1-1  By:  Carriker                                          S.B. No. 621
    1-2        (In the Senate - Filed March 4, 1993; March 8, 1993, read
    1-3  first time and referred to Committee on Health and Human Services;
    1-4  April 26, 1993, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 6, Nays 0; April 26, 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. 621                    By:  Truan
   1-19                         A BILL TO BE ENTITLED
   1-20                                AN ACT
   1-21  relating to the continuation and functions of the Texas State Board
   1-22  of Pharmacy and to the regulation of the practice of pharmacy;
   1-23  providing penalties.
   1-24        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-25        SECTION 1.  Section 3, Texas Pharmacy Act (Article 4542a-1,
   1-26  Vernon's Texas Civil Statutes), is amended to read as follows:
   1-27        Sec. 3.  Sunset provision.  The Texas State Board of Pharmacy
   1-28  is subject to Chapter 325, Government Code (Texas Sunset Act).
   1-29  Unless continued in existence as provided by that chapter, the
   1-30  board is abolished and this Act expires September 1, 2005 <1993>.
   1-31        SECTION 2.  Section 7, Texas Pharmacy Act (Article 4542a-1,
   1-32  Vernon's Texas Civil Statutes), is amended to read as follows:
   1-33        Sec. 7.  Membership.  (a)  The board consists of nine
   1-34  members, six <seven> of whom must be licensed pharmacists and three
   1-35  <two> of whom must be representatives of the general public.  There
   1-36  shall be representation on the board for licensed pharmacists who
   1-37  are primarily employed in Class A and Class C pharmacies.
   1-38        (b)  A person <who is required to register as a lobbyist
   1-39  under Chapter 305, Government Code, by virtue of his activities as
   1-40  a member of a trade or professional association in the regulated
   1-41  profession> may not act as general counsel or serve as a member of
   1-42  the board if the person is required to register as a lobbyist under
   1-43  Chapter 305, Government Code, and its subsequent amendments,
   1-44  because of the person's activities for compensation on behalf of a
   1-45  profession related to the operation of the board.
   1-46        SECTION 3.  Section 8, Texas Pharmacy Act (Article 4542a-1,
   1-47  Vernon's Texas Civil Statutes), is amended to read as follows:
   1-48        Sec. 8.  Qualifications.  (a)  A licensed pharmacist member
   1-49  of the board may not be a salaried faculty member at a college of
   1-50  pharmacy and must at the time of his appointment:
   1-51              (1)  be a resident of this state;
   1-52              (2)  be licensed for the five years immediately
   1-53  preceding appointment and be in good standing to engage in the
   1-54  practice of pharmacy in this state; and
   1-55              (3)  be engaged in the practice of pharmacy in this
   1-56  state<; and>
   1-57              <(4)  not be an officer, employee, or paid consultant
   1-58  of a trade association in the regulated industry or be related
   1-59  within the second degree by affinity or consanguinity, as
   1-60  determined under Article 5996h, Revised Statutes, to a person who
   1-61  is an officer, employee, or paid consultant of a trade association
   1-62  in the regulated industry>.
   1-63        (b)  A person is not eligible for appointment as a public
   1-64  member of the board if the person or the person's spouse:
   1-65              (1)  is registered, certified, or licensed by an
   1-66  occupational regulatory agency in the field of health care;
   1-67              (2)  is employed by or participates in the management
   1-68  of a <an agency or> business entity or other organization regulated
    2-1  by the board or receiving funds from the board <that provides
    2-2  health care services or that sells, manufactures, or distributes
    2-3  health care supplies or equipment>; <or>
    2-4              (3)  owns or<,> controls<, or has an interest in>,
    2-5  directly or indirectly, more than a 10 percent interest in <of> a
    2-6  business entity or other organization regulated by the board or
    2-7  receiving funds from the board; or
    2-8              (4)  uses or receives a substantial amount of tangible
    2-9  goods, services, or funds from the board, other than compensation
   2-10  or reimbursement authorized by law for board membership,
   2-11  attendance, or expenses <that provides health care services or that
   2-12  sells, manufactures, or distributes health care supplies or
   2-13  equipment>.
   2-14        (c)  It is a ground for removal from the board if a member:
   2-15              (1)  does not have at the time of appointment or does
   2-16  not maintain during his service on the board the qualifications
   2-17  required by Sections 7(a) and (b) of this Act; <Subsection (a) or
   2-18  (b) of this section, as appropriate; or>
   2-19              (2)  violates the prohibition prescribed by Section
   2-20  7(b) of this Act or Subsection (a) of this section;
   2-21              (3)  cannot discharge the member's duties for a
   2-22  substantial part of the term for which the member is appointed
   2-23  because of illness or disability; or
   2-24              (4)  is absent from more than half of the regularly
   2-25  scheduled board meetings that the member is eligible to attend
   2-26  during a calendar year unless the absence is excused by majority
   2-27  vote of the board.
   2-28        (d)  The validity of an action of the board is not affected
   2-29  by the fact that it is taken when a ground for removal of a board
   2-30  member exists.
   2-31        (e)  If the executive director has knowledge that a potential
   2-32  ground for removal exists, the executive director shall notify the
   2-33  president of the board of the ground.  The president shall then
   2-34  notify the governor that a potential ground for removal exists.
   2-35        SECTION 4.  Subsection (a), Section 9, Texas Pharmacy Act
   2-36  (Article 4542a-1, Vernon's Texas Civil Statutes), is amended to
   2-37  read as follows:
   2-38        (a)  The governor shall appoint the members of the board with
   2-39  the advice and consent of the senate.  Appointments to the board
   2-40  shall be made without regard to the race, color, disability
   2-41  <creed>, sex, religion, age, or national origin of the appointee.
   2-42        SECTION 5.  Section 12, Texas Pharmacy Act (Article 4542a-1,
   2-43  Vernon's Texas Civil Statutes), is amended by amending Subsections
   2-44  (c), (d), and (e) and by adding Subsection (f) to read as follows:
   2-45        (c)  The board shall employ a licensed pharmacist who shall
   2-46  serve as a secretary to and be an ex officio member of the board
   2-47  without vote to serve as a full-time employee of the board in the
   2-48  position of executive director.  The executive director shall be
   2-49  responsible for the performance of the regular administrative
   2-50  functions of the board and other duties as the board may direct.
   2-51  The executive director may not perform any discretionary or
   2-52  decision-making functions for which the board is solely
   2-53  responsible.  The board shall develop and implement policies that
   2-54  clearly define the respective responsibilities of the board and the
   2-55  staff of the board.
   2-56        (d)  The executive director or the executive director's <his>
   2-57  designee shall develop within one year of the effective date of
   2-58  this Act an intra-agency career ladder program, one part of which
   2-59  shall be the intra-agency posting of all nonentry level positions
   2-60  concurrently with <for at least 10 days prior to> any public
   2-61  posting.
   2-62        (e)  The executive director or the executive director's <his>
   2-63  designee shall develop <within one year of the effective date of
   2-64  this Act> a system of annual performance evaluations <based on
   2-65  measurable job tasks>.  All <Within two years of the effective date
   2-66  of this Act, all> merit pay for board employees <authorized by the
   2-67  executive director> must be based on the system established by this
   2-68  subsection.
   2-69        (f)  Each board member shall comply with the board member
   2-70  training requirements established by any other state agency that is
    3-1  given authority to establish the requirements for the board.
    3-2        SECTION 6.  Section 15, Texas Pharmacy Act (Article 4542a-1,
    3-3  Vernon's Texas Civil Statutes), is amended by amending Subsection
    3-4  (c) and by adding Subsections (d), (e), and (f) to read as follows:
    3-5        (c)  An <employee of the board may not be an> officer,
    3-6  employee, or paid consultant of a Texas trade association in the
    3-7  field of health care may not be a member or employee of the board
    3-8  who is exempt from the state's position classification plan or is
    3-9  compensated at or above the amount prescribed by the General
   3-10  Appropriations Act for step 1, salary group 17, of the position
   3-11  classification salary schedule <regulated industry or be related
   3-12  within the second degree by affinity or consanguinity, as
   3-13  determined under Article 5996h, Revised Statutes, to a person who
   3-14  is an officer, employee, or paid consultant of a trade association
   3-15  in the regulated industry>.
   3-16        (d)  A person who is the spouse of an officer, manager, or
   3-17  paid consultant of a Texas trade association in the field of health
   3-18  care may not be a board member and may not be a board employee who
   3-19  is exempt from the state's position classification plan or is
   3-20  compensated at or above the amount prescribed by the General
   3-21  Appropriations Act for step 1, salary group 17, of the position
   3-22  classification salary schedule.
   3-23        (e)  For the purposes of this section, a Texas trade
   3-24  association is a nonprofit, cooperative, and voluntarily joined
   3-25  association of business or professional competitors in this state
   3-26  designed to assist its members and its industry or profession in
   3-27  dealing with mutual business or professional problems and in
   3-28  promoting their common interest.
   3-29        (f)  The board shall provide to its members and employees, as
   3-30  often as necessary, information regarding their qualification for
   3-31  office or employment under this Act and their responsibilities
   3-32  under applicable laws relating to standards of conduct for state
   3-33  officers or employees.
   3-34        SECTION 7.  The Texas Pharmacy Act (Article 4542a-1, Vernon's
   3-35  Texas Civil Statutes) is amended by adding Section 15A to read as
   3-36  follows:
   3-37        Sec. 15A.  EQUAL EMPLOYMENT OPPORTUNITIES.  (a)  The
   3-38  executive director or the executive director's designee shall
   3-39  prepare and maintain a written policy statement to assure
   3-40  implementation of a program of equal employment opportunity under
   3-41  which all personnel transactions are made without regard to race,
   3-42  color, disability, sex, religion, age, or national origin.  The
   3-43  policy statement must include:
   3-44              (1)  personnel policies, including policies relating to
   3-45  recruitment, evaluation, selection, appointment, training, and
   3-46  promotion of personnel that are in compliance with requirements of
   3-47  the Commission on Human Rights Act (Article 5221k, Vernon's Texas
   3-48  Civil Statutes) and its subsequent amendments;
   3-49              (2)  a comprehensive analysis of the board work force
   3-50  that meets federal and state guidelines;
   3-51              (3)  procedures by which a determination can be made of
   3-52  significant underutilization in the board work force of all persons
   3-53  for whom federal or state guidelines encourage a more equitable
   3-54  balance; and
   3-55              (4)  reasonable methods to address those areas of
   3-56  significant underutilization appropriately.
   3-57        (b)  A policy statement prepared under Subsection (a) of this
   3-58  section must cover an annual period, be updated annually and
   3-59  reviewed by the Commission on Human Rights for compliance with
   3-60  Subsection (a)(1) of this section, and be filed with the governor's
   3-61  office.
   3-62        (c)  The governor's office shall deliver a biennial report to
   3-63  the legislature based on the information received under Subsection
   3-64  (b) of this section.  The report may be made separately or as a
   3-65  part of other biennial reports made to the legislature.
   3-66        SECTION 8.  Section 16, Texas Pharmacy Act (Article 4542a-1,
   3-67  Vernon's Texas Civil Statutes), is amended by adding Subsection (c)
   3-68  to read as follows:
   3-69        (c)  The board may not include in its rules to prohibit
   3-70  false, misleading, or deceptive practices by a person regulated by
    4-1  the board a rule that:
    4-2              (1)  restricts the use of any medium for advertising;
    4-3              (2)  restricts the person's personal appearance or use
    4-4  of the person's voice in an advertisement;
    4-5              (3)  relates to the size or duration of an
    4-6  advertisement by the person; or
    4-7              (4)  restricts the person's advertisement under a trade
    4-8  name.
    4-9        (d)  If the board determines it necessary in order to protect
   4-10  the health and welfare of the citizens of this state, it may make a
   4-11  rule concerning the operation of a licensed pharmacy located in
   4-12  this state also applicable to pharmacies licensed by the board that
   4-13  are located in another state.
   4-14        SECTION 9.  Subsection (f), Section 17, Texas Pharmacy Act
   4-15  (Article 4542a-1, Vernon's Texas Civil Statutes), is amended to
   4-16  read as follows:
   4-17        (f)  The board shall submit whatever reports are required by
   4-18  state law.  The <Before December 1 of each year, the> board shall
   4-19  file annually with the governor and the presiding officer of each
   4-20  house of the legislature a complete and detailed <a> written report
   4-21  accounting <with the legislature and the governor in which the
   4-22  board accounts> for all funds received and disbursed by the board
   4-23  during the preceding fiscal year.  The annual report must be in the
   4-24  form and reported in the time provided by the General
   4-25  Appropriations Act.
   4-26        SECTION 10.  Subsection (m), Section 17, Texas Pharmacy Act
   4-27  (Article 4542a-1, Vernon's Texas Civil Statutes), is amended to
   4-28  read as follows:
   4-29        (m)  The board shall maintain an office where permanent
   4-30  records are kept and preserve a record of its proceedings.  <The
   4-31  board shall maintain an information file about each complaint filed
   4-32  with the board relating to a licensee.  If a written complaint is
   4-33  filed with the board relating to a licensee, the board shall, at
   4-34  least semiannually, notify the parties to the complaint as to the
   4-35  status of the complaint until final disposition, unless the
   4-36  notification would jeopardize an undercover investigation.>
   4-37        SECTION 11.  The Texas Pharmacy Act (Article 4542a-1,
   4-38  Vernon's Texas Civil Statutes) is amended by adding Sections 17A,
   4-39  17B, 17C, 17D, and 17E to read as follows:
   4-40        Sec. 17A.  PUBLIC INTEREST INFORMATION AND COMPLAINTS; PUBLIC
   4-41  ACCESS TO BOARD FUNCTIONS.  (a)  The board shall prepare
   4-42  information of public interest describing the functions of the
   4-43  board and the board's procedures by which complaints are filed with
   4-44  and resolved by the board.  The board shall make the information
   4-45  available to the public and appropriate state agencies.
   4-46        (b)  The board by rule shall establish methods by which
   4-47  consumers and service recipients are notified of the name, mailing
   4-48  address, and telephone number of the board for the purpose of
   4-49  directing complaints to the board.  The board may provide for that
   4-50  notification:
   4-51              (1)  on each registration form, application, or written
   4-52  contract for services of an individual or entity regulated under
   4-53  this Act;
   4-54              (2)  on a sign prominently displayed in the place of
   4-55  business of each individual or entity regulated under this Act; or
   4-56              (3)  in a bill for service provided by an individual or
   4-57  entity regulated under this Act.
   4-58        (c)  The board shall list along with its regular telephone
   4-59  number the toll-free telephone number that may be called to present
   4-60  a complaint about a health professional if the toll-free number is
   4-61  established under other state law.
   4-62        (d)  The board shall develop and implement policies that
   4-63  provide the public with a reasonable opportunity to appear before
   4-64  the board and to speak on any issue under the jurisdiction of the
   4-65  board.
   4-66        (e)  The board shall prepare and maintain a written plan that
   4-67  describes how a person who does not speak English can be provided
   4-68  reasonable access to the board's programs.  The board shall also
   4-69  comply with federal and state laws for program and facility
   4-70  accessibility.
    5-1        Sec. 17B.  RECORDS OF COMPLAINTS.  (a)  The board shall keep
    5-2  an information file about each complaint filed with the board.  The
    5-3  board's information file shall be kept current and contain a record
    5-4  for each complaint of:
    5-5              (1)  all persons contacted in relation to the
    5-6  complaint;
    5-7              (2)  a summary of findings made at each step of the
    5-8  complaint process;
    5-9              (3)  an explanation of the legal basis and reason for a
   5-10  complaint that is dismissed; and
   5-11              (4)  other relevant information.
   5-12        (b)  If a written complaint is filed with the board that the
   5-13  board has authority to resolve, the board, at least as frequently
   5-14  as quarterly and until final disposition of the complaint, shall
   5-15  notify the parties to the complaint of the status of the complaint
   5-16  unless the notice would jeopardize an undercover investigation.
   5-17        (c)  The board by rule shall adopt a form to standardize
   5-18  information concerning complaints made to the board.  The board by
   5-19  rule shall prescribe information to be provided to a person when
   5-20  the person files a complaint with the board.
   5-21        (d)  The board shall provide reasonable assistance to a
   5-22  person who wishes to file a complaint with the board.
   5-23        Sec. 17C.  COMPLAINT INVESTIGATION AND DISPOSITION.  (a)  The
   5-24  board shall adopt rules concerning the investigation of a complaint
   5-25  filed with the board.  The rules adopted under this subsection
   5-26  shall:
   5-27              (1)  distinguish between categories of complaints;
   5-28              (2)  ensure that complaints are not dismissed without
   5-29  appropriate consideration;
   5-30              (3)  require that the board be advised of a complaint
   5-31  that is dismissed and that a letter be sent to the person who filed
   5-32  the complaint explaining the action taken on the dismissed
   5-33  complaint;
   5-34              (4)  ensure that the person who filed the complaint has
   5-35  an opportunity to explain the allegations made in the complaint;
   5-36  and
   5-37              (5)  prescribe guidelines concerning the categories of
   5-38  complaints that require the use of a private investigator and the
   5-39  procedures for the board to obtain the services of a private
   5-40  investigator.
   5-41        (b)  The board shall dispose of all complaints in a timely
   5-42  manner.  The board shall establish a timeline for conducting each
   5-43  phase of a complaint that is under the control of the board not
   5-44  later than the 30th day after the date the complaint is received by
   5-45  the board.  The timeline shall be kept in the information file for
   5-46  the complaint and all parties shall be notified of the projected
   5-47  time requirements for pursuing the complaint.  A change in the
   5-48  timeline must be noted in the complaint information file and all
   5-49  parties to the complaint must be notified not later than the
   5-50  seventh day after the date the change is made.
   5-51        (c)  The executive director of the board shall notify the
   5-52  board of a complaint that extends beyond the time prescribed by the
   5-53  board for resolving the complaint so that the board may take
   5-54  necessary action on the complaint.
   5-55        Sec. 17D.  INFORMAL PROCEEDINGS.  (a)  The board by rule
   5-56  shall adopt procedures governing:
   5-57              (1)  informal disposition of a contested case under
   5-58  Section 13(e), Administrative Procedure and Texas Register Act
   5-59  (Article 6252-13a, Vernon's Texas Civil Statutes), and its
   5-60  subsequent amendments; and
   5-61              (2)  informal proceedings held in compliance with
   5-62  Section 18(c), Administrative Procedure and Texas Register Act
   5-63  (Article 6252-13a, Vernon's Texas Civil Statutes), and its
   5-64  subsequent amendments.
   5-65        (b)  Rules adopted under this section must provide the
   5-66  complainant and the licensee an opportunity to be heard and must
   5-67  require the presence of an attorney to advise the board or the
   5-68  board's employees.  The attorney must be a member of the board's
   5-69  legal staff, if the board has a legal staff.  If the board does not
   5-70  have a legal staff, the attorney must be an employee of the office
    6-1  of the attorney general.
    6-2        Sec. 17E.  MONITORING OF LICENSE HOLDER.  The board by rule
    6-3  shall develop a system for monitoring license holders' compliance
    6-4  with the requirements of this Act.  Rules adopted under this
    6-5  section shall include procedures for monitoring a license holder
    6-6  who is ordered by the board to perform certain acts to ascertain
    6-7  that the license holder performs the required acts and to identify
    6-8  and monitor license holders who represent a risk to the public.
    6-9        SECTION 12.  Section 21, Texas Pharmacy Act (Article 4542a-1,
   6-10  Vernon's Texas Civil Statutes), is amended by amending Subsections
   6-11  (c) and (d) and adding Subsection (h) to read as follows:
   6-12        (c)  The examinations for licensing required under this
   6-13  section shall be given by the board at least two times during the
   6-14  fiscal year of the state.  The board shall determine the content
   6-15  and subject matter of each examination and determine which persons
   6-16  have successfully passed the examination.  <An applicant who fails
   6-17  the examination may retake the examination.> If requested in
   6-18  writing by a person who fails the licensing examination
   6-19  administered under this Act <so requests in writing>, the board
   6-20  shall furnish the person with an analysis of the person's <his>
   6-21  performance on the examination.
   6-22        (d)  The examination shall be prepared to measure the
   6-23  competence of the applicant to engage in the practice of pharmacy.
   6-24  The board may employ and cooperate with any organization or
   6-25  consultant in the preparation and grading of an appropriate
   6-26  examination, but shall retain the sole discretion and
   6-27  responsibility of determining which applicants have successfully
   6-28  passed the examination.  A written examination prepared or offered
   6-29  by the board, including standardized national examinations, shall
   6-30  be validated by an independent testing professional.
   6-31        (h)  The board by rule shall establish the conditions under
   6-32  which an applicant who fails the licensing examination may retake
   6-33  the examination.  The board may require an applicant to fulfill
   6-34  additional educational requirements and may deny an applicant who
   6-35  failed the examination the opportunity to retake the examination.
   6-36        SECTION 13.  The Texas Pharmacy Act (Article 4542a-1,
   6-37  Vernon's Texas Civil Statutes) is amended by adding Section 22A to
   6-38  read as follows:
   6-39        Sec. 22A.  PROVISIONAL LICENSE.  (a)  The board may, in the
   6-40  discretion of the board in each instance, on payment by the
   6-41  applicant for registration of a fee set by the board, grant a
   6-42  provisional license to an applicant who presents proof of current
   6-43  licensure in another state, the District of Columbia, or territory
   6-44  of the United States that maintains professional standards
   6-45  considered by the board to be equivalent to those set forth in this
   6-46  Act.  An applicant for the provisional license under this article
   6-47  must:
   6-48              (1)  be licensed in good standing as a pharmacist in
   6-49  another state, the District of Columbia, or a territory of the
   6-50  United States that has licensing requirements that are
   6-51  substantially equivalent to the requirements of this Act;
   6-52              (2)  have passed a national or other examination
   6-53  recognized by the board relating to pharmacy; and
   6-54              (3)  be sponsored by a person licensed by the board
   6-55  under this Act with whom the provisional license holder may
   6-56  practice under this section.
   6-57        (b)  An applicant for a provisional license may be excused
   6-58  from Subsection (a)(3) of this section if the board determines that
   6-59  compliance with that section constitutes a hardship to the
   6-60  applicant.
   6-61        (c)  A provisional license is valid until the date the board
   6-62  approves or denies the provisional license holder's application for
   6-63  a license.  The board shall issue a license under this Act to the
   6-64  holder of a provisional license under this section if:
   6-65              (1)  the provisional license holder passes the
   6-66  jurisprudence examination required by this Act;
   6-67              (2)  the board verifies that the provisional license
   6-68  holder has the academic and experience requirements for a license
   6-69  under this Act; and
   6-70              (3)  the provisional license holder satisfies any other
    7-1  license requirements under this Act.
    7-2        (d)  The board must complete the processing of a provisional
    7-3  license holder's application for a license not later than the 180th
    7-4  day after the date the provisional license is issued or at the time
    7-5  licenses are issued following the successful completion of the
    7-6  examination, whichever is later.
    7-7        SECTION 14.  Section 24, Texas Pharmacy Act (Article 4542a-1,
    7-8  Vernon's Texas Civil Statutes), is amended to read as follows:
    7-9        Sec. 24.  License renewal.  (a)  The board by rule may adopt
   7-10  a system under which licenses expire on various dates during the
   7-11  year.  For the year in which the license expiration date is
   7-12  changed, license fees payable on February 1 shall be prorated on a
   7-13  monthly basis so that each licensee shall pay only that portion of
   7-14  the license fee that is allocable to the number of months during
   7-15  which the license is valid.  On renewal of the license on the new
   7-16  expiration date, the total license renewal fee is payable <A
   7-17  license to practice pharmacy expires on December 31 of each year or
   7-18  of every other year, as determined by the board.  To be eligible to
   7-19  renew the license, a licensee must comply with the continuing
   7-20  education requirements prescribed by the board>.
   7-21        (b)  The license may be renewed for one or two years, as
   7-22  determined by the board, by payment of a renewal fee as determined
   7-23  by the board and by filing a completed application, given under
   7-24  oath, with the board for a license renewal certificate before the
   7-25  expiration date of the license.  The application must state that
   7-26  the mandatory <number of hours of> continuing education
   7-27  requirements have been completed by the licensee during the
   7-28  preceding license period.
   7-29        (c)  On timely receipt of the completed application, the
   7-30  renewal fee, and proof of completion of the continuing education
   7-31  requirements prescribed by Section 24A of this Act, the board shall
   7-32  issue a license renewal certificate bearing the pharmacist's
   7-33  license number, the period for which it is renewed, and other
   7-34  information the board determines necessary.
   7-35        (d)  If a person's license has been expired for <not more
   7-36  than> 90 days or less, the person may renew the license by paying
   7-37  to the board the required renewal fee and a fee that is one-half of
   7-38  the examination fee for the license.
   7-39        (e)  If a person's license has been expired for more than 90
   7-40  days but less than one year <two years>, the person may renew the
   7-41  license by paying to the board all unpaid renewal fees and a fee
   7-42  that is equal to the examination fee for the license.
   7-43        (f)  If a person's license has been expired for one year <two
   7-44  years> or more, the person may not renew the license <and must
   7-45  apply for a new license>.  The board may issue a new license to
   7-46  that person if the person has not had a license granted by any
   7-47  other state suspended, revoked, canceled, surrendered, or otherwise
   7-48  restricted for any reason, and if the person:
   7-49              (1)  was licensed as a pharmacist in this state, moved
   7-50  to another state, is licensed in the other state and has been
   7-51  engaged in the practice of pharmacy in the other state for the two
   7-52  years preceding the application for a new license, pays to the
   7-53  board an amount equal to the examination fee for the license, and
   7-54  passes the Texas Drug and Pharmacy Jurisprudence examination;
   7-55              (2)  was licensed as a pharmacist in this state, pays
   7-56  to the board an amount equal to the examination fee for the
   7-57  license, successfully passes the Texas Drug and Pharmacy
   7-58  Jurisprudence examination and any other examination required by the
   7-59  board, and, in addition to or in lieu of passing the examination as
   7-60  required by the board, participates in continuing pharmacy
   7-61  education and practices under conditions set by the board; or
   7-62              (3)  submits to reexamination and complies with the
   7-63  requirements and procedures for obtaining an original license.
   7-64        (g)  At least 30 days before the expiration of a person's
   7-65  license, the board shall send written notice of the impending
   7-66  license expiration to the person at the licensee's last known
   7-67  address according to the records of the board.  <The board shall
   7-68  notify each licensee in writing of the licensee's impending license
   7-69  expiration at least 60 days before the expiration date and again
   7-70  two weeks before the expiration date.  The notice must state the
    8-1  number of continuing education hours the licensee must complete to
    8-2  be eligible to renew the license.  If the licensee exceeded the
    8-3  number of hours of continuing education required for renewal during
    8-4  the preceding license period, the notice must include the number of
    8-5  hours the licensee may carry forward.>
    8-6        <(h)  The board shall specify by rule the procedures to be
    8-7  followed and the fees to be paid for renewal and penalties for late
    8-8  renewal of licenses.>
    8-9        (h) <(i)>  Practicing pharmacy without an annual or biennial
   8-10  renewal certificate for the current year, as provided by this Act,
   8-11  shall have the same effect and be subject to all penalties of
   8-12  practicing pharmacy without a license.
   8-13        (i) <(j)>  A license to practice pharmacy or annual or
   8-14  biennial renewal certificate issued by the board may not be
   8-15  duplicated in any manner except as expressly provided by this Act.
   8-16  The board may in its discretion issue duplicate copies of either
   8-17  the license to practice pharmacy or the annual or biennial renewal
   8-18  certificate on request from the holder and on payment of a fee as
   8-19  determined by the board.
   8-20        SECTION 15.  Section 24A, Texas Pharmacy Act (Article
   8-21  4542a-1, Vernon's Texas Civil Statutes), is amended to read as
   8-22  follows:
   8-23        Sec. 24A.  MANDATORY CONTINUING EDUCATION REQUIREMENTS.
   8-24  (a)  To renew a license to practice pharmacy, a licensee must
   8-25  demonstrate to the satisfaction of the board completion of the
   8-26  requirement for continuing professional education <as required by
   8-27  this section.  Each licensee shall execute a certified statement at
   8-28  the time of renewal attesting that the licensee has satisfied the
   8-29  continuing education requirement>.
   8-30        (b)  <The continuing education requirement may be met either
   8-31  by completing continuing education programs approved by the board
   8-32  or by taking and passing a standardized pharmacy examination
   8-33  approved by the board.  A licensee who elects to take the
   8-34  examination must pay the examination fee assessed by the board
   8-35  under Section 39 of this Act.>
   8-36        <(c)  The board shall adopt rules relating to the approval of
   8-37  continuing education programs and providers.  In adopting the
   8-38  rules, the board may consider providers approved by the American
   8-39  Council on Pharmaceutical Education and programs approved by the
   8-40  Texas Pharmacy Foundation.  The board shall approve home study
   8-41  courses, correspondence courses, or other similar programs.  Each
   8-42  program approved by the board shall issue a certificate of
   8-43  completion to a licensee who completes the program in a
   8-44  satisfactory manner.>
   8-45        <(d)  An applicant who satisfies the continuing education
   8-46  requirement through completion of approved programs must present
   8-47  evidence satisfactory to the board of completion of at least 12
   8-48  hours of continuing education during the preceding license period.
   8-49  A licensee who completes more than 12 hours during the preceding
   8-50  license period may carry forward a maximum of 12 hours for the next
   8-51  license period.>
   8-52        <(e)  Each licensee shall maintain records for three years
   8-53  evidencing completion of the continuing education programs
   8-54  completed by the licensee.  On an audit by the board, a licensee is
   8-55  considered in compliance with the continuing education requirements
   8-56  if the licensee submits to the board:>
   8-57              <(1)  an affidavit stating that the licensee has
   8-58  complied with those requirements; and>
   8-59              <(2)  records evidencing completion of the continuing
   8-60  education programs.>
   8-61        <(f)>  The board shall adopt rules relating to the operation
   8-62  of the mandatory continuing education programs.  In establishing
   8-63  the requirement for continuing education, the board shall consider:
   8-64              (1)  factors that lead to the competent performance of
   8-65  professional duties; and
   8-66              (2)  the continuing education needs of licensees.
   8-67        (c)  The board shall adopt rules relating to the adoption or
   8-68  approval of mandatory continuing education programs and providers
   8-69  and shall adopt rules to evaluate the effectiveness of the programs
   8-70  and a licensee's participation and performance in the programs.
    9-1        (d)  The board by rule may grant an extension to the
    9-2  mandatory continuing education requirements for good cause.
    9-3        (e) <(g)>  The board may adopt rules to exempt persons from
    9-4  all or a portion of the mandatory continuing education requirements
    9-5  <during their initial license period>.
    9-6        SECTION 16.  Subsection (a), Section 24B, Texas Pharmacy Act
    9-7  (Article 4542a-1, Vernon's Texas Civil Statutes), is amended to
    9-8  read as follows:
    9-9        (a)  The board by rule shall adopt a system for the placement
   9-10  on inactive status of a license held by a person who is licensed by
   9-11  the board to practice pharmacy but who is not eligible to renew the
   9-12  license for failure to comply with the mandatory continuing
   9-13  education requirements of Section 24A of this Act and who is not
   9-14  engaged in the practice of pharmacy in this state.  The board may
   9-15  restrict the length of time a license holder may remain on inactive
   9-16  status.
   9-17        SECTION 17.  The Texas Pharmacy Act (Article 4542a-1,
   9-18  Vernon's Texas Civil Statutes) is amended by adding Section 24C to
   9-19  read as follows:
   9-20        Sec. 24C.  TEMPORARY LICENSE.  The board by rule may provide
   9-21  for the issuance of a temporary license.
   9-22        SECTION 18.  Subsection (a), Section 26, Texas Pharmacy Act
   9-23  (Article 4542a-1, Vernon's Texas Civil Statutes), is amended to
   9-24  read as follows:
   9-25        (a)  Grounds for Disciplining a Holder of or Applicant for a
   9-26  Pharmacist License:  The board shall refuse to issue a pharmacist
   9-27  license for failure to meet the requirements of Section 21 or 22 of
   9-28  this Act.  The board may in its discretion refuse to issue or renew
   9-29  a license or may fine, reprimand, revoke, restrict, cancel, retire,
   9-30  or suspend any license granted by the board, and may probate any
   9-31  license suspension if the board finds that the applicant or
   9-32  licensee has:
   9-33              (1)  violated any provision of this Act or any of the
   9-34  rules of the board adopted under this Act;
   9-35              (2)  engaged in unprofessional conduct as that term is
   9-36  defined by the rules of the board;
   9-37              (3)  engaged in gross immorality as that term is
   9-38  defined by the rules of the board;
   9-39              (4)  developed an incapacity of a nature that prevents
   9-40  a pharmacist or applicant from engaging in the practice of pharmacy
   9-41  with reasonable skill, competence, and safety to the public.  In
   9-42  enforcing this subdivision, the board shall, on probable cause,
   9-43  request a pharmacist or applicant to submit to a mental or physical
   9-44  examination by physicians designated by the board.  If the
   9-45  pharmacist or applicant refuses to submit to the examination, the
   9-46  board shall issue an order requiring the pharmacist or applicant to
   9-47  show cause why he will not submit to the examination and shall
   9-48  schedule a hearing on the order within 30 days after notice is
   9-49  served on the pharmacist or applicant.  The pharmacist or applicant
   9-50  shall be notified by either personal service or certified mail with
   9-51  return receipt requested.  At the hearing, the pharmacist or
   9-52  applicant and an <his> attorney are entitled to present any
   9-53  testimony and other evidence to show why the pharmacist or
   9-54  applicant should not be required to submit to the examination.
   9-55  After the hearing, the board shall issue an order either requiring
   9-56  the pharmacist or applicant to submit to the examination or
   9-57  withdrawing the request for examination;
   9-58              (5)  engaged in any fraud, deceit, or misrepresentation
   9-59  as those words are defined by the rules of the board in the
   9-60  practice of pharmacy or in seeking a license to act as a
   9-61  pharmacist;
   9-62              (6)  been convicted of a felony or a misdemeanor
   9-63  involving moral turpitude by a court of competent jurisdiction;
   9-64              (7)  a drug or alcohol dependency;
   9-65              (8)  failed to keep and maintain records required by
   9-66  this Act or failed to keep and maintain complete and accurate
   9-67  records of purchases and disposals of drugs listed in the
   9-68  Controlled Substances Act or the Dangerous Drug Act;
   9-69              (9)  violated any provision of the Controlled
   9-70  Substances Act or Dangerous Drug Act or a rule relating to those
   10-1  acts or any provision of Sections 485.031-485.035, Health and
   10-2  Safety Code, or a rule adopted under Section 485.011, Health and
   10-3  Safety Code;
   10-4              (10)  aided or abetted an unlicensed individual to
   10-5  engage in the practice of pharmacy if the pharmacist knew or
   10-6  reasonably should have known that the individual was unlicensed at
   10-7  the time;
   10-8              (11)  refused an entry into any pharmacy for any
   10-9  inspection authorized by this Act if the pharmacist had received
  10-10  notification from which the pharmacist knew or reasonably should
  10-11  have known that the attempted inspection was authorized;
  10-12              (12)  violated the pharmacy or drug laws or rules of
  10-13  this state or any other state or of the United States;
  10-14              (13)  been negligent in the practice of pharmacy;
  10-15              (14)  failed to submit to an examination after hearing
  10-16  and being ordered to do so by the board pursuant to Subdivision (4)
  10-17  of this subsection;
  10-18              (15)  dispensed prescription drugs while acting outside
  10-19  the usual course and scope of professional practice; or
  10-20              (16)  had a license to practice pharmacy issued by
  10-21  another state canceled, revoked, surrendered, or suspended for
  10-22  conduct substantially equivalent to conduct described in
  10-23  Subdivisions (1) through (15) of this subsection.  A certified copy
  10-24  of the record of the state taking action as set out above shall be
  10-25  conclusive evidence of the action taken by such state.
  10-26        SECTION 19.  Subsections (a) and (b), Sections 26A, Texas
  10-27  Pharmacy Act (Article 4542a-1, Vernon's Texas Civil Statutes), are
  10-28  amended to read as follows:
  10-29        (a)  On the entry of an initial order against a person
  10-30  licensed by the board to practice pharmacy, the board may refuse to
  10-31  issue a license to an applicant or suspend the person's license.
  10-32  On the person's final conviction, the board may revoke the person's
  10-33  license.
  10-34        (b)  On the entry of an initial order against an applicant
  10-35  for a pharmacy license or a person who has been issued a license or
  10-36  renewal license for a pharmacy under this Act, or against a
  10-37  managing officer of the licensee or applicant if the licensee or
  10-38  applicant is an association, joint-stock company, partnership, or
  10-39  corporation, the board may refuse to issue the license or may
  10-40  suspend the license.  On final conviction, the board may revoke the
  10-41  license.
  10-42        SECTION 20.  Subsection (a), Section 26B, Texas Pharmacy Act
  10-43  (Article 4542a-1, Vernon's Texas Civil Statutes), is amended to
  10-44  read as follows:
  10-45        (a)  The board may in its discretion refuse to issue or renew
  10-46  a license or may fine or reprimand any licensee or revoke,
  10-47  restrict, cancel, or suspend any license granted by the board, if
  10-48  the board finds that an applicant or licensee has:
  10-49              (1)  dispensed a drug, quantity, or strength of drug
  10-50  other than that which is ordered for the patient by a practitioner
  10-51  or labeled a prescription with incorrect directions for use;
  10-52              (2)  violated any of the following provisions of this
  10-53  Act:
  10-54                    (A)  Section 29(a), (b)(5), or (c)(5);
  10-55                    (B)  Section 30(i) or (j); or
  10-56                    (C)  Section 32(a);
  10-57              (3)  failed to comply with the following requirements
  10-58  unless compliance would violate the pharmacy or drug laws or rules
  10-59  in the state in which the pharmacy is located:
  10-60                    (A)  Section 481.074 or 481.075, Health and
  10-61  Safety Code;
  10-62                    (B)  Texas substitution requirements regarding:
  10-63                          (i)  the practitioner's directions relative
  10-64  to generic substitution;
  10-65                          (ii)  the patient's right to refuse generic
  10-66  substitution; or
  10-67                          (iii)  notification to the patient of the
  10-68  patient's right to refuse substitution; <or>
  10-69                    (C)  board rules relating to the provision of
  10-70  drug information to the patient or patient's agent in written form
   11-1  or by telephone; or
   11-2                    (D)  board rules adopted pursuant to Section
   11-3  16(a) of this Act and determined by the board to be applicable
   11-4  pursuant to Section 16(d) of this Act; or
   11-5              (4)  engaged in conduct which caused serious bodily
   11-6  injury to a Texas resident.
   11-7        SECTION 21.  Subsection (d), Section 27A, Texas Pharmacy Act
   11-8  (Article 4542a-1, Vernon's Texas Civil Statutes), is amended to
   11-9  read as follows:
  11-10        (d)  The records and proceedings of the board, its authorized
  11-11  agents, or any pharmaceutical organization committee as set out in
  11-12  Subsections (a) and (b) of this section shall be confidential and
  11-13  are not considered open records for the purposes of Chapter 424,
  11-14  Acts of the 63rd Legislature, Regular Session, 1973, as amended
  11-15  (Article 6252-17a, Vernon's Texas Civil Statutes); provided,
  11-16  however, the board may disclose this confidential information only:
  11-17              (1)  in a disciplinary hearing before the board or in a
  11-18  subsequent trial or appeal of a board action or order;
  11-19              (2)  to the pharmacist licensing or disciplinary
  11-20  authorities of other jurisdictions; <or>
  11-21              (3)  pursuant to an order of a court of competent
  11-22  jurisdiction; or
  11-23              (4)  if the licensee is subject to a restriction on the
  11-24  licensee's conduct of the practice of pharmacy as a result of a
  11-25  substance abuse problem.
  11-26        SECTION 22.  Subsection (a), Section 28, Texas Pharmacy Act
  11-27  (Article 4542a-1, Vernon's Texas Civil Statutes), is amended to
  11-28  read as follows:
  11-29        (a)  On the finding of the existence of grounds for
  11-30  discipline of any person holding a license or seeking a license or
  11-31  a renewal license under this Act, the board may impose one or more
  11-32  of the following penalties:
  11-33              (1)  suspension of the offender's license;
  11-34              (2)  revocation of the offender's license;
  11-35              (3)  restriction of the offender's license to prohibit
  11-36  the offender from performing certain acts or from engaging in the
  11-37  practice of pharmacy or operating a pharmacy in a particular manner
  11-38  for a term and under conditions to be determined by the board;
  11-39              (4)  imposition of an administrative penalty under
  11-40  Section 28B of this Act <a fine not to exceed $1,000 for each
  11-41  offense involving diversion of controlled substances or a fine not
  11-42  to exceed $250 for any other offense>;
  11-43              (5)  refusal to issue or renew the offender's license;
  11-44              (6)  placement of the offender's license on probation
  11-45  and supervision by the board for a period to be determined by the
  11-46  board and imposition of a requirement that the practitioner:
  11-47                    (A)  report regularly to the board on matters
  11-48  that are the basis of the probation;
  11-49                    (B)  limit practice to the areas prescribed by
  11-50  the board; or
  11-51                    (C)  continue or review professional education
  11-52  until the practitioner attains a degree of skill satisfactory to
  11-53  the board in those areas that are the basis of the probation;
  11-54              (7)  reprimand;
  11-55              (8)  cancellation of the offender's license; <or>
  11-56              (9)  retirement of the offender's license as provided
  11-57  by board rule; or
  11-58              (10)  imposition of a civil penalty that does not
  11-59  exceed $1,000 a day and that may be collected in a suit initiated
  11-60  by the board.
  11-61        SECTION 23.  The Texas Pharmacy Act (Article 4542a-1,
  11-62  Vernon's Texas Civil Statutes) is amended by adding Section 28A to
  11-63  read as follows:
  11-64        Sec. 28A.  TEMPORARY SUSPENSION OF LICENSE.  If the majority
  11-65  of the board or a three-member committee of board members
  11-66  designated by the board determines from the evidence or information
  11-67  presented to it that a pharmacist by continuation in practice would
  11-68  constitute a continuing threat to the public welfare, the board or
  11-69  the three-member committee shall temporarily suspend the license of
  11-70  the pharmacist.  The license may be temporarily suspended without
   12-1  notice or hearing if, at the time the suspension is ordered, a
   12-2  hearing before the board on whether disciplinary proceedings under
   12-3  this Act should be initiated against the license holder is
   12-4  scheduled to be held not later than the 14th day after the date of
   12-5  the suspension.  A second hearing on the suspended license shall be
   12-6  held by the State Office of Administrative Hearings not later than
   12-7  the 60th day after the date of the suspension.  If the second
   12-8  hearing is not held in the time required by this subsection, the
   12-9  suspended license is automatically reinstated.
  12-10        SECTION 24.  The Texas Pharmacy Act (Article 4542a-1,
  12-11  Vernon's Texas Civil Statutes) is amended by adding Section 28B to
  12-12  read as follows:
  12-13        Sec. 28B.  ADMINISTRATIVE PENALTY.  (a)  The board may impose
  12-14  an administrative penalty against a person licensed or regulated
  12-15  under this Act who violates this Act or a rule or order adopted
  12-16  under this Act.
  12-17        (b)  The penalty for a violation involving the diversion of
  12-18  controlled substances may be in an amount not to exceed $5,000.
  12-19  The penalty for other violations may be in an amount not to exceed
  12-20  $2,500.  Each day a violation continues or occurs is a separate
  12-21  violation for purposes of imposing a penalty.
  12-22        (c)  The amount of the penalty shall be based on:
  12-23              (1)  the seriousness of the violation, including the
  12-24  nature, circumstances, extent, and gravity of any prohibited acts,
  12-25  and the hazard or potential hazard created to the health, safety,
  12-26  or economic welfare of the public;
  12-27              (2)  the economic harm to property or the environment
  12-28  caused by the violation;
  12-29              (3)  the history of previous violations;
  12-30              (4)  the amount necessary to deter future violations;
  12-31              (5)  efforts to correct the violation; and
  12-32              (6)  any other matter that justice may require.
  12-33        (d)  An executive director who determines that a violation
  12-34  has occurred may issue to the board a report that states the facts
  12-35  on which the determination is based and the director's
  12-36  recommendation on the imposition of a penalty, including a
  12-37  recommendation on the amount of the penalty.
  12-38        (e)  Within 14 days after the date the report is issued, the
  12-39  executive director shall give written notice of the report to the
  12-40  person.  The notice may be given by certified mail.  The notice
  12-41  must include a brief summary of the alleged violation and a
  12-42  statement of the amount of the recommended penalty and must inform
  12-43  the person that the person has a right to a hearing on the
  12-44  occurrence of the violation, the amount of the penalty, or both the
  12-45  occurrence of the violation and the amount of the penalty.
  12-46        (f)  Within 20 days after the date the person receives the
  12-47  notice, the person in writing may accept the determination and
  12-48  recommended penalty of the executive director or may make a written
  12-49  request for a hearing on the occurrence of the violation, the
  12-50  amount of the penalty, or both the occurrence of the violation and
  12-51  the amount of the penalty.
  12-52        (g)  If the person accepts the determination and recommended
  12-53  penalty of the executive director, the board by order shall approve
  12-54  the determination and impose the recommended penalty.
  12-55        (h)  If the person requests a hearing or fails to respond
  12-56  timely to the notice, the executive director shall set a hearing
  12-57  and give notice of the hearing to the person.  The hearing shall be
  12-58  held by an administrative law judge of the State Office of
  12-59  Administrative Hearings.  The administrative law judge shall make
  12-60  findings of fact and conclusions of law and promptly issue to the
  12-61  board a proposal for a decision about the occurrence of the
  12-62  violation and the amount of a proposed penalty.  Based on the
  12-63  findings of fact, conclusions of law, and proposal for a decision,
  12-64  the board by order may find that a violation has occurred and
  12-65  impose a penalty or may find that no violation occurred.
  12-66        (i)  The notice of the board's order given to the person
  12-67  under the Administrative Procedure and Texas Register Act (Article
  12-68  6252-13a, Vernon's Texas Civil Statutes) and its subsequent
  12-69  amendments must include a statement of the right of the person to
  12-70  judicial review of the order.
   13-1        (j)  Within 30 days after the date the board's order is final
   13-2  as provided by Section 16(c), Administrative Procedure and Texas
   13-3  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes), and
   13-4  its subsequent amendments, the person shall:
   13-5              (1)  pay the amount of the penalty;
   13-6              (2)  pay the amount of the penalty and file a petition
   13-7  for judicial review contesting the occurrence of the violation, the
   13-8  amount of the penalty, or both the occurrence of the violation and
   13-9  the amount of the penalty; or
  13-10              (3)  without paying the amount of the penalty, file a
  13-11  petition for judicial review contesting the occurrence of the
  13-12  violation, the amount of the penalty, or both the occurrence of the
  13-13  violation and the amount of the penalty.
  13-14        (k)  Within the 30-day period, a person who acts under
  13-15  Subsection (j)(3) of this section may:
  13-16              (1)  stay enforcement of the penalty by:
  13-17                    (A)  paying the amount of the penalty to the
  13-18  court for placement in an escrow account; or
  13-19                    (B)  giving to the court a supersedeas bond
  13-20  approved by the court for the amount of the penalty and that is
  13-21  effective until all judicial review of the board's order is final;
  13-22  or
  13-23              (2)  request the court to stay enforcement of the
  13-24  penalty by:
  13-25                    (A)  filing with the court a sworn affidavit of
  13-26  the person stating that the person is financially unable to pay the
  13-27  amount of the penalty and is financially unable to give the
  13-28  supersedeas bond; and
  13-29                    (B)  giving a copy of the affidavit to the
  13-30  executive director by certified mail.
  13-31        (l)  An executive director who receives a copy of an
  13-32  affidavit under Subsection (k)(2) of this section may file with the
  13-33  court, within five days after the date the copy is received, a
  13-34  contest to the affidavit.  The court shall hold a hearing on the
  13-35  facts alleged in the affidavit as soon as practicable and shall
  13-36  stay the enforcement of the penalty on finding that the alleged
  13-37  facts are true.  The person who files an affidavit has the burden
  13-38  of proving that the person is financially unable to pay the amount
  13-39  of the penalty and to give a supersedeas bond.
  13-40        (m)  If the person does not pay the amount of the penalty and
  13-41  the enforcement of the penalty is not stayed, the executive
  13-42  director may refer the matter to the attorney general for
  13-43  collection of the amount of the penalty.
  13-44        (n)  Judicial review of the order of the board:
  13-45              (1)  is instituted by filing a petition as provided by
  13-46  Section 19, Administrative Procedure and Texas Register Act
  13-47  (Article 6252-13a, Vernon's Texas Civil Statutes), and its
  13-48  subsequent amendments; and
  13-49              (2)  is under the substantial evidence rule.
  13-50        (o)  If the court sustains the occurrence of the violation,
  13-51  the court may uphold or reduce the amount of the penalty and order
  13-52  the person to pay the full or reduced amount of the penalty.  If
  13-53  the court does not sustain the occurrence of the violation, the
  13-54  court shall order that no penalty is owed.
  13-55        (p)  When the judgment of the court becomes final, the court
  13-56  shall proceed under this subsection.  If the person paid the amount
  13-57  of the penalty and if that amount is reduced or is not upheld by
  13-58  the court, the court shall order that the appropriate amount plus
  13-59  accrued interest be remitted to the person.  The rate of the
  13-60  interest is the rate charged on loans to depository institutions by
  13-61  the New York Federal Reserve Bank, and the interest shall be paid
  13-62  for the period beginning on the date the penalty was paid and
  13-63  ending on the date the penalty is remitted.  If the person gave a
  13-64  supersedeas bond and if the amount of the penalty is not upheld by
  13-65  the court, the court shall order the release of the bond.  If the
  13-66  person gave a supersedeas bond and if the amount of the penalty is
  13-67  reduced, the court shall order the release of the bond after the
  13-68  person pays the amount.
  13-69        (q)  A penalty collected under this section shall be remitted
  13-70  to the comptroller for deposit in the general revenue fund.
   14-1        (r)  All proceedings under this section are subject to the
   14-2  Administrative Procedure and Texas Register Act (Article 6252-13a,
   14-3  Vernon's Texas Civil Statutes) and its subsequent amendments.
   14-4        SECTION 25.  Section 29, Texas Pharmacy Act (Article 4542a-1,
   14-5  Vernon's Texas Civil Statutes), is amended by adding Subsection (h)
   14-6  to read as follows:
   14-7        (h)  A pharmacy shall retain prescription records for four
   14-8  years.
   14-9        SECTION 26.  Section 33, Texas Pharmacy Act (Article 4542a-1,
  14-10  Vernon's Texas Civil Statutes), is amended by adding Subsection (e)
  14-11  to read as follows:
  14-12        (e)  A practitioner may not issue a prescription to be
  14-13  dispensed unless the prescription contains the following typed,
  14-14  printed, or stamped information:
  14-15              (1)  the practitioner's name, address, and phone
  14-16  number; and
  14-17              (2)  the practitioner's required identification number.
  14-18        SECTION 27.  Section 39, Texas Pharmacy Act (Article 4542a-1,
  14-19  Vernon's Texas Civil Statutes), is amended to read as follows:
  14-20        Sec. 39.  Fees.  The board by rule shall establish reasonable
  14-21  and necessary fees so that the fees, in the aggregate, produce
  14-22  sufficient revenue to cover the cost of administering this Act.
  14-23  The board may not set a fee for an amount less than the amount of
  14-24  that fee on September 1, 1993. <may not charge more than the
  14-25  following fees for the performance of the following duties and
  14-26  functions to carry out the purposes of this Act:>
  14-27              <(1)  for processing application and administration of
  14-28  examination for licensure--$250;>
  14-29              <(2)  for processing application for licensure by
  14-30  reciprocity--$250 (plus the applicable license fee);>
  14-31              <(3)  for processing application and issuance of a
  14-32  pharmacist license or renewal of a pharmacist license--$100 a year;>
  14-33              <(4)  for processing of an application and issuance of
  14-34  a pharmacy license or renewal of a pharmacy license--$150; and>
  14-35              <(5)  for processing an application and the issuance or
  14-36  renewal of a pharmacist license for a pharmacist who has been
  14-37  licensed by the board for at least 50 years and who does not
  14-38  actively practice pharmacy--$75 a year.>
  14-39        SECTION 28.  Subdivision (41), Section 481.002, Health and
  14-40  Safety Code, is amended to read as follows:
  14-41              (41)  "Prescription" means an order by a practitioner
  14-42  to a pharmacist for a controlled substance for a particular patient
  14-43  that specifies:
  14-44                    (A)  the date of issue;
  14-45                    (B)  the name and address of the patient or, if
  14-46  the controlled substance is prescribed for an animal, the species
  14-47  of the animal and the name and address of its owner;
  14-48                    (C)  the name and quantity of the controlled
  14-49  substance prescribed with the quantity shown numerically followed
  14-50  by the number written as a word if the order is written or, if the
  14-51  order is communicated orally or telephonically, with the quantity
  14-52  given by the practitioner and transcribed by the pharmacist
  14-53  numerically; <and>
  14-54                    (D)  directions for the use of the drug; and
  14-55                    (E)  the legibly printed or stamped name,
  14-56  address, Federal Drug Enforcement Administration registration
  14-57  number, and telephone number of the practitioner at the
  14-58  practitioner's usual place of business.
  14-59        SECTION 29.  Subsection (i), Section 481.074, Health and
  14-60  Safety Code, is amended to read as follows:
  14-61        (i)  A prescription for a controlled substance must show:
  14-62              (1)  the quantity of the substance prescribed:
  14-63                    (A)  written as a word if the prescription is
  14-64  written; or
  14-65                    (B)  if the prescription is communicated orally
  14-66  or telephonically, as transcribed by the receiving pharmacist;
  14-67              (2)  the date of issue;
  14-68              (3)  the name and address of the patient or, if the
  14-69  controlled substance is prescribed for an animal, the species of
  14-70  the animal and the name and address of its owner;
   15-1              (4)  the name and strength of the controlled substance
   15-2  prescribed;
   15-3              (5)  the directions for use of the controlled
   15-4  substance; and
   15-5              (6)  the legibly stamped or printed name, address,
   15-6  <and> Federal Drug Enforcement Administration registration number,
   15-7  and telephone number of the practitioner at the practitioner's
   15-8  usual place of business.
   15-9        SECTION 30.  Subdivision (13), Section 483.001, Health and
  15-10  Safety Code, is amended to read as follows:
  15-11              (13)  "Prescription" means an order from a
  15-12  practitioner, or an agent of the practitioner designated in writing
  15-13  as authorized to communicate prescriptions, or an order made in
  15-14  accordance with Section 3.06(d)(5), Medical Practice Act (Article
  15-15  4495b, Vernon's Texas Civil Statutes), to a pharmacist for a
  15-16  dangerous drug to be dispensed that states:
  15-17                    (A)  the date of the order's issue;
  15-18                    (B)  the name and address of the patient;
  15-19                    (C)  if the drug is prescribed for an animal, the
  15-20  species of the animal;
  15-21                    (D)  the name and quantity of the drug
  15-22  prescribed; <and>
  15-23                    (E)  the directions for the use of the drug; and
  15-24                    (F)  the legibly printed or stamped name,
  15-25  address, Federal Drug Enforcement Administration registration
  15-26  number, and telephone number of the practitioner at the
  15-27  practitioner's usual place of business.
  15-28        SECTION 31.  (a)  The changes in law made by this Act
  15-29  relating to an administrative or civil penalty that may be imposed
  15-30  apply only to a violation of the Texas Pharmacy Act (Article
  15-31  4542a-1, Vernon's Texas Civil Statutes) or a rule adopted by the
  15-32  Texas State Board of Pharmacy that occurs on or after the effective
  15-33  date of this Act.  A violation occurs on or after the effective
  15-34  date of this Act only if each element of the violation occurs on or
  15-35  after that date.   A violation that occurs before the effective
  15-36  date of this Act is governed by the law in effect on the date the
  15-37  violation occurred, and the former law is continued in effect for
  15-38  this purpose.
  15-39        (b)(1)  As the terms of members of the Texas State Board of
  15-40  Pharmacy expire or as a vacancy occurs on the board, the governor
  15-41  shall appoint members to the board to achieve, as soon as possible,
  15-42  the membership plan prescribed for the board by this Act.
  15-43              (2)  As the terms of members expire or as a vacancy
  15-44  occurs on the board, the governor shall appoint members to the
  15-45  board and designate members to serve terms so that every two years
  15-46  the terms of one public member and two licensed pharmacist members
  15-47  expire on the same date.
  15-48        (c)  The changes in law made by this Act in the
  15-49  qualifications of members of the Texas State Board of Pharmacy do
  15-50  not affect the entitlement of a member appointed before September
  15-51  1, 1993, to continue to hold office on the board for the term for
  15-52  which the member was appointed.  The changes in the qualifications
  15-53  apply only to a member appointed on or after September 1, 1993.
  15-54        SECTION 32.  Section 17(v), Texas Pharmacy Act (Article
  15-55  4542a-1, Vernon's Texas Civil Statutes), is repealed.
  15-56        SECTION 33.  This Act takes effect September 1, 1993.
  15-57        SECTION 34.  The importance of this legislation and the
  15-58  crowded condition of the calendars in both houses create an
  15-59  emergency and an imperative public necessity that the
  15-60  constitutional rule requiring bills to be read on three several
  15-61  days in each house be suspended, and this rule is hereby suspended.
  15-62                               * * * * *
  15-63                                                         Austin,
  15-64  Texas
  15-65                                                         April 26, 1993
  15-66  Hon. Bob Bullock
  15-67  President of the Senate
  15-68  Sir:
  15-69  We, your Committee on Health and Human Services to which was
  15-70  referred S.B. No. 621, have had the same under consideration, and I
   16-1  am instructed to report it back to the Senate with the
   16-2  recommendation that it do not pass, but that the Committee
   16-3  Substitute adopted in lieu thereof do pass and be printed.
   16-4                                                         Truan,
   16-5  Acting Chair
   16-6                               * * * * *
   16-7                               WITNESSES
   16-8                                                  FOR   AGAINST  ON
   16-9  ___________________________________________________________________
  16-10  Name:  Carol Fisher                                            x
  16-11  Representing:  Tx St Bd of Pharmacy
  16-12  City:  Austin
  16-13  -------------------------------------------------------------------
  16-14  Name:  James Moore                                             x
  16-15  Representing:  Tx St Bd of Pharmacy
  16-16  City:  Austin
  16-17  -------------------------------------------------------------------
  16-18  Name:  Belinda R. Perkins                                      x
  16-19  Representing:  Tx St Bd of Pharmacy
  16-20  City:  Austin
  16-21  -------------------------------------------------------------------
  16-22  Name:  Gay Dodson
  16-23  Representing:  Tx St Bd of Pharmacy
  16-24  City:  Austin
  16-25  -------------------------------------------------------------------
  16-26  Name:  Fred S. Brinkley, Jr.                                   x
  16-27  Representing:  Tx St Bd of Pharmacy
  16-28  City:  Austin
  16-29  -------------------------------------------------------------------
  16-30                                                  FOR   AGAINST  ON
  16-31  ___________________________________________________________________
  16-32  Name:  David Holland                                           x
  16-33  Representing:  Sunset Advisory Comm
  16-34  City:  Austin
  16-35  -------------------------------------------------------------------
  16-36  Name:  Joey Longley                                            x
  16-37  Representing:  Sunset Commission
  16-38  City:  Austin
  16-39  -------------------------------------------------------------------
  16-40  Name:  Richard Beck                                            x
  16-41  Representing:  Tx Pharmaceutical Asso
  16-42  City:  Austin
  16-43  -------------------------------------------------------------------