Texas 2023 - 88th Regular

Texas House Bill HB4990 Compare Versions

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Version 2 (New)

Old	New	Differences
1	1	H.B. No. 4990
2	2
3	3
4	4	AN ACT
5	5	relating to the Texas Pharmaceutical Initiative and a governing
6	6	board and advisory council for the initiative.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Subtitle D, Title 10, Government Code, is
9	9	amended by adding Chapter 2177 to read as follows:
10	10	CHAPTER 2177. TEXAS PHARMACEUTICAL INITIATIVE
11	11	Sec. 2177.001. DEFINITIONS. In this chapter:
12	12	(1) "Advisory council" means the Texas Pharmaceutical
13	13	Initiative Advisory Council established under this chapter.
14	14	(2) "Board" means the governing board of the
15	15	initiative.
16	16	(3) "Commission" means the Health and Human Services
17	17	Commission.
18	18	(4) "Generic biological product" means a biological
19	19	product approved pursuant to an application under Section 351(k),
20	20	Public Health Service Act (42 U.S.C. Section 262(k)).
21	21	(5) "Generic drug" means a prescription drug approved
22	22	pursuant to an application under Section 505(j), Federal Food,
23	23	Drug, and Cosmetic Act (21 U.S.C. Section 355(j)).
24	24	(6) "Initiative" means the Texas Pharmaceutical
25	25	Initiative established under this chapter.
26	26	Sec. 2177.002. TEXAS PHARMACEUTICAL INITIATIVE. The Texas
27	27	Pharmaceutical Initiative is established to provide cost-effective
28	28	access to prescription drugs and other medical supplies for:
29	29	(1) employees, dependents, and retirees of public
30	30	higher education systems and institutions;
31	31	(2) Employees Retirement System of Texas members;
32	32	(3) Teacher Retirement System of Texas members;
33	33	(4) persons confined by the Texas Department of
34	34	Criminal Justice or the Texas Juvenile Justice Department; and
35	35	(5) individuals served by a program operated or
36	36	administered by the health and human services system, as that term
37	37	is defined by Section 531.001.
38	38	Sec. 2177.003. BOARD. (a) The initiative is governed by a
39	39	board composed of three members appointed by the governor.
40	40	(b) The governor shall designate the presiding officer of
41	41	the board.
42	42	(c) A board member serves without compensation but may be
43	43	reimbursed for travel and other actual and reasonable expenses
44	44	incurred in the performance of the member's duties on the board.
45	45	Sec. 2177.004. BOARD MEMBER QUALIFICATIONS. (a) A person
46	46	may not serve as a board member if the person:
47	47	(1) has held any other elective public office during
48	48	the preceding five years; or
49	49	(2) is an employee of an entity served by the
50	50	initiative.
51	51	(b) Not more than one-third of the members of the board
52	52	serving at any one time may derive more than 10 percent of their
53	53	annual income from the health care, insurance, or pharmaceutical
54	54	industry.
55	55	Sec. 2177.005. BOARD POWERS AND DUTIES. (a) The board may:
56	56	(1) develop and implement the initiative and any
57	57	programs established by this chapter;
58	58	(2) establish procedures and policies for the
59	59	administration of the initiative; and
60	60	(3) establish procedures to document compliance by
61	61	board members and personnel with applicable laws governing
62	62	conflicts of interest.
63	63	(b) To carry out the purposes of this chapter and implement
64	64	the initiative, the board may:
65	65	(1) hire and employ an executive director and
66	66	necessary personnel to provide administrative support;
67	67	(2) execute contracts and other instruments and
68	68	conduct all activities the board determines necessary for those
69	69	purposes;
70	70	(3) authorize one or more board members to execute
71	71	contracts and other instruments on behalf of the board; and
72	72	(4) establish a committee or other similar entity to
73	73	exercise powers delegated by the board and exercise any other
74	74	administrative duties or powers as the board considers necessary.
75	75	Sec. 2177.006. BUSINESS PLAN. Not later than October 1,
76	76	2024, the board shall develop and submit to the governor, the
77	77	legislature, and the Legislative Budget Board a business plan on:
78	78	(1) implementing the initiative, including the
79	79	initiative's organizational structure and related programs;
80	80	(2) establishing procedures and policies for the
81	81	administration of the initiative, including documenting the
82	82	process and resources required for the provision to individuals
83	83	described by Section 2177.002 of the following services:
84	84	(A) establishing or contracting for statewide
85	85	pharmacy benefit manager services;
86	86	(B) establishing policies and conditions to
87	87	operate or contract for the operation of a distribution network,
88	88	central service center, and associated network of satellite
89	89	distribution facilities to distribute prescription drugs and
90	90	related medical supplies; and
91	91	(C) providing advanced pharmaceutical
92	92	preparation and related services, including:
93	93	(i) manufacturing generic drugs and generic
94	94	biological products;
95	95	(ii) providing gene therapies and precision
96	96	medicine; and
97	97	(iii) providing advanced laboratories for
98	98	quality control, preparation, and compounding of drugs in support
99	99	of innovative therapeutics and drug research;
100	100	(3) establishing procedures to document compliance by
101	101	board members and personnel with applicable laws governing
102	102	conflicts of interest;
103	103	(4) establishing the conditions for state agencies
104	104	that facilitate health plans to participate in the initiative;
105	105	(5) identifying potential cost savings from
106	106	implementation of the initiative;
107	107	(6) identifying the funding and resources needed to
108	108	implement this chapter; and
109	109	(7) providing other board recommendations, with
110	110	supporting documentation, on continuation of the initiative.
111	111	Sec. 2177.007. ADMINISTRATIVE ATTACHMENT. (a) The board
112	112	is administratively attached to the commission.
113	113	(b) The commission shall provide administrative support
114	114	services to the board as necessary to carry out the purposes of this
115	115	chapter.
116	116	Sec. 2177.008. ADVISORY COUNCIL. (a) The Texas
117	117	Pharmaceutical Initiative Advisory Council is established to
118	118	advise the board in implementing this chapter and carrying out the
119	119	duties imposed on the board under this chapter.
120	120	(b) The advisory council is composed of:
121	121	(1) the executive commissioner of the commission or
122	122	the executive commissioner's designee;
123	123	(2) the executive director of the Employees Retirement
124	124	System of Texas or the executive director's designee;
125	125	(3) the executive director of the Teacher Retirement
126	126	System of Texas or the executive director's designee;
127	127	(4) the chancellor of The University of Texas System
128	128	or the chancellor's designee; and
129	129	(5) the chancellor of The Texas A&M University System
130	130	or the chancellor's designee.
131	131	Sec. 2177.009. CONFLICTS OF INTEREST. Except as otherwise
132	132	provided by this chapter, Chapter 572 applies to the initiative.
133	133	Sec. 2177.010. EXPIRATION OF CHAPTER. This chapter expires
134	134	September 1, 2025.
135	135	SECTION 2. This Act takes effect immediately if it receives
136	136	a vote of two-thirds of all the members elected to each house, as
137	137	provided by Section 39, Article III, Texas Constitution. If this
138	138	Act does not receive the vote necessary for immediate effect, this
139	139	Act takes effect September 1, 2023.
140	140	______________________________ ______________________________
141	141	President of the Senate Speaker of the House
142	142	I certify that H.B. No. 4990 was passed by the House on May 2,
143	143	2023, by the following vote: Yeas 128, Nays 12, 1 present, not
144	144	voting; and that the House concurred in Senate amendments to H.B.
145	145	No. 4990 on May 26, 2023, by the following vote: Yeas 113, Nays 26,
146	146	1 present, not voting.
147	147	______________________________
148	148	Chief Clerk of the House
149	149	I certify that H.B. No. 4990 was passed by the Senate, with
150	150	amendments, on May 24, 2023, by the following vote: Yeas 26, Nays
151	151	4.
152	152	______________________________
153	153	Secretary of the Senate
154	154	APPROVED: __________________
155	155	Date
156	156	__________________
157	157	Governor