacher Retirement System of Texas members, persons confined by the
Texas Department of Criminal Justice or the Texas Juvenile Justice
Department, recipients of medical assistance, enrollees of the
child health plan program, and other public, non-profit, and
for-profit entities.
Sec. 2177.003. GOVERNING BOARD. (a) The initiative shall
be governed by a board that consists of:
(1) the commissioner of the Texas Health and Human
Services Commission, or their designee;
(2) the executive director of the Employees Retirement
System of Texas, or their designee;
(3) the executive director of the Teacher Retirement
System of Texas, or their designee;
(4) three members appointed by the governor;
(5) one member appointed by the governor from a list of
three names submitted by the lieutenant governor;
(6) one member appointed by the governor from a list of
three names submitted by the speaker of the house of
representatives; and
(6) the chancellor of the University of Texas System,
or the chancellor's designee, in an ex-officio capacity.
(b) A vacancy on the board shall be filled in the same manner
as the original appointment.
(c) The board is administratively attached to the Health and
Human Services Commission.
(d) The governor shall select the presiding officer of the
board.
Sec. 2177.004. GENERAL DUTIES. (a) The board established
under SECTION 2177.003 shall:
(1) develop and implement the initiative and related
programs established in this chapter;
(2) establish procedures and policies for the
administration of the board;
(3) establish procedures to document compliance by
board members and staff with applicable laws governing conflicts of
interest; and
(4) adopt all necessary rules to implement this
chapter.
(b) The board may:
(1) execute all contracts and other documents, adopt
all proceedings, and conduct all activities determined by the board
to be necessary to carry out the purposes of this chapter. The
board may authorize one or more members of the board to execute
contracts and other documents on behalf of the board; and
(2) establish and create any committees or other
entities the board may deem necessary to exercise the powers
provided in this act. The board may delegate to such committees or
other entities administrative duties and other powers as the board
may deem necessary;
(3) hire a chief executive officer and employ
necessary staff to provide administrative support;
(4) make grants to provide funds to public or private
persons to implement the Texas Pharmaceutical Initiative.
(c) the board is required to implement a provision of this
chapter only if the legislature appropriates money specifically for
that purpose. If the legislature does not appropriate money
specifically for that purpose, the board may, but is not required
to, implement a provision of this chapter.
Sec. 2177.005. TRANSPARENT PHARMACY BENEFIT MANAGER. (a)
The board shall establish and implement a statewide transparent
pharmacy benefit manager to provide cost-effective prescription
drugs to entities and organizations served by the Initiative.
(b) The pharmacy benefit manager shall provide pricing
transparency, pass-through of all rebates and fees, and fair and
equitable pricing to any pharmacy that chooses to participate in
the pharmacy benefit manager's pharmacy network.
(c) The pharmacy benefit manager shall contract with
appropriate entities to:
(1) provide evidence-based benefit design, prior
authorization, and new drug review; and
(2) partner with suppliers, pharmaceutical
manufacturers, and group purchasing organizations for competitive
drug acquisition.
(d) The pharmacy benefit manager may charge fees for
startup, enrollment, and ongoing management to support operational
costs, program development, and expansion.
Sec. 2177.006. CENTRAL SERVICE CENTER AND SATELLITE
DISTRIBUTION FACILITIES. (a) The board shall establish and
implement a central service center and associated network of
satellite distribution facilities to provide pharmacy and medical
supplies in support of Texas public higher education systems and
institutions, the Employees Retirement System of Texas, the Teacher
Retirement System of Texas, the Texas Department of Criminal
Justice, the Texas Juvenile Justice Department, and other public,
non-profit, and for-profit entities. The center shall:
(1) be constructed to withstand severe weather,
natural disasters, and power outages, and shall be capable of
supporting disaster preparedness and relief statewide; and
(2) include a mail order pharmacy and specialty
pharmacy.
(b) The center may assess a stock carrying charge,
transaction fees, or other fees to support distribution and other
operational costs, including overhead and margin.
(c) The mail order and specialty pharmacy may receive
payment for dispensing prescription drugs and may assess
dispensing, delivery, and handling fees.
Sec. 2177.007 PHARMACEUTICAL ADVANCED PREPARATION
FACILITY. (a) The board shall establish a pharmaceutical advanced
preparation facility to provide Food and Drug Administration
approved 503B compounding, manufacturing, CAR-T and other gene
therapies, precision medicine, and advanced labs for quality
control, preparation and compounding in support of innovative
therapeutics and drug research.
(b) The facility shall be operated by a 501 c(3) established
by the board.
(c) The facility may charge fees for drug preparation,
manufacturing, CAR-T, gene therapy, and 503B compounding to support
operational costs, including overhead and margin.
Sec. 2177.008 ADVANCED HEALTH CARE COST AND CLAIMS ANALYTIC
SERVICES. (a) The board shall contract to provide advanced health
care cost and claims analytic services to support the transparent
pharmacy benefit manager, mail order and specialty pharmacies,
central service center, and pharmaceutical advanced preparation
facility established in this chapter, and to support population
health and research.
Sec. 2177.009 GENERIC DRUG MANUFACTURING FACILITY. (a) The
board may enter into an agreement to establish a facility providing
for the manufacturing of generic drugs. In entering into an
agreement, the board shall prioritize savings and access to
affordable medications.
Sec. 2177.010 TEXAS PHARMACY INITIATIVE FUND. (a) The
Texas Pharmaceutical Initiative Fund is created as a trust fund
outside the treasury with the comptroller. The fund consists of
money from:
(1) gifts, grants, or donations to the executive
committee; and
(2) any other source appropriated or designated by the
legislature.
(b) The board may utilize the fund for the purpose of
carrying out this chapter.
(c) The board shall develop procedures for administration
and approval of expenditures through the fund.
Sec. 2177.011. GIFTS, GRANTS, AND DONATIONS. The board may
accept on behalf of the initiative gifts, grants, or donations from
any public or private source for the purpose of carrying out this
chapter.
Sec. 2177.012. ANNUAL REPORT. Not later than December 31 of
each year, the board shall submit to the Texas Legislature a written
report that outlines:
(1) the activities and objectives of the initiative;
(2) cost savings derived by state entities as a result
of participation in the initiative; and
(3) any legislative recommendations.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by SECTION 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2023.