1-1  By:  Armbrister                                        S.B. No. 561
    1-2        (In the Senate - Filed March 2, 1993; March 3, 1993, read
    1-3  first time and referred to Committee on Health and Human Services;
    1-4  April 6, 1993, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 9, Nays 0; April 6, 1993,
    1-6  sent to printer.)
    1-7                            COMMITTEE VOTE
    1-8                          Yea     Nay      PNV      Absent 
    1-9        Zaffirini          x                               
   1-10        Ellis              x                               
   1-11        Madla              x                               
   1-12        Moncrief           x                               
   1-13        Nelson             x                               
   1-14        Patterson          x                               
   1-15        Shelley            x                               
   1-16        Truan              x                               
   1-17        Wentworth          x                               
   1-18  COMMITTEE SUBSTITUTE FOR S.B. No. 561                    By:  Truan
   1-19                         A BILL TO BE ENTITLED
   1-20                                AN ACT
   1-21  relating to licensing exemptions for wholesale distribution of
   1-22  prescription drugs.
   1-23        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-24        SECTION 1.  Subsection (a), Section 431.2021, Health and
   1-25  Safety Code, is amended to read as follows:
   1-26        (a)  A person who engages in wholesale distribution of
   1-27  prescription drugs in this state for use in humans is exempt from
   1-28  this subchapter if the person is exempt under:
   1-29              (1)  the Prescription Drug Marketing Act of 1987, as
   1-30  amended (21 U.S.C. Section 353(c)(3)(B));
   1-31              (2)  the regulations adopted by the secretary to
   1-32  administer and enforce that Act; or
   1-33              (3)  the interpretations of that Act set out in the
   1-34  compliance policy manual of the United States Food and Drug
   1-35  Administration <Persons who engage only in the following types of
   1-36  wholesale drug distribution are exempt from the licensing
   1-37  requirements of this subchapter:>
   1-38              <(1)  intracompany sales;>
   1-39              <(2)  the purchase or acquisition by a hospital or
   1-40  other health care entity that is a member of a group purchasing
   1-41  organization of a drug for its own use from the group purchasing
   1-42  organization or from other hospitals or health care entities that
   1-43  are members of such organizations;>
   1-44              <(3)  the sale, purchase, or trade of a drug or an
   1-45  offer to sell, purchase, or trade a drug by a charitable
   1-46  organization described in Section 501(c)(3) of the Internal Revenue
   1-47  Code of 1986 to a nonprofit affiliate of the organization to the
   1-48  extent otherwise permitted by law;>
   1-49              <(4)  the sale, purchase, or trade of a drug or an
   1-50  offer to sell, purchase, or trade a drug among hospitals or other
   1-51  health care entities that are under common control; for the purpose
   1-52  of this section, "common control" means the power to direct or
   1-53  cause the direction of the management and policies of a person or
   1-54  an organization, whether by ownership of stock, voting rights,
   1-55  contract, or otherwise;>
   1-56              <(5)  the sale, purchase, or trade of a drug or an
   1-57  offer to sell, purchase, or trade a drug for emergency medical
   1-58  reasons; for purposes of this section, "emergency medical reasons"
   1-59  includes transfers of prescription drugs by a retail pharmacy to
   1-60  another retail pharmacy to alleviate a temporary shortage;>
   1-61              <(6)  the sale, purchase, or trade of a drug, an offer
   1-62  to sell, purchase, or trade a drug, or the dispensing of a drug
   1-63  pursuant to a prescription;>
   1-64              <(7)  the distribution of drug samples by
   1-65  manufacturers' representatives or distributors' representatives; or>
   1-66              <(8)  the sale, purchase, or trade of blood and blood
   1-67  components intended for transfusion>.
   1-68        SECTION 2.  The importance of this legislation and the
    2-1  crowded condition of the calendars in both houses create an
    2-2  emergency and an imperative public necessity that the
    2-3  constitutional rule requiring bills to be read on three several
    2-4  days in each house be suspended, and this rule is hereby suspended,
    2-5  and that this Act take effect and be in force from and after its
    2-6  passage, and it is so enacted.
    2-7                               * * * * *
    2-8                                                         Austin,
    2-9  Texas
   2-10                                                         April 6, 1993
   2-11  Hon. Bob Bullock
   2-12  President of the Senate
   2-13  Sir:
   2-14  We, your Committee on Health and Human Services to which was
   2-15  referred S.B. No. 561, have had the same under consideration, and I
   2-16  am instructed to report it back to the Senate with the
   2-17  recommendation that it do not pass, but that the Committee
   2-18  Substitute adopted in lieu thereof do pass and be printed.
   2-19                                                         Zaffirini,
   2-20  Chair
   2-21                               * * * * *
   2-22                               WITNESSES
   2-23                                                  FOR   AGAINST  ON
   2-24  ___________________________________________________________________
   2-25  Name:  Dennis E. Baker                                         x
   2-26  Representing:  Tx Dept. of Health
   2-27  City:  Austin
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   2-29  Name:  Chuck Courtney                            x
   2-30  Representing:  Tx Retailers Assn
   2-31  City:  Austin
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   2-33  Name:  Richard Beck                              x
   2-34  Representing:  Tx Pharmaceutical Assn
   2-35  City:  Austin
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