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A BILL TO BE ENTITLED
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AN ACT
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relating to the Texas Pharmaceutical Initiative; authorizing fees. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle D, Title 10, Government Code, is |
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amended by adding Chapter 2177 to read as follows: |
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CHAPTER 2177. TEXAS PHARMACEUTICAL INITIATIVE |
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Sec. 2177.001. DEFINITIONS. In this chapter: |
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(1) "Board" means the governing board of the |
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initiative. |
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(2) "Fund" means the Texas Pharmaceutical Initiative |
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fund. |
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(3) "Generic biological product" means a biological |
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product approved pursuant to an application under Section 351(k), |
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Public Health Service Act (42 U.S.C. Section 262(k)). |
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(4) "Generic drug" means a prescription drug approved |
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pursuant to an application under Section 505(j), Federal Food, |
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Drug, and Cosmetic Act (21 U.S.C. Section 355(j)). |
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(5) "Initiative" means the Texas Pharmaceutical |
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Initiative established under this chapter. |
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Sec. 2177.002. TEXAS PHARMACEUTICAL INITIATIVE. (a) The |
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Texas Pharmaceutical Initiative is established to provide |
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cost-effective access to prescription drugs and other medical |
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supplies for: |
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(1) employees, dependents, and retirees of public |
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higher education systems and institutions; |
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(2) Employees Retirement System of Texas members; |
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(3) Teacher Retirement System of Texas members; |
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(4) persons confined by the Texas Department of |
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Criminal Justice or the Texas Juvenile Justice Department; |
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(5) recipients of medical assistance under Chapter 32, |
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Human Resources Code; and |
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(6) enrollees of the child health plan program under |
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Chapter 62, Health and Safety Code. |
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(b) A state entity that provides health benefit plan |
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coverage to individuals described by Subsection (a) as the entity |
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determines appropriate may elect to provide access to prescription |
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drugs and other medical supplies under the initiative. |
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Sec. 2177.003. BOARD. (a) The initiative is governed by a |
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board composed of: |
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(1) the executive commissioner of the Health and Human |
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Services Commission or the executive commissioner's designee; |
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(2) the executive director of the Employees Retirement |
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System of Texas or the executive director's designee; |
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(3) the executive director of the Teacher Retirement |
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System of Texas or the executive director's designee; |
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(4) three members appointed by the governor; |
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(5) one member appointed by the governor from a list of |
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three names submitted by the lieutenant governor; |
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(6) one member appointed by the governor from a list of |
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three names submitted by the speaker of the house of |
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representatives; and |
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(7) the chancellor of The University of Texas System, |
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or the chancellor's designee, who serves in an ex-officio capacity. |
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(b) A vacancy on the board shall be filled in the same manner |
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as the original appointment. |
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(c) The appointed board members serve staggered six-year |
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terms. |
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(d) The governor shall designate the presiding officer of |
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the board. |
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(e) A board member serves without compensation but may be |
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reimbursed for travel and other actual and reasonable expenses |
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incurred in the performance of the member's duties on the board. |
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(f) The board is administratively attached to the Health and |
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Human Services Commission. |
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Sec. 2177.004. DUTIES OF BOARD. (a) The board shall: |
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(1) develop and implement the initiative and related |
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programs established by this chapter; |
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(2) establish procedures and policies for the |
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administration of the initiative; |
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(3) establish procedures to document compliance by |
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board members and personnel with applicable laws governing |
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conflicts of interest; |
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(4) ensure that a program or entity created under this |
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chapter meets any applicable licensing or accreditation |
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requirements under state or federal law; and |
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(5) recommend rules necessary to implement this |
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chapter for adoption by the executive commissioner of the Health |
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and Human Services Commission. |
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(b) To carry out the purposes of this chapter the board may: |
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(1) execute contracts and other instruments and |
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conduct all activities the board determines necessary for those |
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purposes; |
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(2) authorize one or more board members to execute |
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contracts and other instruments on behalf of the board; |
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(3) establish a committee or other similar entity to |
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exercise powers delegated by the board and exercise any other |
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administrative duties or powers as the board considers necessary; |
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(4) employ an executive director and necessary |
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personnel to provide administrative support; and |
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(5) award grants to public or private persons to |
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implement the initiative. |
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(c) The board may refrain from establishing a program or |
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entity under this chapter if the board determines that |
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establishment is not feasible with current resources or considering |
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other state-funded programs. |
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(d) A contract or agreement executed under this chapter must |
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comply with Chapter 2254, if applicable. |
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Sec. 2177.005. PHARMACY BENEFIT MANAGER. (a) The board |
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shall contract for a statewide pharmacy benefit manager, as |
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provided by Subchapter H, Chapter 2158, to provide cost-effective |
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prescription drugs through the establishment of a pharmacy network |
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to state entities served by the initiative. |
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(b) The pharmacy benefit manager shall provide pricing |
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transparency, a pass-through of all rebates and fees, and fair and |
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equitable pricing to a pharmacy that participates in the pharmacy |
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benefit manager's pharmacy network. |
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(c) The pharmacy benefit manager shall contract with |
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appropriate persons to: |
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(1) provide an evidence-based benefit design, a prior |
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authorization process, and a new drug review process; and |
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(2) partner with suppliers, pharmaceutical |
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manufacturers, and group purchasing organizations for competitive |
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acquisition of prescription drugs and medical supplies. |
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Sec. 2177.006. DISTRIBUTION OF PRESCRIPTION DRUGS AND |
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MEDICAL SUPPLIES. (a) The board shall establish and implement a |
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central service center and an associated network of satellite |
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distribution facilities to provide prescription drugs and medical |
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supplies to individuals described by Section 2177.002 for state |
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entities that elect to participate in the initiative. The center |
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must: |
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(1) be constructed to withstand extreme weather |
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conditions, natural disasters, and power outages; |
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(2) be capable of providing disaster preparedness and |
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response resources statewide; and |
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(3) include a mail order pharmacy and specialty |
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pharmacy. |
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(b) The central service center may assess an inventory |
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storage charge, transaction fees, or other fees on persons |
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obtaining prescription drugs and medical supplies from the center |
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to support the center's distribution and other operational costs, |
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including overhead and margin. |
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(c) The mail order and specialty pharmacy established in the |
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central service center may assess delivery and handling fees on |
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persons receiving prescription drugs from the pharmacy. |
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Sec. 2177.007. PHARMACEUTICAL ADVANCED PREPARATION |
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FACILITY. (a) The board shall establish a pharmaceutical advanced |
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preparation facility to serve as an outsourcing facility in |
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compliance with Section 503B, Federal Food, Drug, and Cosmetic Act |
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(21 U.S.C. Section 353b), to: |
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(1) manufacture and provide compounded drugs; |
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(2) provide chimeric antigen receptor T-cell |
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treatment and other gene therapies, including precision medicine; |
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and |
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(3) provide advanced laboratories for quality |
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control, preparation, and compounding of drugs in support of |
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innovative therapeutics and drug research. |
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(b) The pharmaceutical advanced preparation facility shall |
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be operated by an organization established by the board that is |
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exempt from federal income taxation under Section 501(a), Internal |
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Revenue Code of 1986, by being listed as an exempt entity under |
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Section 501(c)(3) of that code. |
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(c) The pharmaceutical advanced preparation facility may |
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charge fees to persons to whom the facility provides drugs, |
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treatment, supplies, or other services to support the operational |
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costs of the facility, including overhead and margin. |
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Sec. 2177.008. ADVANCED HEALTH CARE COST AND CLAIMS |
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ANALYTIC SERVICES. (a) The board shall contract with a person to |
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provide advanced health care claims analytics software to support |
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the programs and entities created by this chapter and to support |
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population health research. |
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(b) The board shall develop criteria for the evaluation of |
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applications or proposals submitted by a person seeking to contract |
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with the board under this section. |
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Sec. 2177.009. GENERIC BIOLOGICAL PRODUCT AND GENERIC DRUG |
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MANUFACTURING FACILITY. (a) The board may enter into an agreement |
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with a person to establish a facility that manufactures generic |
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biological products and generic drugs in compliance with any |
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requirements of the federal Food and Drug Administration. In |
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entering into the agreement, the board shall prioritize savings and |
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access to affordable medications. |
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(b) The board shall develop criteria for the evaluation of |
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applications or proposals submitted by a person seeking to contract |
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with the board under this section. |
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Sec. 2177.010. CONFIDENTIALITY OF CERTAIN INFORMATION. Any |
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information received by the board, a program or entity created by |
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this chapter, a state entity participating in the initiative, or a |
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contractor or agent of the board that if directly or indirectly |
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disclosed is likely to compromise the financial, competitive, or |
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proprietary nature of the information, is confidential and not |
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subject to disclosure under Chapter 552. |
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Sec. 2177.011. TEXAS PHARMACEUTICAL INITIATIVE FUND. (a) |
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The Texas Pharmaceutical Initiative fund is created as a trust fund |
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to be held by the comptroller outside the state treasury. |
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(b) The fund consists of: |
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(1) money from gifts, grants, and donations to the |
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fund; |
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(2) any additional legislative appropriations of |
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money for the purposes of the fund; and |
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(3) interest, dividends, and other income of the fund. |
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(c) The board may only use money in the fund to carry out the |
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purposes of this chapter. |
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(d) The board shall develop procedures for administration |
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and approval of expenditures of the fund. |
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Sec. 2177.012. FUNDING. The board may accept gifts, |
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grants, and donations from any public or private source for the |
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purpose of carrying out this chapter. |
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Sec. 2177.013. ANNUAL REPORT. Not later than December 31 of |
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each year, the board shall submit to the legislature a written |
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report on: |
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(1) the activities and objectives of the initiative; |
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(2) any cost savings for state entities that |
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participate in the initiative; and |
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(3) any recommendations for legislative or other |
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action. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2023. |