By:  Lucio                                            S.B. No. 1774

         Line and page numbers may not match official copy.

         Bill not drafted by TLC or Senate E&E.

                                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 of the Health and Safety Code is

 1-5     amended as follows:

 1-6           (A)  A pharmacy is entitled to maintain a supply of

 1-7     controlled substances and dangerous drugs for a resident's

 1-8     immediate therapeutic needs, provided the supply of drugs is

 1-9     maintained in compliance with the Texas Pharmacy Act (Texas Civil

1-10     Statutes, Article 4542a-1).

1-11           (B)  The administration of the controlled substances and

1-12     dangerous drugs authorized in this section shall comply with all

1-13     applicable laws.

1-14           SECTION 2.  Section 5 of the Texas Pharmacy Act (Texas Civil

1-15     Statutes, Article 4542a-1) is amended as follows:

1-16           In this Act, unless the context of its use clearly indicated

1-17     otherwise:

1-18                 (1)  "A.C.P.E." means the American Council on

1-19     Pharmaceutical Education.

1-20                 (2)  "Administer" means the direct application of a

1-21     prescription drug by injection, inhalation, ingestion, or any other

 2-1     means to the body of a patient by:

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

 2-3     his supervision, or other preauthorized by law; or

 2-4                       (B)  the patient at the direction of a

 2-5     practitioner.

 2-6                 (3)  "Administrative Procedure Act" means the

 2-7     Administrative Procedure and Texas Register Act, as amended

 2-8     (Article 6252-13a, Vernon's Texas Civil Statutes).

 2-9                 (4)  "Board" means the Texas State Board of Pharmacy.

2-10                 (5)  "Class A pharmacy license" or "community pharmacy

2-11     license" means a license issued to a pharmacy dispensing drugs or

2-12     devices to the general public pursuant to a prescription drug

2-13     order.

2-14                 (6)  "Class B pharmacy license" or "nuclear pharmacy

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

2-16     providing radioactive drugs or devices for administration to an

2-17     ultimate user.

2-18                 (7)  "Class C pharmacy license" or "institutional

2-19     pharmacy license" means a license issued to a pharmacy located in a

2-20     hospital or other in-patient facility that is licensed under

2-21     Chapter 241, Health and Safety Code, or Chapter 6, Texas Mental

2-22     Health Code (Article 5547-1 et seq., Vernon's Texas Civil

2-23     Statutes), to a hospice in-patient facility that is licensed under

2-24     Chapter 142, Health and Safety Code, or to a pharmacy located in a

2-25     hospital maintained or operated by the state.

 3-1                 (8)  "Class D pharmacy license" or "clinic pharmacy

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

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

 3-4                 (9)  "Class E pharmacy license" or "nonresident

 3-5     pharmacy license" means a license issued under this Act to a

 3-6     pharmacy located in a state of the United States other than this

 3-7     state whose primary business is to dispense a prescription drug or

 3-8     device under a prescription drug order and to deliver the drug or

 3-9     device to a patient, including a patient in this state, by the

3-10     United States mail, a common carrier, or a delivery service.

3-11                 (10)  "Class L pharmacy license" or "long-term care

3-12     pharmacy license" means a license issued to a pharmacy that

3-13     dispenses prescription drugs or devices under a prescription drug

3-14     order to patients who are residents of a long-term care faculty

3-15     licensed under Chapter 242.

3-16                 (11)  "Class S pharmacy license" or "long-term care

3-17     satellite pharmacy license" Means a license issued to a holder of a

3-18     Class A, Class C, or Class L pharmacy license under this Act to

3-19     maintain a supply of dangerous drugs and controlled substances at a

3-20     long-term care facility licensed under Chapter 242, Health and

3-21     Safety Code.  The controlled substances and dangerous drugs

3-22     maintained at the long-term care facility shall only be those

3-23     required to meet the immediate therapeutic needs of the patients of

3-24     the faculty.

3-25                 (12)  "College of pharmacy" means a school, university,

 4-1     or college of pharmacy that satisfies the accreditation standards

 4-2     of A.C.P.E. as adopted by the board; or that has degree

 4-3     requirements which meet the standards of accreditation set by the

 4-4     board.

 4-5                 (13)  "Compounding" means the preparation, mixing,

 4-6     assembling, packaging, or labeling of a drug or device:

 4-7                       (A)  as the result of a practitioner's

 4-8     prescription drug order or initiative based on the

 4-9     practitioner-patient-pharmacist relationship in the course of

4-10     professional practice;

4-11                       (B)  in anticipation of prescription drug orders

4-12     based on routine, regularly observed prescribing patterns; or

4-13                       (C)  for the purpose of or as an incident to

4-14     research, teaching, or chemical analysis and not for sale or

4-15     dispensing.

4-16                 (14)  "Confidential record" means any health-related

4-17     record maintained by a pharmacy or pharmacist such as a patient

4-18     medication record, prescription drug order, or medication order.

4-19                 (15)  "Controlled substance" means a drug, immediate

4-20     precursor, or other substance listed in Schedules I-V or Penalty

4-21     Groups 1-4 of Chapter 481, Health and Safety Code, or a drug,

4-22     immediate precursor, or other substance included in Schedule I, II,

4-23     III, IV, or V of the Federal Comprehensive Drug Abuse Prevention

4-24     and Control Act of 1970 (21 U.S.C. Section 801 et seq.).

4-25                 (16)  "Controlled Substances Act" means Chapter 481,

 5-1     Health and Safety Code, or the Federal Comprehensive Drug Abuse

 5-2     Prevention and Control Act of 1970 (21 U.S.C. Section 801 et seq.).

 5-3                 (17)  "Dangerous drug" means any drug or device that is

 5-4     not included in Penalty Groups 1-4 of the Controlled Substances Act

 5-5     and that is unsafe for self-medication or any drug or device that

 5-6     bears or is required to bear the legend:

 5-7                       (A)  "Caution:  federal law prohibits dispensing

 5-8     without prescription"; or

 5-9                       (B)  "Caution:  federal law restricts this drug

5-10     to use by or on the order of a licensed veterinarian."

5-11                 (18)  "Dangerous Drug Act" means Chapter 483, Health

5-12     and Safety Code.

5-13                 (19)  "Deliver" or "delivery" means the actual,

5-14     constructive, or attempted transfer of a prescription drug or

5-15     device or controlled substance from one person to another, whether

5-16     or not for a consideration.

5-17                 (20)  "Designated agent" means:

5-18                       (A)  a licensed nurse, physician assistant,

5-19     pharmacist, or other individual designated by a practitioner, and

5-20     for whom the practitioner assumes legal responsibility, who

5-21     communicates prescription drug orders to a pharmacist;

5-22                       (B)  a licensed nurse, physician assistant, or

5-23     pharmacist employed in a health care facility to whom the

5-24     practitioner communicates a prescription drug order; or

5-25                       (C)  a registered nurse or physician assistant

 6-1     authorized by a practitioner to carry out a prescription drug order

 6-2     for dangerous drugs under Subdivision (5) or (6), Subsection (d),

 6-3     Section 3.06, Medical Practice Act (Article 4495b, Vernon's Texas

 6-4     Civil Statutes).

 6-5                 (21)  "Device" means an instrument, apparatus,

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

 6-7     other similar or related article, including any component part or

 6-8     accessory, that is required under federal or state law to be

 6-9     ordered or prescribed by a practitioner.

6-10                 (22)  "Dispense" means preparing, packaging,

6-11     compounding, or labeling for delivery a prescription drug or device

6-12     in the course of professional practice to an ultimate user or his

6-13     agent by or pursuant to the lawful order of a practitioner.

6-14                 (23)  "Distribute" means the delivery of a prescription

6-15     drug or device other than by administering or dispensing.

6-16                 (24)  "Drug" means:

6-17                       (A)  a substance recognized as drugs in the

6-18     current official United States Pharmacopoeia, official National

6-19     Formulary, official Homeopathic Pharmacopoeia, or other drug

6-20     compendium or any supplement to any of them;

6-21                       (B)  a substance intended for use in the

6-22     diagnosis, cure, mitigation, treatment, or prevention of disease in

6-23     man or other animals;

6-24                       (C)  a substance, other than food, intended to

6-25     affect the structure or any function of the body of man or other

 7-1     animals;

 7-2                       (D)  a substance intended for use as a component

 7-3     of any articles specified in Paragraph (A), (B), or (C) of this

 7-4     subdivision;

 7-5                       (E)  a dangerous drug; or

 7-6                       (F)  a controlled substance.

 7-7                 (25)  "Drug regimen review" includes the following

 7-8     activities:

 7-9                       (A)  evaluation of prescription drug or

7-10     medication orders and patient medication records for:

7-11                             (i)  known allergies;

7-12                             (ii)  rational therapy-contraindications;

7-13                             (iii)  reasonable dose and route of

7-14     administration; and

7-15                             (iv)  reasonable directions for use;

7-16                       (B)  evaluation of prescription drug or

7-17     medication orders and patient medication records for duplication of

7-18     therapy;

7-19                       (C)  evaluation of prescription drug or

7-20     medication orders and patient medication records for:

7-21                             (i)  drug-drug interactions;

7-22                             (ii)  drug-food interactions;

7-23                             (iii)  drug-disease interactions;

7-24                             (iv)  adverse drug reactions; and

7-25                       (D)  evaluation of prescription drug and

 8-1     medication orders and patient medication records for proper

 8-2     utilization, including overutilization or underutilization.

 8-3                 (26)  "Internship" means a practical experience program

 8-4     that is approved by the board.

 8-5                 (27)  "Label" means written, printed, or graphic matter

 8-6     on the immediate container of a drug or device.

 8-7                 (28)  "Labeling" means the process of affixing a label

 8-8     including all information required by federal and state law or

 8-9     regulation to any drug or device container.  The term does not

8-10     include the labeling by a manufacturer, packer, or distributor of a

8-11     nonprescription drug or commercially packaged prescription drug or

8-12     device, or unit dose packaging.

8-13                 (29)  "Manufacturing" means the production,

8-14     preparation, propagation, conversion, or processing of a drug or

8-15     device, either directly or indirectly, by extraction from

8-16     substances of natural origin or independently by means of chemical

8-17     or biological synthesis and includes any packaging or repackaging

8-18     of the substances or labeling or relabeling of the container and

8-19     the promotion and marketing of such drugs or devices.

8-20     Manufacturing also includes the preparation and promotion of

8-21     commercially available products from bulk compounds for resale by

8-22     pharmacies, practitioners, or other persons but does not include

8-23     compounding.

8-24                 (30)  "Medication order" means an order from a

8-25     practitioner or a practitioner's designated agent for

 9-1     administration of a drug or device.

 9-2                 (31)  "Nonprescription drug" means a nonnarcotic drug

 9-3     or device that may be sold without a prescription and that is

 9-4     labeled and packaged in compliance with applicable state or federal

 9-5     law.

 9-6                 (32)  "Patient counseling" means the communication by

 9-7     the pharmacist of information, as specified in the rules of the

 9-8     board, to the patient or caregiver, in order to improve therapy by

 9-9     ensuring proper use of drugs and devices.

9-10                 (33)  "Person" means an individual, corporation,

9-11     government or governmental subdivision or agency, business trust,

9-12     estate, trust, partnership, association, or any other legal entity.

9-13                 (34)  "Pharmaceutical care" is the provision of drug

9-14     therapy and other pharmaceutical services defined in the rules of

9-15     the board and intended to assist in the cure or prevention of a

9-16     disease, elimination or reduction of a patient's symptoms, or

9-17     arresting or slowing of a disease process.

9-18                 (35)  "Pharmacist" means a person licensed by the board

9-19     to practice pharmacy.

9-20                 (36)  "Pharmacist-in-charge" means the pharmacist

9-21     designated on a pharmacy license as the pharmacist who has the

9-22     authority or responsibility for a pharmacy's compliance with laws

9-23     and rules pertaining to the practice of pharmacy.

9-24                 (37)  "Pharmacist-intern" means an undergraduate

9-25     student enrolled in the professional sequence of a college of

 10-1    pharmacy approved by the board and participating in a school-based,

 10-2    board-approved internship program or a graduate of a college of

 10-3    pharmacy who is participating in a board-approved internship.

 10-4                (38)  "Pharmacy" means a facility licensed by the board

 10-5    pursuant to Section 29 of this Act.

 10-6                (39)  "Practice of pharmacy" means:

 10-7                      (A)  provision of those acts or services

 10-8    necessary to provide pharmaceutical care;

 10-9                      (B)  interpretation and evaluation of

10-10    prescription drug orders or medication orders;

10-11                      (C)  participation in drug and device selection

10-12    as authorized by law, drug administration, drug regimen review, or

10-13    drug or drug-related research;

10-14                      (D)  provision of patient counseling;

10-15                      (E)  responsibility for:

10-16                            (i)  dispensing of prescription drug orders

10-17    or distribution of medication orders;

10-18                            (ii)  compounding and labeling of drugs and

10-19    devices, except labeling by a manufacturer, repackager, or

10-20    distributor of nonprescription drugs and commercially packaged

10-21    prescription drugs and devices;

10-22                            (iii)  proper and safe storage of drugs and

10-23    devices; or

10-24                            (iv)  maintenance of proper records for

10-25    drugs and devices; and

 11-1                      (F)  performance of a specific act of drug

 11-2    therapy management for a patient delegated to a pharmacist by a

 11-3    written protocol from a physician licensed in this state in

 11-4    compliance with the Medical Practice Act (Article 4495b, Vernon's

 11-5    Texas Civil Statutes).

 11-6                (40)  "Practitioner" means:

 11-7                      (A)  a physician, dentist, podiatrist,

 11-8    veterinarian, or other person licensed or registered to prescribe,

 11-9    distribute, administer, or dispense a prescription drug or device

11-10    in the course of professional practice in this state;

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

11-12    health field in which, under Texas law, licensees in this state may

11-13    legally prescribe dangerous drugs or a person practicing in another

11-14    state and licensed by another state as a physician, dentist,

11-15    veterinarian, or podiatrist, having a current Federal Drug

11-16    Enforcement Administration registration number, and who may legally

11-17    prescribe Schedule II, III, IV, or V controlled substances in such

11-18    other state; or

11-19                      (C)  a person licensed in the Dominion of Canada

11-20    or the United Mexican States in a health field in which, under the

11-21    laws of this state, a licensee may legally prescribe dangerous

11-22    drugs.  "Practitioner" does not include a person licensed under

11-23    this Act.

11-24                (41)  "Preceptor" means a pharmacist in good standing

11-25    licensed in this state to practice pharmacy and certified by the

 12-1    board to supervise and be responsible for the activities and

 12-2    functions of a pharmacist-intern in the internship program.

 12-3                (42)  "Prescription drug" means:

 12-4                      (A)  a substance for which federal or state law

 12-5    requires a prescription before it may be legally dispensed to the

 12-6    public;

 12-7                      (B)  a drug or device that under federal law is

 12-8    required, prior to being dispensed or delivered, to be labeled with

 12-9    either of the following statements:

12-10                            (i)  "Caution:  federal law prohibits

12-11    dispensing without prescription"; or

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

12-13    drug to use by or on the order of a licensed veterinarian"; or

12-14                      (C)  a drug or device that is required by any

12-15    applicable federal or state law or regulation to be dispensed on

12-16    prescription only or is restricted to use by a practitioner only.

12-17                (43)  "Prescription drug order" means:

12-18                      (A)  an order from a practitioner or a

12-19    practitioner's designated agent to a pharmacist for a drug or

12-20    device to be dispensed; or

12-21                      (B)  an order pursuant to Subdivision (5) or (6),

12-22    Subsection (d), Section 3.06, Medical Practice Act (Article 4495b,

12-23    Vernon's Texas Civil Statutes).

12-24                (44)  "Prospective drug use review" means a review of

12-25    the patient's drug therapy and prescription drug order or

 13-1    medication order, as defined in the rules of the board, prior to

 13-2    dispensing or distributing the drug.

 13-3                (45)  "Provide" means to supply one or more unit doses

 13-4    of a nonprescription drug or dangerous drug to a patient.

 13-5                (46)  "Radioactive drug" means a drug that exhibits

 13-6    spontaneous disintegration of unstable nuclei with the emission of

 13-7    nuclear particles or photons, including any nonradioactive reagent

 13-8    kit or nuclide generator that is intended to be used in the

 13-9    preparation of any such substance.

13-10                (47)  "Substitution" means the dispensing of a drug or

13-11    a brand of drug other than that which is ordered or prescribed.

13-12                (48)  "Supportive personnel" means those individuals

13-13    utilized in pharmacies whose responsibility it shall be to provide

13-14    technical services that do not require professional judgment

13-15    concerned with the preparation and distribution of drugs under the

13-16    direct supervision of and responsible to a pharmacist.

13-17                (49)  "Ultimate user" means a person who has obtained

13-18    and possesses a prescription drug or device for the person's own

13-19    use or for the use of a member of the person's household or for

13-20    administering to an animal owned by the person or by a member of

13-21    the person's household.

13-22                (50)  "Unit dose packaging" means the ordered amount of

13-23    drug in a dosage form ready for administration to a particular

13-24    patient, by the prescribed route at the prescribed time, and

13-25    properly labeled with name, strength, and expiration date of the

 14-1    drug.

 14-2                (51)  "Written protocol" means a physician's order,

 14-3    standing medical order, standing delegation order, or other order

 14-4    or protocol as defined by rule of the Texas State Board of Medical

 14-5    Examiners under the Medical Practice Act (Article 4495b, Vernon's

 14-6    Texas Civil Statutes).

 14-7          SECTION 2.  Subsections (b) and (c), Section 29 of the Texas

 14-8    Pharmacy Act (Article 454a-1) are amended as follows:

 14-9          (b)  Each pharmacy shall apply for a license in one or more

14-10    of the following classifications:

14-11                (1)  Class A;

14-12                (2)  Class B;

14-13                (3)  Class C;

14-14                (4)  Class D;

14-15                (5)  Class E;

14-16                (6)  Class L; or

14-17                (7)  Class S.

14-18          (c)  Each pharmacy shall be under the supervision of a

14-19    pharmacist as follows:

14-20                (1)  a Class A pharmacy shall be under the continuous

14-21    on-site supervision of a pharmacist during the time it is open for

14-22    pharmacy services;

14-23                (2)  a Class B pharmacy shall be under the continuous

14-24    on-site supervision of a pharmacist during the time it is open for

14-25    pharmacy services;

 15-1                (3)  a Class C pharmacy shall be under the continuous

 15-2    on-site supervision of a pharmacist in institutions with more than

 15-3    100 beds during the time it is open for pharmacy services; in

 15-4    institutions with 100 beds or fewer, the services of a pharmacist

 15-5    shall be required on a part-time or consulting basis according to

 15-6    the needs of the institution;

 15-7                (4)  a Class D pharmacy shall be under the continuous

 15-8    supervision of a pharmacist whose services shall be required

 15-9    according to the needs of the pharmacy; and

15-10                (5)  a Class E pharmacy shall be under the continuous

15-11    on-site supervision of a pharmacist and shall designate one

15-12    pharmacist licensed to practice pharmacy by the regulatory or

15-13    licensing agency of the state in which the Class E pharmacy is

15-14    located to serve as the pharmacist-in-charge of the Class E

15-15    pharmacy license.

15-16                (6)  a Class 1 pharmacy shall be under the continuous

15-17    on-site supervision of a pharmacist during the time it is open for

15-18    pharmacy services; and

15-19                (7)  a Class S 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.

15-22          SECTION 3.  This Act takes effect September 1, 1997.

15-23          SECTION 4.  The importance of this legislation and the

15-24    crowded condition of the calendars in both houses create an

15-25    emergency and an imperative public necessity that the

 16-1    constitutional rule requiring bills to be read on three several

 16-2    days in each house be suspended, and this rule is hereby suspended.