1-1     By:  Lucio                                            S.B. No. 1774

 1-2           (In the Senate - Filed March 14, 1997; March 24, 1997, read

 1-3     first time and referred to Committee on Health and Human Services;

 1-4     May 5, 1997, reported adversely, with favorable Committee

 1-5     Substitute by the following vote:  Yeas 9, Nays 1; May 5, 1997,

 1-6     sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1774                By:  Moncrief

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to the creation of a long-term care pharmacy and a

1-11     long-term care satellite pharmacy license.

1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-13           SECTION 1.  Section 242.161, Health and Safety Code, is

1-14     amended to read as follows:

1-15           Sec. 242.161.  EMERGENCY MEDICATION KIT.  (a)  A pharmacy [An

1-16     institution licensed under this chapter] is entitled to maintain a

1-17     supply of controlled substances and dangerous drugs for a

1-18     resident's immediate therapeutic needs, provided the supply of

1-19     drugs is maintained in compliance with the Texas Pharmacy Act

1-20     (Article 4542a-1, Vernon's Texas Civil Statutes) [in an emergency

1-21     medication kit for a resident's emergency medication needs].

1-22           (b)  [The controlled substances shall be labeled in

1-23     accordance with all applicable state and federal food and drug

1-24     laws, including Chapter 481 (Texas Controlled Substances Act).]

1-25           [(c)  The board shall adopt rules governing the amount, type,

1-26     and procedure for use of the controlled substances in the emergency

1-27     medication kit.  The storage of the controlled substances in the

1-28     kit is under the supervision of the consultant pharmacist.]

1-29           [(d)]  The administration of the controlled substances and

1-30     dangerous drugs authorized in this section [in the emergency

1-31     medication kit] shall comply with all applicable laws.

1-32           SECTION 2.  Section 5, Texas Pharmacy Act, (Article 4542a-1,

1-33     Vernon's Texas Civil Statutes), is amended to read as follows:

1-34           Sec. 5.  DEFINITIONS.  In this Act, unless the context of its

1-35     use clearly indicates otherwise:

1-36                 (1)  "A.C.P.E." means the American Council on

1-37     Pharmaceutical Education.

1-38                 (2)  "Administer" means the direct application of a

1-39     prescription drug by injection, inhalation, ingestion, or any other

1-40     means to the body of a patient by:

1-41                       (A)  a practitioner, an authorized agent under

1-42     his supervision, or other person authorized by law; or

1-43                       (B)  the patient at the direction of a

1-44     practitioner.

1-45                 (3)  "Administrative Procedure Act" means Chapter 2001,

1-46     Government Code [the Administrative Procedure and Texas Register

1-47     Act, as amended (Article 6252-13a, Vernon's Texas Civil Statutes)].

1-48                 (4)  "Board" means the Texas State Board of Pharmacy.

1-49                 (5)  "Class A pharmacy license" or "community pharmacy

1-50     license" means a license issued to a pharmacy dispensing drugs or

1-51     devices to the general public pursuant to a prescription drug

1-52     order.

1-53                 (6)  "Class B pharmacy license" or "nuclear pharmacy

1-54     license" means a license issued to a pharmacy dispensing or

1-55     providing radioactive drugs or devices for administration to an

1-56     ultimate user.

1-57                 (7)  "Class C pharmacy license" or "institutional

1-58     pharmacy license" means a license issued to a pharmacy located in a

1-59     hospital or other in-patient facility that is licensed under

1-60     Chapter 241 or 577, Health and Safety Code, [or Chapter 6, Texas

1-61     Mental Health Code (Article 5547-1 et seq., Vernon's Texas Civil

1-62     Statutes),] to a hospice in-patient facility that is licensed under

1-63     Chapter 142, Health and Safety Code, or to a pharmacy located in a

1-64     hospital maintained or operated by the state.

 2-1                 (8)  "Class D pharmacy license" or "clinic pharmacy

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

 2-3     type of drugs or devices pursuant to a prescription drug order.

 2-4                 (9)  "Class E pharmacy license" or "nonresident

 2-5     pharmacy license" means a license issued under this Act to a

 2-6     pharmacy located in a state of the United States other than this

 2-7     state whose primary business is to dispense a prescription drug or

 2-8     device under a prescription drug order and to deliver the drug or

 2-9     device to a patient, including a patient in this state, by the

2-10     United States mail, a common carrier, or a delivery service.

2-11                 (10)  "Class L pharmacy license" or "long-term care

2-12     pharmacy license" means a license issued to a pharmacy that

2-13     dispenses prescription drugs or devices under a prescription drug

2-14     order to patients who are residents of a long-term care facility

2-15     licensed under Chapter 242, Health and Safety Code.

2-16                 (11)  "Class S pharmacy license" or "long-term care

2-17     satellite pharmacy license" means a license issued to a holder of a

2-18     Class A, Class C, or Class L pharmacy license under this Act to

2-19     maintain a supply of controlled substances and dangerous drugs at a

2-20     long-term care facility licensed under Chapter 242, Health and

2-21     Safety Code.  The controlled substances and dangerous drugs

2-22     maintained at the long-term care facility shall only be those

2-23     required to meet the immediate therapeutic needs of the patients of

2-24     the facility.

2-25                 (12)  "College of pharmacy" means a school, university,

2-26     or college of pharmacy that satisfies the accreditation standards

2-27     of A.C.P.E. as adopted by the board; or that has degree

2-28     requirements which meet the standards of accreditation set by the

2-29     board.

2-30                 (13) [(12)]  "Compounding" means the preparation,

2-31     mixing, assembling, packaging, or labeling of a drug or device:

2-32                       (A)  as the result of a practitioner's

2-33     prescription drug order or initiative based on the

2-34     practitioner-patient-pharmacist relationship in the course of

2-35     professional practice;

2-36                       (B)  in anticipation of prescription drug orders

2-37     based on routine, regularly observed prescribing patterns; or

2-38                       (C)  for the purpose of or as an incident to

2-39     research, teaching, or chemical analysis and not for sale or

2-40     dispensing.

2-41                 (14) [(13)]  "Confidential record" means any

2-42     health-related record maintained by a pharmacy or pharmacist such

2-43     as a patient medication record, prescription drug order, or

2-44     medication order.

2-45                 (15) [(14)]  "Controlled substance" means a drug,

2-46     immediate precursor, or other substance listed in Schedules I-V or

2-47     Penalty Groups 1-4 of Chapter 481, Health and Safety Code, or a

2-48     drug, immediate precursor, or other substance included in Schedule

2-49     I, II, III, IV, or V of the Federal Comprehensive Drug Abuse

2-50     Prevention and Control Act of 1970 (21 U.S.C. Section 801 et seq.).

2-51                 (16) [(15)]  "Controlled Substances Act" means Chapter

2-52     481, Health and Safety Code, or the Federal Comprehensive Drug

2-53     Abuse Prevention and Control Act of 1970 (21 U.S.C. Section 801 et

2-54     seq.).

2-55                 (17) [(16)]  "Dangerous drug" means any drug or device

2-56     that is not included in Penalty Groups 1-4 of the Controlled

2-57     Substances Act and that is unsafe for self-medication or any drug

2-58     or device that bears or is required to bear the legend:

2-59                       (A)  "Caution:  federal law prohibits dispensing

2-60     without prescription"; or

2-61                       (B)  "Caution:  federal law restricts this drug

2-62     to use by or on the order of a licensed veterinarian."

2-63                 (18) [(17)]  "Dangerous Drug Act" means Chapter 483,

2-64     Health and Safety Code.

2-65                 (19) [(18)]  "Deliver" or "delivery" means the actual,

2-66     constructive, or attempted transfer of a prescription drug or

2-67     device or controlled substance from one person to another, whether

2-68     or not for a consideration.

2-69                 (20) [(19)]  "Designated agent" means:

 3-1                       (A)  a licensed nurse, physician assistant,

 3-2     pharmacist, or other individual designated by a practitioner, and

 3-3     for whom the practitioner assumes legal responsibility, who

 3-4     communicates prescription drug orders to a pharmacist;

 3-5                       (B)  a licensed nurse, physician assistant, or

 3-6     pharmacist employed in a health care facility to whom the

 3-7     practitioner communicates a prescription drug order; or

 3-8                       (C)  a registered nurse or physician assistant

 3-9     authorized by a practitioner to carry out a prescription drug order

3-10     for dangerous drugs under Subdivision (5) or (6), Subsection (d),

3-11     Section 3.06, Medical Practice Act (Article 4495b, Vernon's Texas

3-12     Civil Statutes).

3-13                 (21) [(20)]  "Device" means an instrument, apparatus,

3-14     implement, machine, contrivance, implant, in vitro reagent, or

3-15     other similar or related article, including any component part or

3-16     accessory, that is required under federal or state law to be

3-17     ordered or prescribed by a practitioner.

3-18                 (22) [(21)]  "Dispense" means preparing, packaging,

3-19     compounding, or labeling for delivery a prescription drug or device

3-20     in the course of professional practice to an ultimate user or his

3-21     agent by or pursuant to the lawful order of a practitioner.

3-22                 (23) [(22)]  "Distribute" means the delivery of a

3-23     prescription drug or device other than by administering or

3-24     dispensing.

3-25                 (24) [(23)]  "Drug" means:

3-26                       (A)  a substance recognized as drugs in the

3-27     current official United States Pharmacopoeia, official National

3-28     Formulary, official Homeopathic Pharmacopoeia, or other drug

3-29     compendium or any supplement to any of them;

3-30                       (B)  a substance intended for use in the

3-31     diagnosis, cure, mitigation, treatment, or prevention of disease in

3-32     man or other animals;

3-33                       (C)  a substance, other than food, intended to

3-34     affect the structure or any function of the body of man or other

3-35     animals;

3-36                       (D)  a substance intended for use as a component

3-37     of any articles specified in Paragraph (A), (B), or (C) of this

3-38     subdivision;

3-39                       (E)  a dangerous drug; or

3-40                       (F)  a controlled substance.

3-41                 (25) [(24)]  "Drug regimen review" includes the

3-42     following activities:

3-43                       (A)  evaluation of prescription drug or

3-44     medication orders and patient medication records for:

3-45                             (i)  known allergies;

3-46                             (ii)  rational therapy-contraindications;

3-47                             (iii)  reasonable dose and route of

3-48     administration; and

3-49                             (iv)  reasonable directions for use;

3-50                       (B)  evaluation of prescription drug or

3-51     medication orders and patient medication records for duplication of

3-52     therapy;

3-53                       (C)  evaluation of prescription drug or

3-54     medication orders and patient medication records for:

3-55                             (i)  drug-drug interactions;

3-56                             (ii)  drug-food interactions;

3-57                             (iii)  drug-disease interactions;

3-58                             (iv)  adverse drug reactions; and

3-59                       (D)  evaluation of prescription drug and

3-60     medication orders and patient medication records for proper

3-61     utilization, including overutilization or underutilization.

3-62                 (26) [(25)]  "Internship" means a practical experience

3-63     program that is approved by the board.

3-64                 (27) [(26)]  "Label" means written, printed, or graphic

3-65     matter on the immediate container of a drug or device.

3-66                 (28) [(27)]  "Labeling" means the process of affixing a

3-67     label including all information required by federal and state law

3-68     or regulation to any drug or device container.  The term does not

3-69     include the labeling by a manufacturer, packer, or distributor of a

 4-1     nonprescription drug or commercially packaged prescription drug or

 4-2     device, or unit dose packaging.

 4-3                 (29) [(28)]  "Manufacturing" means the production,

 4-4     preparation, propagation, conversion, or processing of a drug or

 4-5     device, either directly or indirectly, by extraction from

 4-6     substances of natural origin or independently by means of chemical

 4-7     or biological synthesis and includes any packaging or repackaging

 4-8     of the substances or labeling or relabeling of the container and

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

4-10     Manufacturing also includes the preparation and promotion of

4-11     commercially available products from bulk compounds for resale by

4-12     pharmacies, practitioners, or other persons but does not include

4-13     compounding.

4-14                 (30) [(29)]  "Medication order" means an order from a

4-15     practitioner or a practitioner's designated agent for

4-16     administration of a drug or device.

4-17                 (31) [(30)]  "Nonprescription drug" means a nonnarcotic

4-18     drug or device that may be sold without a prescription and that is

4-19     labeled and packaged in compliance with applicable state or federal

4-20     law.

4-21                 (32) [(31)]  "Patient counseling" means the

4-22     communication by the pharmacist of information, as specified in the

4-23     rules of the board, to the patient or caregiver, in order to

4-24     improve therapy by ensuring proper use of drugs and devices.

4-25                 (33) [(32)]  "Person" means an individual, corporation,

4-26     government or governmental subdivision or agency, business trust,

4-27     estate, trust, partnership, association, or any other legal entity.

4-28                 (34) [(33)]  "Pharmaceutical care" is the provision of

4-29     drug therapy and other pharmaceutical services defined in the rules

4-30     of the board and intended to assist in the cure or prevention of a

4-31     disease, elimination or reduction of a patient's symptoms, or

4-32     arresting or slowing of a disease process.

4-33                 (35) [(34)]  "Pharmacist" means a person licensed by

4-34     the board to practice pharmacy.

4-35                 (36) [(35)]  "Pharmacist-in-charge" means the

4-36     pharmacist designated on a pharmacy license as the pharmacist who

4-37     has the authority or responsibility for a pharmacy's compliance

4-38     with laws and rules pertaining to the practice of pharmacy.

4-39                 (37) [(36)]  "Pharmacist-intern" means an undergraduate

4-40     student enrolled in the professional sequence of a college of

4-41     pharmacy approved by the board and participating in a school-based,

4-42     board-approved internship program or a graduate of a college of

4-43     pharmacy who is participating in a board-approved internship.

4-44                 (38) [(37)]  "Pharmacy" means a facility licensed by

4-45     the board pursuant to Section 29 of this Act.

4-46                 (39) [(38)]  "Practice of pharmacy" means:

4-47                       (A)  provision of those acts or services

4-48     necessary to provide pharmaceutical care;

4-49                       (B)  interpretation and evaluation of

4-50     prescription drug orders or medication orders;

4-51                       (C)  participation in drug and device selection

4-52     as authorized by law, drug administration, drug regimen review, or

4-53     drug or drug-related research;

4-54                       (D)  provision of patient counseling;

4-55                       (E)  responsibility for:

4-56                             (i)  dispensing of prescription drug orders

4-57     or distribution of medication orders;

4-58                             (ii)  compounding and labeling of drugs and

4-59     devices, except labeling by a manufacturer, repackager, or

4-60     distributor of nonprescription drugs and commercially packaged

4-61     prescription drugs and devices;

4-62                             (iii)  proper and safe storage of drugs and

4-63     devices; or

4-64                             (iv)  maintenance of proper records for

4-65     drugs and devices; and

4-66                       (F)  performance of a specific act of drug

4-67     therapy management for a patient delegated to a pharmacist by a

4-68     written protocol from a physician licensed in this state in

4-69     compliance with the Medical Practice Act (Article 4495b, Vernon's

 5-1     Texas Civil Statutes).

 5-2                 (40) [(39)]  "Practitioner" means:

 5-3                       (A)  a physician, dentist, podiatrist,

 5-4     veterinarian, or other person licensed or registered to prescribe,

 5-5     distribute, administer, or dispense a prescription drug or device

 5-6     in the course of professional practice in this state;

 5-7                       (B)  a person licensed by another state in a

 5-8     health field in which, under Texas law, licensees in this state may

 5-9     legally prescribe dangerous drugs or a person practicing in another

5-10     state and licensed by another state as a physician, dentist,

5-11     veterinarian, or podiatrist, having a current Federal Drug

5-12     Enforcement Administration registration number, and who may legally

5-13     prescribe Schedule II, III, IV, or V controlled substances in such

5-14     other state; or

5-15                       (C)  a person licensed in the Dominion of Canada

5-16     or the United Mexican States in a health field in which, under the

5-17     laws of this state, a licensee may legally prescribe dangerous

5-18     drugs.  "Practitioner" does not include a person licensed under

5-19     this Act.

5-20                 (41) [(40)]  "Preceptor" means a pharmacist in good

5-21     standing licensed in this state to practice pharmacy and certified

5-22     by the board to supervise and be responsible for the activities and

5-23     functions of a pharmacist-intern in the internship program.

5-24                 (42) [(41)]  "Prescription drug" means:

5-25                       (A)  a substance for which federal or state law

5-26     requires a prescription before it may be legally dispensed to the

5-27     public;

5-28                       (B)  a drug or device that under federal law is

5-29     required, prior to being dispensed or delivered, to be labeled with

5-30     either of the following statements:

5-31                             (i)  "Caution:  federal law prohibits

5-32     dispensing without prescription"; or

5-33                             (ii)  "Caution:  federal law restricts this

5-34     drug to use by or on the order of a licensed veterinarian"; or

5-35                       (C)  a drug or device that is required by any

5-36     applicable federal or state law or regulation to be dispensed on

5-37     prescription only or is restricted to use by a practitioner only.

5-38                 (43) [(42)]  "Prescription drug order" means:

5-39                       (A)  an order from a practitioner or a

5-40     practitioner's designated agent to a pharmacist for a drug or

5-41     device to be dispensed; or

5-42                       (B)  an order pursuant to Subdivision (5) or (6),

5-43     Subsection (d), Section 3.06, Medical Practice Act (Article 4495b,

5-44     Vernon's Texas Civil Statutes).

5-45                 (44) [(43)]  "Prospective drug use review" means a

5-46     review of the patient's drug therapy and prescription drug order or

5-47     medication order, as defined in the rules of the board, prior to

5-48     dispensing or distributing the drug.

5-49                 (45) [(44)]  "Provide" means to supply one or more unit

5-50     doses of a nonprescription drug or dangerous drug to a patient.

5-51                 (46) [(45)]  "Radioactive drug" means a drug that

5-52     exhibits spontaneous disintegration of unstable nuclei with the

5-53     emission of nuclear particles or photons, including any

5-54     nonradioactive reagent kit or nuclide generator that is intended to

5-55     be used in the preparation of any such substance.

5-56                 (47) [(46)]  "Substitution" means the dispensing of a

5-57     drug or a brand of drug other than that which is ordered or

5-58     prescribed.

5-59                 (48) [(47)]  "Supportive personnel" means those

5-60     individuals utilized in pharmacies whose responsibility it shall be

5-61     to provide technical services that do not require professional

5-62     judgment concerned with the preparation and distribution of drugs

5-63     under the direct supervision of and responsible to a pharmacist.

5-64                 (49) [(48)]  "Ultimate user" means a person who has

5-65     obtained and possesses a prescription drug or device for the

5-66     person's own use or for the use of a member of the person's

5-67     household or for administering to an animal owned by the person or

5-68     by a member of the person's household.

5-69                 (50) [(49)]  "Unit dose packaging" means the ordered

 6-1     amount of drug in a dosage form ready for administration to a

 6-2     particular patient, by the prescribed route at the prescribed time,

 6-3     and properly labeled with name, strength, and expiration date of

 6-4     the drug.

 6-5                 (51) [(50)]  "Written protocol" means a physician's

 6-6     order, standing medical order, standing delegation order, or other

 6-7     order or protocol as defined by rule of the Texas State Board of

 6-8     Medical Examiners under the Medical Practice Act (Article 4495b,

 6-9     Vernon's Texas Civil Statutes).

6-10           SECTION 3.  Subsections (b) and (c), Section 29, Texas

6-11     Pharmacy Act (Article 4542a-1, Vernon's Texas Civil Statutes) are

6-12     amended to read as follows:

6-13           (b)  Each pharmacy shall apply for a license in one or more

6-14     of the following classifications:

6-15                 (1)  Class A;

6-16                 (2)  Class B;

6-17                 (3)  Class C;

6-18                 (4)  Class D; [or]

6-19                 (5)  Class E;

6-20                 (6)  Class L; or

6-21                 (7)  Class S.

6-22           (c)  Each pharmacy shall be under the supervision of a

6-23     pharmacist as follows:

6-24                 (1)  a Class A pharmacy shall be under the continuous

6-25     on-site supervision of a pharmacist during the time it is open for

6-26     pharmacy services;

6-27                 (2)  a Class B pharmacy shall be under the continuous

6-28     on-site supervision of a pharmacist during the time it is open for

6-29     pharmacy services;

6-30                 (3)  a Class C pharmacy shall be under the continuous

6-31     on-site supervision of a pharmacist in institutions with more than

6-32     100 beds during the time it is open for pharmacy services; in

6-33     institutions with 100 beds or fewer, the services of a pharmacist

6-34     shall be required on a part-time or consulting basis according to

6-35     the needs of the institution;

6-36                 (4)  a Class D pharmacy shall be under the continuous

6-37     supervision of a pharmacist whose services shall be required

6-38     according to the needs of the pharmacy; [and]

6-39                 (5)  a Class E pharmacy shall be under the continuous

6-40     on-site supervision of a pharmacist and shall designate one

6-41     pharmacist licensed to practice pharmacy by the regulatory or

6-42     licensing agency of the state in which the Class E pharmacy is

6-43     located to serve as the pharmacist-in-charge of the Class E

6-44     pharmacy license;

6-45                 (6)  a Class L pharmacy shall be under the continuous

6-46     on-site supervision of a pharmacist during the time it is open for

6-47     pharmacy services; and

6-48                 (7)  a Class S pharmacy shall be under the continuous

6-49     supervision of a pharmacist whose services shall be required

6-50     according to the needs of the pharmacy.

6-51           SECTION 4.  This Act takes effect September 1, 1997.

6-52           SECTION 5.  The importance of this legislation and the

6-53     crowded condition of the calendars in both houses create an

6-54     emergency and an imperative public necessity that the

6-55     constitutional rule requiring bills to be read on three several

6-56     days in each house be suspended, and this rule is hereby suspended.

6-57                                  * * * * *