By Van de Putte                                 H.B. No. 1283

      75R5098 SKB-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the regulation of pharmacies and pharmacists; providing

 1-3     a penalty.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 5, Texas Pharmacy Act (Article 4542a-1,

 1-6     Vernon's Texas Civil Statutes), is amended to read as follows:

 1-7           Sec. 5.  DEFINITIONS.  In this Act, unless the context of its

 1-8     use clearly indicates otherwise:

 1-9                 (1)  "A.C.P.E." means the American Council on

1-10     Pharmaceutical Education.

1-11                 (2)  "Administer" means the direct application of a

1-12     prescription drug by injection, inhalation, ingestion, or any other

1-13     means to the body of a patient by:

1-14                       (A)  a practitioner, an authorized agent under

1-15     his supervision, or other person authorized by law; or

1-16                       (B)  the patient at the direction of a

1-17     practitioner.

1-18                 (3)  "Administrative Procedure Act" means Chapter 2001,

1-19     Government Code [the Administrative Procedure and Texas Register

1-20     Act, as amended (Article 6252-13a, Vernon's Texas Civil Statutes)].

1-21                 (4)  "Board" means the Texas State Board of Pharmacy.

1-22                 (5)  "Class A pharmacy license" or "community pharmacy

1-23     license" means a license issued to a pharmacy dispensing drugs or

1-24     devices to the general public pursuant to a prescription drug

 2-1     order.

 2-2                 (6)  "Class B pharmacy license" or "nuclear pharmacy

 2-3     license" means a license issued to a pharmacy dispensing or

 2-4     providing radioactive drugs or devices for administration to an

 2-5     ultimate user.

 2-6                 (7)  "Class C pharmacy license" or "institutional

 2-7     pharmacy license" means a license issued to a pharmacy located in a

 2-8     hospital or other in-patient facility that is licensed under

 2-9     Chapter 241, Health and Safety Code, or Chapter 6, Texas Mental

2-10     Health Code (Article 5547-1 et seq., Vernon's Texas Civil

2-11     Statutes), to a hospice in-patient facility that is licensed under

2-12     Chapter 142, Health and Safety Code, or to a pharmacy located in a

2-13     hospital maintained or operated by the state.

2-14                 (8)  "Class D pharmacy license" or "clinic pharmacy

2-15     license" means a license issued to a pharmacy dispensing a limited

2-16     type of drugs or devices pursuant to a prescription drug order.

2-17                 (9)  "Class E pharmacy license" or "nonresident

2-18     pharmacy license" means a license issued under this Act to a

2-19     pharmacy located in a state of the United States other than this

2-20     state whose primary business is to dispense a prescription drug or

2-21     device under a prescription drug order and to deliver the drug or

2-22     device to a patient, including a patient in this state, by the

2-23     United States mail, a common carrier, or a delivery service.

2-24                 (10) [(11)]  "College of pharmacy" means a school,

2-25     university, or college of pharmacy that satisfies the accreditation

2-26     standards of A.C.P.E. as adopted by the board;  or that has degree

2-27     requirements which meet the standards of accreditation set by the

 3-1     board.

 3-2                 (11) [(12)]  "Compounding" means the preparation,

 3-3     mixing, assembling, packaging, or labeling of a drug or device:

 3-4                       (A)  as the result of a practitioner's

 3-5     prescription drug order or initiative based on the

 3-6     practitioner-patient-pharmacist relationship in the course of

 3-7     professional practice;

 3-8                       (B)  in anticipation of prescription drug orders

 3-9     based on routine, regularly observed prescribing patterns;  or

3-10                       (C)  for the purpose of or as an incident to

3-11     research, teaching, or chemical analysis and not for sale or

3-12     dispensing.

3-13                 (12) [(13)]  "Confidential record" means any

3-14     health-related record that contains information that identifies an

3-15     individual and that is maintained by  a pharmacy or pharmacist such

3-16     as a patient medication record, prescription drug order, or

3-17     medication order.

3-18                 (13) [(14)]  "Controlled substance" means a drug,

3-19     immediate precursor, or other substance listed in Schedules I-V or

3-20     Penalty Groups 1-4 of Chapter 481, Health and Safety Code, or a

3-21     drug, immediate precursor, or other substance included in Schedule

3-22     I, II, III, IV, or V of the Federal Comprehensive Drug Abuse

3-23     Prevention and Control Act of 1970 (21 U.S.C. Section 801 et seq.).

3-24                 (14) [(15)]  "Controlled Substances Act" means Chapter

3-25     481, Health and Safety Code, or the Federal Comprehensive Drug

3-26     Abuse Prevention and Control Act of 1970 (21 U.S.C. Section 801 et

3-27     seq.).

 4-1                 (15) [(16)]  "Dangerous drug" means any drug or device

 4-2     that is not included in Penalty Groups 1-4 of the Controlled

 4-3     Substances Act and that is unsafe for self-medication or any drug

 4-4     or device that bears or is required to bear the legend:

 4-5                       (A)  "Caution:  federal law prohibits dispensing

 4-6     without prescription";  or

 4-7                       (B)  "Caution:  federal law restricts this drug

 4-8     to use by or on the order of a licensed veterinarian."

 4-9                 (16) [(17)]  "Dangerous Drug Act" means Chapter 483,

4-10     Health and Safety Code.

4-11                 (17) [(18)]  "Deliver" or "delivery" means the actual,

4-12     constructive, or attempted transfer of a prescription drug or

4-13     device or controlled substance from one person to another, whether

4-14     or not for a consideration.

4-15                 (18) [(19)]  "Designated agent" means:

4-16                       (A)  a licensed nurse, physician assistant,

4-17     pharmacist, or other individual designated by a practitioner, and

4-18     for whom the practitioner assumes legal responsibility, who

4-19     communicates prescription drug orders to a pharmacist;

4-20                       (B)  a licensed nurse, physician assistant, or

4-21     pharmacist employed in a health care facility to whom the

4-22     practitioner communicates a prescription drug order; or

4-23                       (C)  a registered nurse or physician assistant

4-24     authorized by a practitioner to carry out a prescription drug order

4-25     for dangerous drugs under Subdivision (5) or (6), Subsection (d),

4-26     Section 3.06, Medical Practice Act (Article 4495b, Vernon's Texas

4-27     Civil Statutes).

 5-1                 (19) [(20)]  "Device" means an instrument, apparatus,

 5-2     implement, machine, contrivance, implant, in vitro reagent, or

 5-3     other similar or related article, including any component part or

 5-4     accessory, that is required under federal or state law to be

 5-5     ordered or prescribed by a practitioner.

 5-6                 (20) [(21)]  "Dispense" means preparing, packaging,

 5-7     compounding, or labeling for delivery a prescription drug or device

 5-8     in the course of professional practice to an ultimate user or his

 5-9     agent by or pursuant to the lawful order of a practitioner.

5-10                 (21) [(22)]  "Distribute" means the delivery of a

5-11     prescription drug or device other than by administering or

5-12     dispensing.

5-13                 (22) [(23)]  "Drug" means:

5-14                       (A)  a substance recognized as drugs in the

5-15     current official United States Pharmacopoeia, official National

5-16     Formulary, official Homeopathic Pharmacopoeia, or other drug

5-17     compendium or any supplement to any of them;

5-18                       (B)  a substance intended for use in the

5-19     diagnosis, cure, mitigation, treatment, or prevention of disease in

5-20     man or other animals;

5-21                       (C)  a substance, other than food, intended to

5-22     affect the structure or any function of the body of man or other

5-23     animals;

5-24                       (D)  a substance intended for use as a component

5-25     of any articles specified in Paragraph (A), (B), or (C) of this

5-26     subdivision;

5-27                       (E)  a dangerous drug; or

 6-1                       (F)  a controlled substance.

 6-2                 (23) [(24)]  "Drug regimen review" includes the

 6-3     following activities:

 6-4                       (A)  evaluation of prescription drug or

 6-5     medication orders and patient medication records for:

 6-6                             (i)  known allergies;

 6-7                             (ii)  rational therapy-contraindications;

 6-8                             (iii)  reasonable dose and route of

 6-9     administration;  and

6-10                             (iv)  reasonable directions for use;

6-11                       (B)  evaluation of prescription drug or

6-12     medication orders and patient medication records for duplication of

6-13     therapy;

6-14                       (C)  evaluation of prescription drug or

6-15     medication orders and patient medication records for:

6-16                             (i)  drug-drug interactions;

6-17                             (ii)  drug-food interactions;

6-18                             (iii)  drug-disease interactions;

6-19                             (iv)  adverse drug reactions; and

6-20                       (D)  evaluation of prescription drug and

6-21     medication orders and patient medication records for proper

6-22     utilization, including overutilization or underutilization.

6-23                 (24) [(25)]  "Internship" means a practical experience

6-24     program that is approved by the board.

6-25                 (25) [(26)]  "Label" means written, printed, or graphic

6-26     matter on the immediate container of a drug or device.

6-27                 (26) [(27)]  "Labeling" means the process of affixing a

 7-1     label including all information required by federal and state law

 7-2     or regulation to any drug or device container.  The term does not

 7-3     include the labeling by a manufacturer, packer, or distributor of a

 7-4     nonprescription drug or commercially packaged prescription drug or

 7-5     device, or unit dose packaging.

 7-6                 (27) [(28)]  "Manufacturing" means the production,

 7-7     preparation, propagation, conversion, or processing of a drug or

 7-8     device, either directly or indirectly, by extraction from

 7-9     substances of natural origin or independently by means of chemical

7-10     or biological synthesis and includes any packaging or repackaging

7-11     of the substances or labeling or relabeling of the container and

7-12     the promotion and marketing of such drugs or devices.

7-13     Manufacturing also includes the preparation and promotion of

7-14     commercially available products from bulk compounds for resale by

7-15     pharmacies, practitioners, or other persons but does not include

7-16     compounding.

7-17                 (28) [(29)]  "Medication order" means an order from a

7-18     practitioner or a practitioner's designated agent for

7-19     administration of a drug or device.

7-20                 (29) [(30)]  "Nonprescription drug" means a nonnarcotic

7-21     drug or device that may be sold without a prescription and that is

7-22     labeled and packaged in compliance with applicable state or federal

7-23     law.

7-24                 (30) [(31)]  "Patient counseling" means the

7-25     communication by the pharmacist of information, as specified in the

7-26     rules of the board, to the patient or caregiver, in order to

7-27     improve therapy by ensuring proper use of drugs and devices.

 8-1                 (31) [(32)]  "Person" means an individual, corporation,

 8-2     government or governmental subdivision or agency, business trust,

 8-3     estate, trust, partnership, association, or any other legal entity.

 8-4                 (32) [(33)]  "Pharmaceutical care" is the provision of

 8-5     drug therapy and other pharmaceutical services defined in the rules

 8-6     of the board and intended to assist in the cure or prevention of a

 8-7     disease, elimination or reduction of a patient's symptoms, or

 8-8     arresting or slowing of a disease process.

 8-9                 (33) [(34)]  "Pharmacist" means a person licensed by

8-10     the board to practice pharmacy.

8-11                 (34) [(35)]  "Pharmacist-in-charge" means the

8-12     pharmacist designated on a pharmacy license as the pharmacist who

8-13     has the authority or responsibility for a pharmacy's compliance

8-14     with laws and rules pertaining to the practice of pharmacy.

8-15                 (35) [(36)]  "Pharmacist-intern" means an undergraduate

8-16     student enrolled in the professional sequence of a college of

8-17     pharmacy approved by the board and participating in a school-based,

8-18     board-approved internship program or a graduate of a college of

8-19     pharmacy who is participating in a board-approved internship.

8-20                 (36) [(37)]  "Pharmacy" means a facility at which

8-21     prescription drug or medication orders are received, processed, or

8-22     dispensed under this Act, the Dangerous Drug Act, or the Controlled

8-23     Substances Act [licensed by the board pursuant to Section 29 of

8-24     this Act].

8-25                 (37)  "Pharmacy technician" means an individual

8-26     employed by a pharmacy whose responsibility is to provide technical

8-27     services that do not require professional judgment regarding the

 9-1     preparation and distribution of drugs and who works under the

 9-2     direct supervision of and is responsible to a pharmacist.

 9-3                 (38)  "Practice of pharmacy" means:

 9-4                       (A)  provision of those acts or services

 9-5     necessary to provide pharmaceutical care;

 9-6                       (B)  interpretation and evaluation of

 9-7     prescription drug orders or medication orders;

 9-8                       (C)  participation in drug and device selection

 9-9     as authorized by law, drug administration, drug regimen review, or

9-10     drug or drug-related research;

9-11                       (D)  provision of patient counseling;

9-12                       (E)  responsibility for:

9-13                             (i)  dispensing of prescription drug orders

9-14     or distribution of medication orders;

9-15                             (ii)  compounding and labeling of drugs and

9-16     devices, except labeling by a manufacturer, repackager, or

9-17     distributor of nonprescription drugs and commercially packaged

9-18     prescription drugs and devices;

9-19                             (iii)  proper and safe storage of drugs and

9-20     devices;  or

9-21                             (iv)  maintenance of proper records for

9-22     drugs and devices;  and

9-23                       (F)  performance of a specific act of drug

9-24     therapy management for a patient delegated to a pharmacist by a

9-25     written protocol from a physician licensed in this state in

9-26     compliance with the Medical Practice Act (Article 4495b, Vernon's

9-27     Texas Civil Statutes).

 10-1                (39)  "Practitioner" means:

 10-2                      (A)  a physician, dentist, podiatrist,

 10-3    veterinarian, or other person licensed or registered to prescribe,

 10-4    distribute, administer, or dispense a prescription drug or device

 10-5    in the course of professional practice in this state;

 10-6                      (B)  a person licensed by another state in a

 10-7    health field in which, under Texas law, licensees in this state may

 10-8    legally prescribe dangerous drugs or a person practicing in another

 10-9    state and licensed by another state as a physician, dentist,

10-10    veterinarian, or podiatrist, having a current Federal Drug

10-11    Enforcement Administration registration number, and who may legally

10-12    prescribe Schedule II, III, IV, or V controlled substances in such

10-13    other state;  or

10-14                      (C)  a person licensed in the Dominion of Canada

10-15    or the United Mexican States in a health field in which, under the

10-16    laws of this state, a licensee may legally prescribe dangerous

10-17    drugs.  "Practitioner" does not include a person licensed under

10-18    this Act.

10-19                (40)  "Preceptor" means a pharmacist [in good standing]

10-20    licensed in this state to practice pharmacy who meets the preceptor

10-21    requirements specified by rule and certified by the board to

10-22    supervise  and be responsible for the activities and functions of a

10-23    pharmacist-intern in the internship program.

10-24                (41)  "Prescription drug" means:

10-25                      (A)  a substance for which federal or state law

10-26    requires a prescription before it may be legally dispensed to the

10-27    public;

 11-1                      (B)  a drug or device that under federal law is

 11-2    required, prior to being dispensed or delivered, to be labeled with

 11-3    either of the following statements:

 11-4                            (i)  "Caution:  federal law prohibits

 11-5    dispensing without prescription"; or

 11-6                            (ii)  "Caution:  federal law restricts this

 11-7    drug to use by or on the order of a licensed veterinarian"; or

 11-8                      (C)  a drug or device that is required by any

 11-9    applicable federal or state law or regulation to be dispensed on

11-10    prescription only or is restricted to use by a practitioner only.

11-11                (42)  "Prescription drug order" means:

11-12                      (A)  an order from a practitioner or a

11-13    practitioner's designated agent to a pharmacist for a drug or

11-14    device to be dispensed; or

11-15                      (B)  an order pursuant to Subdivision (5) or (6),

11-16    Subsection (d), Section 3.06, Medical Practice Act (Article 4495b,

11-17    Vernon's Texas Civil Statutes).

11-18                (43)  "Prospective drug use review" means a review of

11-19    the patient's drug therapy and prescription drug order or

11-20    medication order, as defined in the rules of the board, prior to

11-21    dispensing or distributing the drug.

11-22                (44)  "Provide" means to supply one or more unit doses

11-23    of a nonprescription drug or dangerous drug to a patient.

11-24                (45)  "Radioactive drug" means a drug that exhibits

11-25    spontaneous disintegration of unstable nuclei with the emission of

11-26    nuclear particles or photons, including any nonradioactive reagent

11-27    kit or nuclide generator that is intended to be used in the

 12-1    preparation of any such substance.

 12-2                (46)  "Substitution" means the dispensing of a drug or

 12-3    a brand of drug other than that which is ordered or prescribed.

 12-4                (47)  "Texas trade association" means a nonprofit,

 12-5    cooperative association of business or professional competitors in

 12-6    this state whose purpose is to assist its members, industry, or

 12-7    profession and whose members have joined voluntarily. ["Supportive

 12-8    personnel" means those individuals utilized in pharmacies whose

 12-9    responsibility it shall be to provide technical services that do

12-10    not require professional judgment concerned with the preparation

12-11    and distribution of drugs under the direct supervision of and

12-12    responsible to a pharmacist.]

12-13                (48)  "Ultimate user" means a person who has obtained

12-14    and possesses a prescription drug or device for the person's own

12-15    use or for the use of a member of the person's household or for

12-16    administering to an animal owned by the person or by a member of

12-17    the person's household.

12-18                (49)  "Unit dose packaging" means the ordered amount of

12-19    drug in a dosage form ready for administration to a particular

12-20    patient, by the prescribed route at the prescribed time, and

12-21    properly labeled with name, strength, and expiration date of the

12-22    drug.

12-23                (50)  "Written protocol" means a physician's order,

12-24    standing medical order, standing delegation order, or other order

12-25    or protocol as defined by rule of the Texas State Board of Medical

12-26    Examiners under the Medical Practice Act (Article 4495b, Vernon's

12-27    Texas Civil Statutes).

 13-1          SECTION 2.  Section 8(a), Texas Pharmacy Act (Article

 13-2    4542a-1, Vernon's Texas Civil Statutes), is amended to read as

 13-3    follows:

 13-4          (a)  A licensed pharmacist member of the board:

 13-5                (1)  may not be:

 13-6                      (A)  a salaried faculty member at a college of

 13-7    pharmacy; or

 13-8                      (B)  an officer, employee, or paid consultant of

 13-9    a Texas trade association in the field of health care or a spouse

13-10    of an officer, employee, or paid consultant; and

13-11                (2)  must at the time of his appointment:

13-12                      (A) [(1)]  be a resident of this state;

13-13                      (B) [(2)]  be licensed for the five years

13-14    immediately preceding appointment and be in good standing to engage

13-15    in the practice of pharmacy in this state; and

13-16                      (C) [(3)]  be engaged in the practice of pharmacy

13-17    in this state.

13-18          SECTION 3.  Section 8, Texas Pharmacy Act (Article 4542a-1,

13-19    Vernon's Texas Civil Statutes), is amended by adding Subsection (f)

13-20    to read as follows:

13-21          (f)  The board shall provide to its members, as often as

13-22    necessary, information regarding their qualifications for office or

13-23    employment under this Act and their responsibilities under

13-24    applicable laws relating to standards of conduct for state officers

13-25    or employees.

13-26          SECTION 4.  Section 14(c), Texas Pharmacy Act (Article

13-27    4542a-1, Vernon's Texas Civil Statutes), is amended to read as

 14-1    follows:

 14-2          (c)  Except as otherwise provided by this subsection, all

 14-3    board meetings and hearings shall be open to the public.  The board

 14-4    may, in its discretion and in accordance with the open meetings

 14-5    law, Chapter 551, Government Code, [Chapter 271, Acts of the 60th

 14-6    Legislature, Regular Session, 1967, as amended (Article 6252-17,

 14-7    Vernon's Texas Civil Statutes),] conduct any portion of its meeting

 14-8    in executive session.  The board may in its discretion conduct

 14-9    deliberations relative to licensee disciplinary actions in

14-10    executive session.  At the conclusion of its deliberations relative

14-11    to licensee disciplinary action, the board shall vote and announce

14-12    its decision relative to the licensee in open session.  The board

14-13    in executive session may conduct disciplinary hearings relating to

14-14    a pharmacist or pharmacy student who is impaired because of

14-15    chemical abuse or mental or physical illness.

14-16          SECTION 5.  Sections 15(c), (d), and (f), Texas Pharmacy Act

14-17    (Article 4542a-1, Vernon's Texas Civil Statutes), are amended to

14-18    read as follows:

14-19          (c)  An officer, employee, or paid consultant of a Texas

14-20    trade association in the field of health care may not be an [a

14-21    member or] employee of the board who is exempt from the state's

14-22    position classification plan or is compensated at or above the

14-23    amount prescribed by the General Appropriations Act for step 1,

14-24    salary group 17, of the position classification salary schedule.

14-25          (d)  A person who is the spouse of an officer, manager, or

14-26    paid consultant of a Texas trade association in the field of health

14-27    care may not be a [board member and may not be a] board employee

 15-1    who is exempt from the state's position classification plan or is

 15-2    compensated at or above the amount prescribed by the General

 15-3    Appropriations Act for step 1, salary group 17, of the position

 15-4    classification salary schedule.

 15-5          (f)  The board shall provide to its [members and] employees,

 15-6    as often as necessary, information regarding their qualification

 15-7    for office or employment under this Act and their responsibilities

 15-8    under applicable laws relating to standards of conduct for state

 15-9    officers or employees.

15-10          SECTION 6.  Sections 17(a), (o), and (q), Texas Pharmacy Act

15-11    (Article 4542a-1, Vernon's Texas Civil Statutes), are amended to

15-12    read as follows:

15-13          (a)  The board is responsible for the regulation of the

15-14    practice of pharmacy in this state, including the following:

15-15                (1)  the licensing by examination or by reciprocity of

15-16    applicants who are qualified to engage in the practice of pharmacy

15-17    and the licensing of pharmacies under this Act;

15-18                (2)  the renewal of licenses to engage in the practice

15-19    of pharmacy and licenses to operate pharmacies;

15-20                (3)  the determination and issuance of standards for

15-21    recognition and approval of degree requirements of colleges of

15-22    pharmacy whose graduates shall be eligible for licensing in this

15-23    state and the specification and enforcement of requirements for

15-24    practical training, including internship;

15-25                (4)  the enforcement of those provisions of this Act

15-26    relating to the conduct or competence of pharmacists practicing in

15-27    this state and the conduct of pharmacies operating in this state

 16-1    and the suspension, revocation, fining, reprimanding, cancellation,

 16-2    or restriction of licenses to engage in the practice of pharmacy or

 16-3    to operate a pharmacy;

 16-4                (5)  the specifications of conditions under which a

 16-5    pharmacist may administer medications which at a minimum shall

 16-6    include the following:

 16-7                      (A)  a licensed health care provider authorized

 16-8    to administer the medication is not reasonably available to

 16-9    administer the medication;

16-10                      (B)  failure to administer the medication might

16-11    result in a significant delay or interruption of a critical phase

16-12    of drug therapy;

16-13                      (C)  the pharmacist possesses the necessary skill

16-14    and education to administer the medication;

16-15                      (D)  the pharmacist notifies the appropriate

16-16    licensed health care provider responsible for the patient's care

16-17    within a reasonable time that the medication was administered;

16-18                      (E)  a pharmacist may not administer medications

16-19    to a patient where the patient resides, except in a licensed

16-20    nursing home or hospital;

16-21                      (F)  the authority of the pharmacist to

16-22    administer medications may not be delegated;

16-23                      (G)  nothing in this subdivision shall be

16-24    construed to prohibit a pharmacist from preparing or manipulating

16-25    biotechnological agents or devices; and

16-26                      (H)  nothing in this subdivision shall be

16-27    construed as prohibiting a pharmacist from performing an act

 17-1    delegated by a physician in accordance with the provisions of

 17-2    Subsection (d), Section 3.06, Medical Practice Act (Article 4495b,

 17-3    Vernon's Texas Civil Statutes), and the pharmacist performing such

 17-4    a delegated medical act shall be considered to be performing a

 17-5    medical act and not as engaged in the practice of pharmacy;

 17-6                (6)  the regulation of the training, qualifications,

 17-7    and employment of pharmacist-interns; and

 17-8                (7)  the enforcement of this Act and any rules adopted

 17-9    under this Act.

17-10          (o)  The board:

17-11                (1)  shall [may] establish rules for the use of

17-12    pharmacy technicians [supportive personnel] and the duties of those

17-13    technicians [personnel] in pharmacies licensed by the board,

17-14    provided that those technicians [personnel] are responsible to and

17-15    directly supervised by a pharmacist licensed by the board; provided

17-16    however that the board may not adopt rules or regulations

17-17    establishing ratios of pharmacists to pharmacy technicians

17-18    [supportive personnel] in Class C pharmacies; and

17-19                (2)  may determine and issue standards for recognition

17-20    and approval of training programs for pharmacy technicians and

17-21    maintain a list of training programs that meet the standards.

17-22          (q)  Board investigative files and all information and

17-23    materials compiled by the board in connection with an investigation

17-24    are confidential and are not subject to disclosure under Chapter

17-25    552, Government Code [424, Acts of the 63rd Legislature, Regular

17-26    Session, 1973, as amended (Article 6252-17a, Vernon's Texas Civil

17-27    Statutes)], and are not subject to disclosure, discovery, subpoena,

 18-1    or other means of legal compulsion for their release to anyone

 18-2    other than the board or its employees or agents involved in

 18-3    licensee discipline except that this information may be disclosed

 18-4    to:

 18-5                (1)  persons involved with the board in a disciplinary

 18-6    action against the licensee;

 18-7                (2)  pharmacist or pharmacy licensing or disciplinary

 18-8    authorities of other jurisdictions;

 18-9                (3)  a pharmaceutical peer review committee as outlined

18-10    in Section 27A of this Act;

18-11                (4)  law enforcement agencies;  and

18-12                (5)  persons engaged in bona fide research, if all

18-13    individual-identifying information has been deleted.

18-14          SECTION 7.  Section 17D(a), Texas Pharmacy Act (Article

18-15    4542a-1, Vernon's Texas Civil Statutes), is revised to read as

18-16    follows:

18-17          (a)  The board by rule shall adopt procedures governing:

18-18                (1)  informal disposition of a contested case under

18-19    Chapter 2001, Government Code [Section 13(e), Administrative

18-20    Procedure and Texas Register  Act (Article 6252-13a, Vernon's Texas

18-21    Civil Statutes), and its subsequent amendments]; and

18-22                (2)  informal proceedings held in compliance with

18-23    Chapter 2001, Government Code [Section 18(c), Administrative

18-24    Procedure and Texas Register  Act (Article 6252-13a, Vernon's Texas

18-25    Civil Statutes), and its subsequent amendments].

18-26          SECTION 8.  Sections 19(a), (f), and (g), Texas Pharmacy Act

18-27    (Article 4542a-1, Vernon's Texas Civil Statutes), are amended to

 19-1    read as follows:

 19-2          (a)  A person may not:

 19-3                (1)  dispense or distribute prescription drugs unless

 19-4    he is a licensed pharmacist or is authorized by this Act to

 19-5    dispense or distribute prescription drugs; or

 19-6                (2)  operate a pharmacy unless he first obtains a

 19-7    license to operate a pharmacy.

 19-8          (f)  This Act does not apply to:

 19-9                (1)  a member of the faculty of a college of pharmacy

19-10    that is recognized by the board if the faculty member is a licensed

19-11    pharmacist and performs his services for the benefit of the college

19-12    only;

19-13                (2)  [a pharmacist-intern;]

19-14                [(3)]  a person who procures prescription drugs for

19-15    lawful research, teaching, or testing and not for resale; or

19-16                (3) [(4)]  a home and community support services agency

19-17    that possesses a dangerous drug as authorized by Section 142.0061,

19-18    Health and Safety Code.

19-19          (g)  Any person found by the board to have unlawfully engaged

19-20    in the practice of pharmacy or unlawfully operated a pharmacy is

19-21    subject to a  civil penalty under Section 37A [fine to be imposed

19-22    by the board not to exceed $1,000 for each offense].  Each

19-23    violation of this Act or the rules adopted under this Act

19-24    pertaining to unlawfully engaging in the practice of pharmacy or

19-25    unlawfully operating a pharmacy also constitutes a Class A

19-26    misdemeanor.

19-27          SECTION 9.  Section 20, Texas Pharmacy Act (Article 4542a-1,

 20-1    Vernon's Texas Civil Statutes), is amended to read as follows:

 20-2          Sec. 20.  PHARMACIST-INTERN REGISTRATION.  (a)  A person must

 20-3    register with the board before beginning the board-approved

 20-4    internship in this state.  An application for the registration of a

 20-5    pharmacist-intern must be on a form prescribed by the board.

 20-6    Registration shall remain in effect as long as the person meets the

 20-7    qualifications for internship as specified by rules adopted by the

 20-8    board [during internship training and thereafter until the earlier

 20-9    of the following occurs:]

20-10                [(1)  the failure of the pharmacist-intern to take the

20-11    next regularly scheduled examination; or]

20-12                [(2)  the failure to pass the next regularly scheduled

20-13    examination].

20-14          (b)  The board may in its discretion refuse to issue a

20-15    registration to an applicant and may restrict, suspend, or revoke a

20-16    pharmacist-intern registration for any violation of this Act.  In

20-17    enforcing Section 26(a)(4), the board shall, on probable cause,

20-18    request a pharmacist-intern or pharmacist-intern applicant to

20-19    submit to a mental or physical examination by physicians or other

20-20    health care professionals designated by the board.  If the

20-21    pharmacist-intern or applicant refuses to submit to the

20-22    examination, the board shall issue an order requiring the

20-23    pharmacist-intern or applicant to show cause why he will not submit

20-24    to the examination and shall schedule a hearing on the order within

20-25    30 days after notice is served on the pharmacist-intern or

20-26    applicant.  The board shall notify the pharmacist-intern or

20-27    applicant by either personal service or certified mail with return

 21-1    receipt requested.  At the hearing, the pharmacist-intern or

 21-2    applicant and an attorney are entitled to present any testimony and

 21-3    other evidence to show why the pharmacist-intern or applicant

 21-4    should not be required to submit to the examination.  After the

 21-5    hearing, the board shall issue an order either requiring the

 21-6    pharmacist-intern or applicant to submit to the examination or

 21-7    withdrawing the request for examination.

 21-8          SECTION 10.  Sections 21(a) and (e), Texas Pharmacy Act

 21-9    (Article 4542a-1, Vernon's Texas Civil Statutes), are amended to

21-10    read as follows:

21-11          (a)  To qualify for a license to practice pharmacy, an

21-12    applicant for licensing by examination must submit to the board a

21-13    license fee as determined by the board and a completed application

21-14    on a form prescribed by the board with satisfactory sworn evidence

21-15    that he:

21-16                (1)  is at least 18 years old;

21-17                (2)  is of good moral character;

21-18                (3)  has completed a minimum of a 1,000-hour internship

21-19    or other program that has been approved by the board or has

21-20    demonstrated, to the board's satisfaction, experience in the

21-21    practice of pharmacy that meets or exceeds the minimum internship

21-22    requirements of the board;

21-23                (4)  has graduated and received a [the first

21-24    professional undergraduate degree or the advanced] professional

21-25    practice degree, as defined  by the rules adopted by the board,

21-26    from an accredited pharmacy degree program approved by the board;

21-27                (5)  has passed the examination required by the board;

 22-1    and

 22-2                (6)  has not had a pharmacist license granted by

 22-3    another state suspended, revoked, canceled, surrendered, or

 22-4    otherwise restricted for any reason.

 22-5          (e)  The [Within 30 days after the date a licensing

 22-6    examination is administered under this Act, the] board shall notify

 22-7    each examinee of the results of the examination[.  However, if an

 22-8    examination is graded or reviewed by a national testing service,

 22-9    the board shall notify each examinee of the results of the

22-10    examination] within 30 days [two weeks] after the date the board

22-11    receives the results from a national [the] testing service.  [If

22-12    the notice of the examination results will be delayed for more than

22-13    90 days after the examination date, the board shall notify the

22-14    examinee of the reason for the delay before the 90th day.]

22-15          SECTION 11.  Section 22(a), Texas Pharmacy Act (Article

22-16    4542a-1, Vernon's Texas Civil Statutes), is amended to read as

22-17    follows:    

22-18          (a)  To qualify for a license to practice pharmacy by

22-19    reciprocity, an applicant for licensing must:

22-20                (1)  submit to the board a reciprocity fee as

22-21    determined by the board and a completed application given under

22-22    oath, in the form prescribed by the board;

22-23                (2)  have good moral character;

22-24                (3)  have graduated and received a [the first

22-25    professional undergraduate degree or the advanced] professional

22-26    practice degree, as defined  by the rules adopted by the board,

22-27    from an accredited pharmacy degree program approved by the board;

 23-1                (4)  have possessed at the time of initial licensing as

 23-2    a pharmacist other qualifications necessary to have been eligible

 23-3    for licensing at that time in this state;

 23-4                (5)  have presented to the board proof of initial

 23-5    licensing by examination and proof that the license and other

 23-6    license or licenses granted to the applicant by any other state

 23-7    have not been suspended, revoked, canceled, surrendered, or

 23-8    otherwise restricted for any reason; and

 23-9                (6)  pass the Texas [Drug and] Pharmacy Jurisprudence

23-10    examination.

23-11          SECTION 12.  Section 26(b), Texas Pharmacy Act (Article

23-12    4542a-1, Vernon's Texas Civil Statutes), is amended to read as

23-13    follows:

23-14          (b)  Grounds for Disciplining a Holder of a Pharmacy License:

23-15    The board shall refuse to issue a pharmacy license for failure to

23-16    meet the requirements of Section 29 or 30 of this Act.  The board

23-17    may in its discretion refuse to issue or renew a license or may

23-18    assess a penalty, reprimand, revoke, restrict, cancel, or suspend

23-19    any license granted by the board, and may probate any license

23-20    suspension if the board finds that the applicant or licensee has:

23-21                (1)  been convicted of a felony or a misdemeanor

23-22    involving moral turpitude, or if the applicant or licensee is a

23-23    legal entity such as an association, joint stock company,

23-24    partnership, or corporation,  that a managing officer has been

23-25    convicted of a felony or a misdemeanor involving moral turpitude

23-26    under the law of this state, another state, or the United States;

23-27                (2)  advertised any prescription drugs or devices in a

 24-1    deceitful, misleading, or fraudulent manner;

 24-2                (3)  violated any provision of this Act or any rule

 24-3    adopted under this Act or that any owner or employee of a pharmacy

 24-4    has violated any provision of this Act or any rule adopted under

 24-5    this Act;

 24-6                (4)  sold without legal authorization prescription

 24-7    drugs or devices to persons other than:

 24-8                      (A)  a pharmacy licensed by the board;

 24-9                      (B)  a practitioner;

24-10                      (C)  a person who procures prescription drugs or

24-11    devices for the purpose of lawful research, teaching, or testing,

24-12    and not for resale;

24-13                      (D)  a manufacturer or wholesaler registered with

24-14    the commissioner of health as required by Chapter 431, Health and

24-15    Safety Code;  or

24-16                      (E)  a carrier or warehouseman;

24-17                (5)  allowed an employee who is not a licensed

24-18    pharmacist to practice pharmacy;

24-19                (6)  sold adulterated or misbranded prescription or

24-20    nonprescription drugs;

24-21                (7)  failed to engage in or ceased to engage in the

24-22    business described in the application for a license;

24-23                (8)  failed to keep and maintain records as required by

24-24    this Act, the Controlled Substances Act, Dangerous Drug Act, or

24-25    rules adopted under this Act or the Dangerous Drug Act; [or]

24-26                (9)  failed to establish and maintain effective

24-27    controls against diversion of prescription drugs into other than

 25-1    legitimate medical, scientific, or industrial channels as provided

 25-2    by this Act or other state or federal laws or rules; or

 25-3                (10)  engaged in any fraud, deceit, or

 25-4    misrepresentation as defined by the rules adopted by the board in

 25-5    operating a pharmacy or in seeking a license to operate a pharmacy.

 25-6          SECTION 13.  Section 26A(c), Texas Pharmacy Act (Article

 25-7    4542a-1, Vernon's Texas Civil Statutes), is amended to read as

 25-8    follows:

 25-9          (c)  Any disciplinary action taken by the board under this

25-10    section is governed by the Administrative Procedure Act (Chapter

25-11    2001, Government Code [and Texas Register Act (Article 6252-13a,

25-12    Vernon's Texas Civil Statutes]) and the rules of practice and

25-13    procedure adopted by the board.

25-14          SECTION 14.  Section 27, Texas Pharmacy Act (Article 4542a-1,

25-15    Vernon's Texas Civil Statutes), is amended to read as follows:

25-16          Sec. 27.  PROCEDURE.  Except as provided in Section 27A of

25-17    this Act, any disciplinary action taken by the board under Section

25-18    26, 26A, or 26B of this Act is governed by the Administrative

25-19    Procedure Act (Chapter 2001, Government Code [and Texas Register

25-20    Act (Article 6252-13a, Vernon's Texas Civil Statutes]) and the

25-21    rules of practice and procedure before the board.

25-22          SECTION 15.  Section 27A(d), Texas Pharmacy Act (Article

25-23    4542a-1, Vernon's Texas Civil Statutes), is amended to read as

25-24    follows:

25-25          (d)  The records and proceedings of the board, its authorized

25-26    agents, or any pharmaceutical organization committee as set out in

25-27    Subsections (a) and (b) of this section shall be confidential and

 26-1    are not considered open records for the purposes of Chapter 552,

 26-2    Government Code [424, Acts of the 63rd Legislature, Regular

 26-3    Session, 1973, as  amended (Article 6252-17a, Vernon's Texas Civil

 26-4    Statutes)]; provided, however, the board may disclose this

 26-5    confidential information only:

 26-6                (1)  in a disciplinary hearing before the board or in a

 26-7    subsequent trial or appeal of a board action or order;

 26-8                (2)  to the pharmacist licensing or disciplinary

 26-9    authorities of other jurisdictions;

26-10                (3)  pursuant to an order of a court of competent

26-11    jurisdiction;  or

26-12                (4)  pursuant to Subsection (j) of this section.

26-13          SECTION 16.  Section 27B(c), Texas Pharmacy Act (Article

26-14    4542a-1, Vernon's Texas Civil Statutes), is amended to read as

26-15    follows:

26-16          (c)  The identity of a person who reports to or assists the

26-17    board under this section and any document that could disclose the

26-18    identity of that person is confidential and does not constitute

26-19    public information for the purposes of Chapter 552, Government Code

26-20    [424, Acts of the 63rd Legislature, Regular Session, 1973 (Article

26-21    6252-17a, Vernon's Texas Civil Statutes)].

26-22          SECTION 17.  Section 28(a), Texas Pharmacy Act (Article

26-23    4542a-1, Vernon's Texas Civil Statutes), is amended to read as

26-24    follows:

26-25          (a)  On the finding of the existence of grounds for

26-26    discipline of any person holding a license or seeking a license or

26-27    a renewal license under this Act, the board may impose one or more

 27-1    of the following penalties:

 27-2                (1)  suspension of the offender's license;

 27-3                (2)  revocation of the offender's license;

 27-4                (3)  restriction of the offender's license to prohibit

 27-5    the offender from performing certain acts or from engaging in the

 27-6    practice of pharmacy or operating a pharmacy in a particular manner

 27-7    for a term and under conditions to be determined by the board;

 27-8                (4)  imposition of an administrative penalty under

 27-9    Section 28B of this Act;

27-10                (5)  refusal to issue or renew the offender's license;

27-11                (6)  placement of the offender's license on probation

27-12    and supervision by the board for a period to be determined by the

27-13    board and imposition of a requirement that the licensee:

27-14                      (A)  report regularly to the board on matters

27-15    that are the basis of the probation;

27-16                      (B)  limit practice to the areas prescribed by

27-17    the board;  [or]

27-18                      (C)  continue or review professional education

27-19    until the licensee attains a degree of skill satisfactory to the

27-20    board in those areas that are the basis of the probation; or

27-21                      (D)  pay the board a probation fee to defer the

27-22    costs of monitoring a licensee during the period of probation;

27-23                (7)  reprimand;

27-24                (8)  cancellation of the offender's license; or

27-25                (9)  retirement of the offender's license as provided

27-26    by board rule[; or]

27-27                [(10)  imposition of a civil penalty that does not

 28-1    exceed $1,000 for each day of each violation and that may be

 28-2    collected in a suit initiated by the board].

 28-3          SECTION 18.  Section 29(e), Texas Pharmacy Act (Article

 28-4    4542a-1, Vernon's Texas Civil Statutes), is amended to read as

 28-5    follows:

 28-6          (e)  The board shall have the discretion to determine under

 28-7    which classifications a pharmacy applicant may be licensed.  With

 28-8    respect to Class C pharmacies, the board may establish rules for

 28-9    the use of pharmacy technicians [supportive personnel] and the

28-10    duties of those technicians [personnel] in Class C pharmacies

28-11    licensed by the board, provided that these technicians [personnel]

28-12    are responsible to and directly supervised by a pharmacist licensed

28-13    by the board;  provided, however, the board may not adopt any rule

28-14    setting ratios with respect to pharmacists and pharmacy technicians

28-15    [supportive personnel] or limiting the number of pharmacy

28-16    technicians [supportive personnel] that may be utilized.

28-17          SECTION 19.  Section 35, Texas Pharmacy Act (Article 4542a-1,

28-18    Vernon's Texas Civil Statutes), is amended to read as follows:

28-19          Sec. 35.  UNLAWFUL USE OF "PHARMACY."   (a)  A person may not

28-20    display in or on any store or place of business the word

28-21    "pharmacy," either in English or any other language, any other word

28-22    or combination of words of the same or similar meaning, or any

28-23    graphic representation that would mislead or tend to mislead the

28-24    public unless it is a pharmacy licensed under this Act.

28-25          (b)  A person may not advertise any store or place of

28-26    business as a pharmacy or provide pharmacy services unless the

28-27    facility is a pharmacy licensed under this Act.

 29-1          SECTION 20.  The Texas Pharmacy Act (Article 4542a-1,

 29-2    Vernon's Texas Civil Statutes) is amended by adding Section 37A to

 29-3    read as follows:

 29-4          Sec. 37A.  CIVIL PENALTY.  (a)  A person who violates the

 29-5    license requirements of this Act is liable to the state for a civil

 29-6    penalty of $1,000 for each day the violation continues.

 29-7          (b)  The attorney general, district attorney, county

 29-8    attorney, or city attorney may sue in a district court of Travis

 29-9    County to collect the penalty.

29-10          SECTION 21.  Section 40(h), Texas Pharmacy Act (Article

29-11    4542a-1, Vernon's Texas Civil Statutes), is amended to read as

29-12    follows:

29-13          (h)  A pharmacist may dispense a generically equivalent drug

29-14    if the practitioner does not write by hand on the face of his or

29-15    her written prescription the words "brand medically necessary" or

29-16    analogous words. [No written prescription issued by a practitioner,

29-17    as such term is defined in Section 5(39)(A) of this Act, may be

29-18    dispensed unless it is ordered on a form containing two signature

29-19    lines of equal prominence, side by side, at the bottom of the form.

29-20    Under either signature line shall be printed clearly the words

29-21    "product selection permitted," and under the other signature line

29-22    shall be printed clearly the words "dispense as written."  The

29-23    practitioner shall communicate dispensing instructions to the

29-24    pharmacist by signing on the appropriate line.  If the

29-25    practitioner's signature does not clearly indicate that the

29-26    prescription must be dispensed as written, generically equivalent

29-27    drug selection is permitted.  No prescription form furnished a

 30-1    practitioner shall contain a preprinted order for a drug product by

 30-2    brand name, generic name, or manufacturer.]

 30-3          SECTION 22.  Sections 483.001(10) and (11), Health and Safety

 30-4    Code, are amended to read as follows:

 30-5                (10)  "Pharmacy" means a facility where prescription

 30-6    drug or medication orders are received, processed, dispensed, or

 30-7    distributed under this chapter, Chapter 481, and the Texas Pharmacy

 30-8    Act (Article 4542a-1, Vernon's Texas Civil Statutes) [licensed by

 30-9    the board pursuant to Section 29, Texas Pharmacy Act (Article

30-10    4542a-1, Vernon's Texas Civil Statutes)].

30-11                (11)  "Practice of pharmacy" means:

30-12                      (A)  provision of those acts or services

30-13    necessary to provide pharmaceutical care;

30-14                      (B)  interpretation and evaluation of

30-15    prescription drug orders or medication orders;

30-16                      (C)  participation in drug and device selection

30-17    as authorized by law, drug administration, drug regimen review, or

30-18    drug or drug-related research;

30-19                      (D)  provision of patient counseling; [and]

30-20                      (E)  responsibility for:

30-21                            (i)  dispensing of prescription drug orders

30-22    or distribution of medication orders in the patient's best

30-23    interest;

30-24                            (ii)  compounding and labeling of drugs and

30-25    devices, except labeling by a manufacturer, repackager, or

30-26    distributor of nonprescription drugs and commercially packaged

30-27    prescription drugs and devices;

 31-1                            (iii)  proper and safe storage of drugs and

 31-2    devices;  and

 31-3                            (iv)  maintenance of proper records for

 31-4    drugs and devices.  In this subdivision, "device" has the meaning

 31-5    assigned by the Texas Pharmacy Act (Article 4542a-1, Vernon's Texas

 31-6    Civil Statutes); and

 31-7                      (F)  performance of a specific act of drug

 31-8    therapy management for a patient delegated to a pharmacist by a

 31-9    written protocol from a physician licensed by the state under the

31-10    Medical Practice Act (Article 4495b, Vernon's Texas Civil

31-11    Statutes).

31-12          SECTION 23.  Section 483.003(b), Health and Safety Code, is

31-13    amended to read as follows:

31-14          (b)  On making that finding, the Texas Board of Health

31-15    [board] may limit the availability of the abused drug by permitting

31-16    its dispensing only on the prescription of a practitioner described

31-17    by Section 483.001(12)(A) or (B).

31-18          SECTION 24.  Section 483.042(e), Health and Safety Code, is

31-19    amended to read as follows:

31-20          (e)  The labeling provisions of Subsection (a) do not apply

31-21    to a dangerous drug prescribed or dispensed for administration to a

31-22    patient who is institutionalized.  The board shall adopt rules for

31-23    the labeling of such a drug [food production animals in an

31-24    agricultural operation under a written medical directive or

31-25    treatment guideline from a veterinarian licensed under The

31-26    Veterinary Licensing Act (Article 8890, Revised Statutes) and its

31-27    subsequent amendments].

 32-1          SECTION 25.  Chapter 107, Acts of the 41st Legislature,

 32-2    Regular Session, 1929 (Article 4542a, Vernon's Texas Civil

 32-3    Statutes), is repealed.

 32-4          SECTION 26.  Section 26A(b), Texas Pharmacy Act (Article

 32-5    4542a-1, Vernon's Texas Civil Statutes), as amended by Section 7,

 32-6    Chapter 789, Acts of the 73rd Legislature, Regular Session, 1993,

 32-7    is repealed.

 32-8          SECTION 27.  This Act takes effect September 1, 1997.

 32-9          SECTION 28.  (a)  This Act applies only to a license issued

32-10    by the Texas State Board of Pharmacy on or after the effective date

32-11    of this Act.  A license issued or renewed before that date is

32-12    governed by the law in effect on the date the license was issued or

32-13    renewed, and the former law is continued in effect for that

32-14    purpose.

32-15          (b)  Section 37A, Texas Pharmacy Act (Article 4542a-1,

32-16    Vernon's Texas Civil Statutes), as added by this Act, applies only

32-17    to a violation of the licensing requirements of the Texas Pharmacy

32-18    Act (Article 4542a-1, Vernon's Texas Civil Statutes) that occurs on

32-19    or after the effective date of this Act.

32-20          SECTION 29.  The importance of this legislation and the

32-21    crowded condition of the calendars in both houses create an

32-22    emergency and an imperative public necessity that the

32-23    constitutional rule requiring bills to be read on three several

32-24    days in each house be suspended, and this rule is hereby suspended.