By:  Lucio                                            S.B. No. 1774

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the creation of a long-term care pharmacy and a

 1-2     long-term care satellite pharmacy license.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 242.161, Health and Safety Code, is

 1-5     amended to read as follows:

 1-6           Sec. 242.161.  EMERGENCY MEDICATION KIT.  (a)  A pharmacy [An

 1-7     institution licensed under this chapter] is entitled to maintain a

 1-8     supply of controlled substances and dangerous drugs for a

 1-9     resident's immediate therapeutic needs, provided the supply of

1-10     drugs is maintained in compliance with the Texas Pharmacy Act

1-11     (Article 4542a-1, Vernon's Texas Civil Statutes) [in an emergency

1-12     medication kit for a resident's emergency medication needs].

1-13           (b)  [The controlled substances shall be labeled in

1-14     accordance with all applicable state and federal food and drug

1-15     laws, including Chapter 481 (Texas Controlled Substances Act).]

1-16           [(c)  The board shall adopt rules governing the amount, type,

1-17     and procedure for use of the controlled substances in the emergency

1-18     medication kit.  The storage of the controlled substances in the

1-19     kit is under the supervision of the consultant pharmacist.]

1-20           [(d)]  The administration of the controlled substances and

1-21     dangerous drugs authorized in this section [in the emergency

1-22     medication kit] shall comply with all applicable laws.

1-23           SECTION 2.  Section 5, Texas Pharmacy Act, (Article 4542a-1,

 2-1     Vernon's Texas Civil Statutes), is amended to read as follows:

 2-2           Sec. 5.  DEFINITIONS.  In this Act, unless the context of its

 2-3     use clearly indicates otherwise:

 2-4                 (1)  "A.C.P.E." means the American Council on

 2-5     Pharmaceutical Education.

 2-6                 (2)  "Administer" means the direct application of a

 2-7     prescription drug by injection, inhalation, ingestion, or any other

 2-8     means to the body of a patient by:

 2-9                       (A)  a practitioner, an authorized agent under

2-10     his supervision, or other person authorized by law; or

2-11                       (B)  the patient at the direction of a

2-12     practitioner.

2-13                 (3)  "Administrative Procedure Act" means Chapter 2001,

2-14     Government Code [the Administrative Procedure and Texas Register

2-15     Act, as amended (Article 6252-13a, Vernon's Texas Civil Statutes)].

2-16                 (4)  "Board" means the Texas State Board of Pharmacy.

2-17                 (5)  "Class A pharmacy license" or "community pharmacy

2-18     license" means a license issued to a pharmacy dispensing drugs or

2-19     devices to the general public pursuant to a prescription drug

2-20     order.

2-21                 (6)  "Class B pharmacy license" or "nuclear pharmacy

2-22     license" means a license issued to a pharmacy dispensing or

2-23     providing radioactive drugs or devices for administration to an

2-24     ultimate user.

2-25                 (7)  "Class C pharmacy license" or "institutional

 3-1     pharmacy license" means a license issued to a pharmacy located in a

 3-2     hospital or other in-patient facility that is licensed under

 3-3     Chapter 241 or 577, Health and Safety Code, [or Chapter 6, Texas

 3-4     Mental Health Code (Article 5547-1 et seq., Vernon's Texas Civil

 3-5     Statutes),] to a hospice in-patient facility that is licensed under

 3-6     Chapter 142, Health and Safety Code, or to a pharmacy located in a

 3-7     hospital maintained or operated by the state.

 3-8                 (8)  "Class D pharmacy license" or "clinic pharmacy

 3-9     license" means a license issued to a pharmacy dispensing a limited

3-10     type of drugs or devices pursuant to a prescription drug order.

3-11                 (9)  "Class E pharmacy license" or "nonresident

3-12     pharmacy license" means a license issued under this Act to a

3-13     pharmacy located in a state of the United States other than this

3-14     state whose primary business is to dispense a prescription drug or

3-15     device under a prescription drug order and to deliver the drug or

3-16     device to a patient, including a patient in this state, by the

3-17     United States mail, a common carrier, or a delivery service.

3-18                 (10)  "Class L pharmacy license" or "long-term care

3-19     pharmacy license" means a license issued to a pharmacy that

3-20     dispenses prescription drugs or devices under a prescription drug

3-21     order to patients who are residents of a long-term care facility

3-22     licensed under Chapter 242, Health and Safety Code.

3-23                 (11)  "Class S pharmacy license" or "long-term care

3-24     satellite pharmacy license" means a license issued to a holder of a

3-25     Class A, Class C, or Class L pharmacy license under this Act to

 4-1     maintain a supply of controlled substances and dangerous drugs at a

 4-2     long-term care facility licensed under Chapter 242, Health and

 4-3     Safety Code.  The controlled substances and dangerous drugs

 4-4     maintained at the long-term care facility shall only be those

 4-5     required to meet the immediate therapeutic needs of the patients of

 4-6     the facility.

 4-7                 (12)  "College of pharmacy" means a school, university,

 4-8     or college of pharmacy that satisfies the accreditation standards

 4-9     of A.C.P.E. as adopted by the board; or that has degree

4-10     requirements which meet the standards of accreditation set by the

4-11     board.

4-12                 (13) [(12)]  "Compounding" means the preparation,

4-13     mixing, assembling, packaging, or labeling of a drug or device:

4-14                       (A)  as the result of a practitioner's

4-15     prescription drug order or initiative based on the

4-16     practitioner-patient-pharmacist relationship in the course of

4-17     professional practice;

4-18                       (B)  in anticipation of prescription drug orders

4-19     based on routine, regularly observed prescribing patterns; or

4-20                       (C)  for the purpose of or as an incident to

4-21     research, teaching, or chemical analysis and not for sale or

4-22     dispensing.

4-23                 (14) [(13)]  "Confidential record" means any

4-24     health-related record maintained by a pharmacy or pharmacist such

4-25     as a patient medication record, prescription drug order, or

 5-1     medication order.

 5-2                 (15) [(14)]  "Controlled substance" means a drug,

 5-3     immediate precursor, or other substance listed in Schedules I-V or

 5-4     Penalty Groups 1-4 of Chapter 481, Health and Safety Code, or a

 5-5     drug, immediate precursor, or other substance included in Schedule

 5-6     I, II, III, IV, or V of the Federal Comprehensive Drug Abuse

 5-7     Prevention and Control Act of 1970 (21 U.S.C. Section 801 et seq.).

 5-8                 (16) [(15)]  "Controlled Substances Act" means Chapter

 5-9     481, Health and Safety Code, or the Federal Comprehensive Drug

5-10     Abuse Prevention and Control Act of 1970 (21 U.S.C. Section 801 et

5-11     seq.).

5-12                 (17) [(16)]  "Dangerous drug" means any drug or device

5-13     that is not included in Penalty Groups 1-4 of the Controlled

5-14     Substances Act and that is unsafe for self-medication or any drug

5-15     or device that bears or is required to bear the legend:

5-16                       (A)  "Caution:  federal law prohibits dispensing

5-17     without prescription"; or

5-18                       (B)  "Caution:  federal law restricts this drug

5-19     to use by or on the order of a licensed veterinarian."

5-20                 (18) [(17)]  "Dangerous Drug Act" means Chapter 483,

5-21     Health and Safety Code.

5-22                 (19) [(18)]  "Deliver" or "delivery" means the actual,

5-23     constructive, or attempted transfer of a prescription drug or

5-24     device or controlled substance from one person to another, whether

5-25     or not for a consideration.

 6-1                 (20) [(19)]  "Designated agent" means:

 6-2                       (A)  a licensed nurse, physician assistant,

 6-3     pharmacist, or other individual designated by a practitioner, and

 6-4     for whom the practitioner assumes legal responsibility, who

 6-5     communicates prescription drug orders to a pharmacist;

 6-6                       (B)  a licensed nurse, physician assistant, or

 6-7     pharmacist employed in a health care facility to whom the

 6-8     practitioner communicates a prescription drug order; or

 6-9                       (C)  a registered nurse or physician assistant

6-10     authorized by a practitioner to carry out a prescription drug order

6-11     for dangerous drugs under Subdivision (5) or (6), Subsection (d),

6-12     Section 3.06, Medical Practice Act (Article 4495b, Vernon's Texas

6-13     Civil Statutes).

6-14                 (21) [(20)]  "Device" means an instrument, apparatus,

6-15     implement, machine, contrivance, implant, in vitro reagent, or

6-16     other similar or related article, including any component part or

6-17     accessory, that is required under federal or state law to be

6-18     ordered or prescribed by a practitioner.

6-19                 (22) [(21)]  "Dispense" means preparing, packaging,

6-20     compounding, or labeling for delivery a prescription drug or device

6-21     in the course of professional practice to an ultimate user or his

6-22     agent by or pursuant to the lawful order of a practitioner.

6-23                 (23) [(22)]  "Distribute" means the delivery of a

6-24     prescription drug or device other than by administering or

6-25     dispensing.

 7-1                 (24) [(23)]  "Drug" means:

 7-2                       (A)  a substance recognized as drugs in the

 7-3     current official United States Pharmacopoeia, official National

 7-4     Formulary, official Homeopathic Pharmacopoeia, or other drug

 7-5     compendium or any supplement to any of them;

 7-6                       (B)  a substance intended for use in the

 7-7     diagnosis, cure, mitigation, treatment, or prevention of disease in

 7-8     man or other animals;

 7-9                       (C)  a substance, other than food, intended to

7-10     affect the structure or any function of the body of man or other

7-11     animals;

7-12                       (D)  a substance intended for use as a component

7-13     of any articles specified in Paragraph (A), (B), or (C) of this

7-14     subdivision;

7-15                       (E)  a dangerous drug; or

7-16                       (F)  a controlled substance.

7-17                 (25) [(24)]  "Drug regimen review" includes the

7-18     following activities:

7-19                       (A)  evaluation of prescription drug or

7-20     medication orders and patient medication records for:

7-21                             (i)  known allergies;

7-22                             (ii)  rational therapy-contraindications;

7-23                             (iii)  reasonable dose and route of

7-24     administration; and

7-25                             (iv)  reasonable directions for use;

 8-1                       (B)  evaluation of prescription drug or

 8-2     medication orders and patient medication records for duplication of

 8-3     therapy;

 8-4                       (C)  evaluation of prescription drug or

 8-5     medication orders and patient medication records for:

 8-6                             (i)  drug-drug interactions;

 8-7                             (ii)  drug-food interactions;

 8-8                             (iii)  drug-disease interactions;

 8-9                             (iv)  adverse drug reactions; and

8-10                       (D)  evaluation of prescription drug and

8-11     medication orders and patient medication records for proper

8-12     utilization, including overutilization or underutilization.

8-13                 (26) [(25)]  "Internship" means a practical experience

8-14     program that is approved by the board.

8-15                 (27) [(26)]  "Label" means written, printed, or graphic

8-16     matter on the immediate container of a drug or device.

8-17                 (28) [(27)]  "Labeling" means the process of affixing a

8-18     label including all information required by federal and state law

8-19     or regulation to any drug or device container.  The term does not

8-20     include the labeling by a manufacturer, packer, or distributor of a

8-21     nonprescription drug or commercially packaged prescription drug or

8-22     device, or unit dose packaging.

8-23                 (29) [(28)]  "Manufacturing" means the production,

8-24     preparation, propagation, conversion, or processing of a drug or

8-25     device, either directly or indirectly, by extraction from

 9-1     substances of natural origin or independently by means of chemical

 9-2     or biological synthesis and includes any packaging or repackaging

 9-3     of the substances or labeling or relabeling of the container and

 9-4     the promotion and marketing of such drugs or devices.

 9-5     Manufacturing also includes the preparation and promotion of

 9-6     commercially available products from bulk compounds for resale by

 9-7     pharmacies, practitioners, or other persons but does not include

 9-8     compounding.

 9-9                 (30) [(29)]  "Medication order" means an order from a

9-10     practitioner or a practitioner's designated agent for

9-11     administration of a drug or device.

9-12                 (31) [(30)]  "Nonprescription drug" means a nonnarcotic

9-13     drug or device that may be sold without a prescription and that is

9-14     labeled and packaged in compliance with applicable state or federal

9-15     law.

9-16                 (32) [(31)]  "Patient counseling" means the

9-17     communication by the pharmacist of information, as specified in the

9-18     rules of the board, to the patient or caregiver, in order to

9-19     improve therapy by ensuring proper use of drugs and devices.

9-20                 (33) [(32)]  "Person" means an individual, corporation,

9-21     government or governmental subdivision or agency, business trust,

9-22     estate, trust, partnership, association, or any other legal entity.

9-23                 (34) [(33)]  "Pharmaceutical care" is the provision of

9-24     drug therapy and other pharmaceutical services defined in the rules

9-25     of the board and intended to assist in the cure or prevention of a

 10-1    disease, elimination or reduction of a patient's symptoms, or

 10-2    arresting or slowing of a disease process.

 10-3                (35) [(34)]  "Pharmacist" means a person licensed by

 10-4    the board to practice pharmacy.

 10-5                (36) [(35)]  "Pharmacist-in-charge" means the

 10-6    pharmacist designated on a pharmacy license as the pharmacist who

 10-7    has the authority or responsibility for a pharmacy's compliance

 10-8    with laws and rules pertaining to the practice of pharmacy.

 10-9                (37) [(36)]  "Pharmacist-intern" means an undergraduate

10-10    student enrolled in the professional sequence of a college of

10-11    pharmacy approved by the board and participating in a school-based,

10-12    board-approved internship program or a graduate of a college of

10-13    pharmacy who is participating in a board-approved internship.

10-14                (38) [(37)]  "Pharmacy" means a facility licensed by

10-15    the board pursuant to Section 29 of this Act.

10-16                (39) [(38)]  "Practice of pharmacy" means:

10-17                      (A)  provision of those acts or services

10-18    necessary to provide pharmaceutical care;

10-19                      (B)  interpretation and evaluation of

10-20    prescription drug orders or medication orders;

10-21                      (C)  participation in drug and device selection

10-22    as authorized by law, drug administration, drug regimen review, or

10-23    drug or drug-related research;

10-24                      (D)  provision of patient counseling;

10-25                      (E)  responsibility for:

 11-1                            (i)  dispensing of prescription drug orders

 11-2    or distribution of medication orders;

 11-3                            (ii)  compounding and labeling of drugs and

 11-4    devices, except labeling by a manufacturer, repackager, or

 11-5    distributor of nonprescription drugs and commercially packaged

 11-6    prescription drugs and devices;

 11-7                            (iii)  proper and safe storage of drugs and

 11-8    devices; or

 11-9                            (iv)  maintenance of proper records for

11-10    drugs and devices; and

11-11                      (F)  performance of a specific act of drug

11-12    therapy management for a patient delegated to a pharmacist by a

11-13    written protocol from a physician licensed in this state in

11-14    compliance with the Medical Practice Act (Article 4495b, Vernon's

11-15    Texas Civil Statutes).

11-16                (40) [(39)]  "Practitioner" means:

11-17                      (A)  a physician, dentist, podiatrist,

11-18    veterinarian, or other person licensed or registered to prescribe,

11-19    distribute, administer, or dispense a prescription drug or device

11-20    in the course of professional practice in this state;

11-21                      (B)  a person licensed by another state in a

11-22    health field in which, under Texas law, licensees in this state may

11-23    legally prescribe dangerous drugs or a person practicing in another

11-24    state and licensed by another state as a physician, dentist,

11-25    veterinarian, or podiatrist, having a current Federal Drug

 12-1    Enforcement Administration registration number, and who may legally

 12-2    prescribe Schedule II, III, IV, or V controlled substances in such

 12-3    other state; or

 12-4                      (C)  a person licensed in the Dominion of Canada

 12-5    or the United Mexican States in a health field in which, under the

 12-6    laws of this state, a licensee may legally prescribe dangerous

 12-7    drugs.  "Practitioner" does not include a person licensed under

 12-8    this Act.

 12-9                (41) [(40)]  "Preceptor" means a pharmacist in good

12-10    standing licensed in this state to practice pharmacy and certified

12-11    by the board to supervise and be responsible for the activities and

12-12    functions of a pharmacist-intern in the internship program.

12-13                (42) [(41)]  "Prescription drug" means:

12-14                      (A)  a substance for which federal or state law

12-15    requires a prescription before it may be legally dispensed to the

12-16    public;

12-17                      (B)  a drug or device that under federal law is

12-18    required, prior to being dispensed or delivered, to be labeled with

12-19    either of the following statements:

12-20                            (i)  "Caution:  federal law prohibits

12-21    dispensing without prescription"; or

12-22                            (ii)  "Caution:  federal law restricts this

12-23    drug to use by or on the order of a licensed veterinarian"; or

12-24                      (C)  a drug or device that is required by any

12-25    applicable federal or state law or regulation to be dispensed on

 13-1    prescription only or is restricted to use by a practitioner only.

 13-2                (43) [(42)]  "Prescription drug order" means:

 13-3                      (A)  an order from a practitioner or a

 13-4    practitioner's designated agent to a pharmacist for a drug or

 13-5    device to be dispensed; or

 13-6                      (B)  an order pursuant to Subdivision (5) or (6),

 13-7    Subsection (d), Section 3.06, Medical Practice Act (Article 4495b,

 13-8    Vernon's Texas Civil Statutes).

 13-9                (44) [(43)]  "Prospective drug use review" means a

13-10    review of the patient's drug therapy and prescription drug order or

13-11    medication order, as defined in the rules of the board, prior to

13-12    dispensing or distributing the drug.

13-13                (45) [(44)]  "Provide" means to supply one or more unit

13-14    doses of a nonprescription drug or dangerous drug to a patient.

13-15                (46) [(45)]  "Radioactive drug" means a drug that

13-16    exhibits spontaneous disintegration of unstable nuclei with the

13-17    emission of nuclear particles or photons, including any

13-18    nonradioactive reagent kit or nuclide generator that is intended to

13-19    be used in the preparation of any such substance.

13-20                (47) [(46)]  "Substitution" means the dispensing of a

13-21    drug or a brand of drug other than that which is ordered or

13-22    prescribed.

13-23                (48) [(47)]  "Supportive personnel" means those

13-24    individuals utilized in pharmacies whose responsibility it shall be

13-25    to provide technical services that do not require professional

 14-1    judgment concerned with the preparation and distribution of drugs

 14-2    under the direct supervision of and responsible to a pharmacist.

 14-3                (49) [(48)]  "Ultimate user" means a person who has

 14-4    obtained and possesses a prescription drug or device for the

 14-5    person's own use or for the use of a member of the person's

 14-6    household or for administering to an animal owned by the person or

 14-7    by a member of the person's household.

 14-8                (50) [(49)]  "Unit dose packaging" means the ordered

 14-9    amount of drug in a dosage form ready for administration to a

14-10    particular patient, by the prescribed route at the prescribed time,

14-11    and properly labeled with name, strength, and expiration date of

14-12    the drug.

14-13                (51) [(50)]  "Written protocol" means a physician's

14-14    order, standing medical order, standing delegation order, or other

14-15    order or protocol as defined by rule of the Texas State Board of

14-16    Medical Examiners under the Medical Practice Act (Article 4495b,

14-17    Vernon's Texas Civil Statutes).

14-18          SECTION 3.  Subsections (b) and (c), Section 29, Texas

14-19    Pharmacy Act (Article 4542a-1, Vernon's Texas Civil Statutes) are

14-20    amended to read as follows:

14-21          (b)  Each pharmacy shall apply for a license in one or more

14-22    of the following classifications:

14-23                (1)  Class A;

14-24                (2)  Class B;

14-25                (3)  Class C;

 15-1                (4)  Class D; [or]

 15-2                (5)  Class E;

 15-3                (6)  Class L; or

 15-4                (7)  Class S.

 15-5          (c)  Each pharmacy shall be under the supervision of a

 15-6    pharmacist as follows:

 15-7                (1)  a Class A pharmacy shall be under the continuous

 15-8    on-site supervision of a pharmacist during the time it is open for

 15-9    pharmacy services;

15-10                (2)  a Class B pharmacy shall be under the continuous

15-11    on-site supervision of a pharmacist during the time it is open for

15-12    pharmacy services;

15-13                (3)  a Class C pharmacy shall be under the continuous

15-14    on-site supervision of a pharmacist in institutions with more than

15-15    100 beds during the time it is open for pharmacy services; in

15-16    institutions with 100 beds or fewer, the services of a pharmacist

15-17    shall be required on a part-time or consulting basis according to

15-18    the needs of the institution;

15-19                (4)  a Class D pharmacy shall be under the continuous

15-20    supervision of a pharmacist whose services shall be required

15-21    according to the needs of the pharmacy; [and]

15-22                (5)  a Class E pharmacy shall be under the continuous

15-23    on-site supervision of a pharmacist and shall designate one

15-24    pharmacist licensed to practice pharmacy by the regulatory or

15-25    licensing agency of the state in which the Class E pharmacy is

 16-1    located to serve as the pharmacist-in-charge of the Class E

 16-2    pharmacy license;

 16-3                (6)  a Class L pharmacy shall be under the continuous

 16-4    on-site supervision of a pharmacist during the time it is open for

 16-5    pharmacy services; and

 16-6                (7)  a Class S pharmacy shall be under the continuous

 16-7    supervision of a pharmacist whose services shall be required

 16-8    according to the needs of the pharmacy.

 16-9          SECTION 4.  This Act takes effect September 1, 1997.

16-10          SECTION 5.  The importance of this legislation and the

16-11    crowded condition of the calendars in both houses create an

16-12    emergency and an imperative public necessity that the

16-13    constitutional rule requiring bills to be read on three several

16-14    days in each house be suspended, and this rule is hereby suspended.

16-15                         COMMITTEE AMENDMENT NO. 1

16-16          Amend SB 1774 as follows:

16-17          On page 4, line 1 delete the words "a supply of" and replace

16-18    them with the words "an emergency medication kit".

16-19          On page 4, line 6, following the words "the facility" add the

16-20    following language:

16-21    . . . the board shall adopt rules to specify the quantities and

16-22    types of controlled substances and dangerous drugs included in

16-23    these emergency medication kits.

16-24                                                               Berlanga