BILL ANALYSIS H.B. 1506 By: Van de Putte (Sponsor) Health and Human Services 05-04-95 Senate Committee Report (Unamended) BACKGROUND During the last legislative session the Texas Pharmacy Act (Article 4542a-1, V.T.C.S.) was amended by replacing its previous authority to assess a fine with the authority to assess an administrative penalty. Section 28B was added to the Act to outline procedures for the agency to follow in the assessment of an administrative penalty. These procedures differ from those the agency follows for imposing other sanctions. As a result of this change, the agency may be required to conduct two separate disciplinary hearings to assess an administrative penalty and another sanction, such as probation. PURPOSE As proposed, H.B. 1506 requires the Texas State Board of Pharmacy to impose administrative penalties under the provisions of Chapter 2001, Government Code. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is granted to the Texas State Board of Pharmacy under SECTION 1 (Section 28B(d), Article 4542a-1, V.T.C.S.) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Sections 28B(d)-(s), Article 4542a-1, V.T.C.S. (Texas Pharmacy Act), as follows: (d) Requires the Texas State Board of Pharmacy (board), by rule, to prescribe procedures, consistent with Chapter 2001, Government Code, relating to contested cases, by which the board may impose an administrative penalty for violation of this Act, rather than authorizing the executive director or a designee to issue a report to the board concerning the violation. (e) Requires the board, if it finds by order that a violation has occurred and imposes a penalty, to give notice to the person who committed the violation of the order. Requires the notice to include a statement of the person's right to judicial review of the order. Deletes the time frame for issuing the notice and specific information to be included in the notice. Deletes existing Subsections (f)-(i). (f) Requires the person to take specific measures within 30 days after the board's order is final as provided by Section 2001.144, Government Code, rather than Section 16(c), Article 6252-13a, V.T.C.S. Redesignates existing Subsection (j). (g)-(i) Redesignate existing Subsections (k)-(m) and make conforming changes. Deletes existing Subsection (n). (j) Authorizes the court, if it sustains the occurrence of the violation on appeal, to uphold or reduce the penalty and order the person to pay the full or reduced penalty. Redesignates existing Subsection (o). (k)-(l) Redesignate existing Subsections (p) and (q). (m) Redesignates existing Subsection (r) and makes conforming changes. (n) Redesignates existing Subsection (s). SECTION 2. Effective date: September 1, 1995. SECTION 3. Emergency clause.