Texas 2023 - 88th Regular

Texas Senate Bill SB2402 Compare Versions

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1	1	By: Kolkhorst S.B. No. 2402
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the creation, management, and administration of the
7	7	Texas Pharmaceutical Initiative.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Subtitle D, Title 10, Government Code, is
10	10	amended by adding Chapter 2177 to read as follows:
11	11	CHAPTER 2177. TEXAS PHARMACEUTICAL INITIATIVE
12	12	Sec. 2177.001. DEFINITIONS. In this chapter:
13	13	(1) "Initiative" means the Texas Pharmaceutical
14	14	Initiative established in Sec. 2177.002.
15	15	(2) "Board" means the governing board established in
16	16	Sec. 2177.003.
17	17	Sec. 2177.002. TEXAS PHARMACEUTICAL INITIATIVE;
18	18	ESTABLISHMENT. The Texas Pharmaceutical Initiative is established
19	19	to provide cost effective prescription drug access for employees,
20	20	dependents, and retirees of public higher education systems and
21	21	institutions, Employees Retirement System of Texas members,
22	22	Teacher Retirement System of Texas members, persons confined by the
23	23	Texas Department of Criminal Justice or the Texas Juvenile Justice
24	24	Department, recipients of medical assistance, enrollees of the
25	25	child health plan program, and other public, non-profit, and
26	26	for-profit entities.
27	27	Sec. 2177.003. GOVERNING BOARD.(a) The initiative shall
28	28	be governed by a board that consists of:
29	29	(1) the commissioner of the Texas Health and Human
30	30	Services Commission, or their designee;
31	31	(2) the executive director of the Employees Retirement
32	32	System of Texas, or their designee;
33	33	(3) the executive director of the Teacher Retirement
34	34	System of Texas, or their designee;
35	35	(4) three members appointed by the governor;
36	36	(5) one member appointed by the governor from a list of
37	37	three names submitted by the lieutenant governor;
38	38	(6) one member appointed by the governor from a list of
39	39	three names submitted by the speaker of the house of
40	40	representatives; and
41	41	(6) the chancellor of the University of Texas System,
42	42	or the chancellor's designee, in an ex-officio capacity.
43	43	(b) A vacancy on the board shall be filled in the same manner
44	44	as the original appointment.
45	45	(c) The board is administratively attached to the Health and
46	46	Human Services Commission.
47	47	(d) The governor shall select the presiding officer of the
48	48	board.
49	49	Sec. 2177.004. GENERAL DUTIES. (a) The board established
50	50	under SECTION 2177.003 shall:
51	51	(1) develop and implement the initiative and related
52	52	programs established in this chapter;
53	53	(2) establish procedures and policies for the
54	54	administration of the board;
55	55	(3) establish procedures to document compliance by
56	56	board members and staff with applicable laws governing conflicts of
57	57	interest; and
58	58	(4) adopt all necessary rules to implement this
59	59	chapter.
60	60	(b) The board may:
61	61	(1) execute all contracts and other documents, adopt
62	62	all proceedings, and conduct all activities determined by the board
63	63	to be necessary to carry out the purposes of this chapter. The
64	64	board may authorize one or more members of the board to execute
65	65	contracts and other documents on behalf of the board; and
66	66	(2) establish and create any committees or other
67	67	entities the board may deem necessary to exercise the powers
68	68	provided in this act. The board may delegate to such committees or
69	69	other entities administrative duties and other powers as the board
70	70	may deem necessary;
71	71	(3) hire a chief executive officer and employ
72	72	necessary staff to provide administrative support;
73	73	(4) make grants to provide funds to public or private
74	74	persons to implement the Texas Pharmaceutical Initiative.
75	75	(c) the board is required to implement a provision of this
76	76	chapter only if the legislature appropriates money specifically for
77	77	that purpose. If the legislature does not appropriate money
78	78	specifically for that purpose, the board may, but is not required
79	79	to, implement a provision of this chapter.
80	80	Sec. 2177.005. TRANSPARENT PHARMACY BENEFIT MANAGER.
81	81	(a) The board shall establish and implement a statewide
82	82	transparent pharmacy benefit manager to provide cost-effective
83	83	prescription drugs to entities and organizations served by the
84	84	Initiative.
85	85	(b) The pharmacy benefit manager shall provide pricing
86	86	transparency, pass-through of all rebates and fees, and fair and
87	87	equitable pricing to any pharmacy that chooses to participate in
88	88	the pharmacy benefit manager's pharmacy network.
89	89	(c) The pharmacy benefit manager shall contract with
90	90	appropriate entities to:
91	91	(1) provide evidence-based benefit design, prior
92	92	authorization, and new drug review; and
93	93	(2) partner with suppliers, pharmaceutical
94	94	manufacturers, and group purchasing organizations for competitive
95	95	drug acquisition.
96	96	(d) The pharmacy benefit manager may charge fees for
97	97	startup, enrollment, and ongoing management to support operational
98	98	costs, program development, and expansion.
99	99	Sec. 2177.006. CENTRAL SERVICE CENTER AND SATELLITE
100	100	DISTRIBUTION FACILITIES. (a) The board shall establish and
101	101	implement a central service center and associated network of
102	102	satellite distribution facilities to provide pharmacy and medical
103	103	supplies in support of Texas public higher education systems and
104	104	institutions, the Employees Retirement System of Texas, the Teacher
105	105	Retirement System of Texas, the Texas Department of Criminal
106	106	Justice, the Texas Juvenile Justice Department, and other public,
107	107	non-profit, and for-profit entities. The center shall:
108	108	(1) be constructed to withstand severe weather,
109	109	natural disasters, and power outages, and shall be capable of
110	110	supporting disaster preparedness and relief statewide; and
111	111	(2) include a mail order pharmacy and specialty
112	112	pharmacy.
113	113	(b) The center may assess a stock carrying charge,
114	114	transaction fees, or other fees to support distribution and other
115	115	operational costs, including overhead and margin.
116	116	(c) The mail order and specialty pharmacy may receive
117	117	payment for dispensing prescription drugs and may assess
118	118	dispensing, delivery, and handling fees.
119	119	Sec. 2177.007 PHARMACEUTICAL ADVANCED PREPARATION
120	120	FACILITY. (a) The board shall establish a pharmaceutical advanced
121	121	preparation facility to provide Food and Drug Administration
122	122	approved 503B compounding, manufacturing, CAR-T and other gene
123	123	therapies, precision medicine, and advanced labs for quality
124	124	control, preparation and compounding in support of innovative
125	125	therapeutics and drug research.
126	126	(b) The facility shall be operated by a 501 c(3) established
127	127	by the board.
128	128	(c) The facility may charge fees for drug preparation,
129	129	manufacturing, CAR-T, gene therapy, and 503B compounding to support
130	130	operational costs, including overhead and margin.
131	131	Sec. 2177.008 ADVANCED HEALTH CARE COST AND CLAIMS ANALYTIC
132	132	SERVICES. (a) The board shall contract to provide advanced health
133	133	care cost and claims analytic services to support the transparent
134	134	pharmacy benefit manager, mail order and specialty pharmacies,
135	135	central service center, and pharmaceutical advanced preparation
136	136	facility established in this chapter, and to support population
137	137	health and research.
138	138	Sec. 2177.009 GENERIC DRUG MANUFACTURING FACILITY.
139	139	(a) The board may enter into an agreement to establish a facility
140	140	providing for the manufacturing of generic drugs. In entering into
141	141	an agreement, the board shall prioritize savings and access to
142	142	affordable medications.
143	143	Sec. 2177.010 TEXAS PHARMACY INITIATIVE FUND. (a) The
144	144	Texas Pharmaceutical Initiative Fund is created as a trust fund
145	145	outside the treasury with the comptroller. The fund consists of
146	146	money from:
147	147	(1) gifts, grants, or donations to the executive
148	148	committee; and
149	149	(2) any other source appropriated or designated by the
150	150	legislature.
151	151	(b) The board may utilize the fund for the purpose of
152	152	carrying out this chapter.
153	153	(c) The board shall develop procedures for administration
154	154	and approval of expenditures through the fund.
155	155	Sec. 2177.011. GIFTS, GRANTS, AND DONATIONS. The board may
156	156	accept on behalf of the initiative gifts, grants, or donations from
157	157	any public or private source for the purpose of carrying out this
158	158	chapter.
159	159	Sec. 2177.012. ANNUAL REPORT. Not later than December 31 of
160	160	each year, the board shall submit to the Texas Legislature a written
161	161	report that outlines:
162	162	(1) the activities and objectives of the initiative;
163	163	(2) cost savings derived by state entities as a result
164	164	of participation in the initiative; and
165	165	(3) any legislative recommendations.
166	166	SECTION 2. This Act takes effect immediately if it receives
167	167	a vote of two-thirds of all the members elected to each house, as
168	168	provided by SECTION 39, Article III, Texas Constitution. If this
169	169	Act does not receive the vote necessary for immediate effect, this
170	170	Act takes effect September 1, 2023.