HBA-MPM S.B. 931 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 931
By: Madla
Higher Education
5/12/1999
Engrossed



BACKGROUND AND PURPOSE 

The shortage of pharmacists in Texas is due to several factors, including
the following: 

_an aging population which requires more prescription drugs;
_the introduction of drug options which keep patients out of hospitals and
nursing homes; 
_a shift in pharmacy education from a five to six-year program;
_an increase in the number of Texans covered by insurance programs offering
prescription benefits; and 
_pharmacy graduates who leave Texas to participate in out-of-state
residency programs. 

Currently, there are limited federal grants available to fund pharmacy
residency programs, however, additional grants alone may not solve the
pharmacist shortage, as they only fund programs in hospital settings.  The
effect of the shortage is especially severe in rural areas, many of which
do not have hospitals. 

S.B. 931 establishes the Roberta High Memorial Pharmacy Residency Program,
which provides funding by state stipend to aid pharmacy residencies in
community settings and creates more residencies in hospital settings.  This
bill also provides that the cost of each residency will be shared by the
state, the primary teaching pharmacy, and the college of pharmacy, with the
state's share not to exceed $10,000 per residency position.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS
 
SECTION 1.  Amends Chapter 61, Education Code, by adding Subchapter T, as
follows: 

SUBCHAPTER T.  ROBERTA HIGH MEMORIAL 
PHARMACY RESIDENCY PROGRAM

Sec. 61.851.  DEFINITIONS.  Defines, for the purpose of this subchapter,
the following terms:  "college of pharmacy," "community pharmacy,"
"compensation," "institutional pharmacy," "nuclear pharmacy," "pharmacy
residency program," "primary teaching pharmacy," "residency preceptor," and
"resident pharmacist." 

Sec.  61.852.  COMPENSATION OF RESIDENT PHARMACIST.  Requires a college of
pharmacy (college) to compensate each resident pharmacist (resident) being
educated, trained, developed, and prepared for a career in pharmacy while
undergoing education, training, development, and preparation at or under
the direction and supervision of the college. 

Sec. 61.853.  NUMBER OF AVAILABLE RESIDENT PHARMACIST POSITIONS. Prohibits
the total number of compensated first-year residents from exceeding the
total number of persons in the preceding year's combined graduating classes
of all colleges of  pharmacy in each year.  Provides that at least 50
percent of the combined total number of resident positions must be in
community pharmacy practice. 

Sec. 61.854.  PREFERENCE TO APPLICANT FOR PRACTICE IN MEDICALLY UNDERSERVED
AREAS.  Requires each college to give priority consideration to an
applicant for a resident position who demonstrates a willingness to
practice pharmacy in medically underserved areas of this state, as defined
by the Texas Department of Health. 

Sec. 61.855.  DURATION OF PHARMACIST RESIDENCY.  Prohibits a person from
holding a resident position for more than two years, or for a period longer
than that usually required for a resident to complete a graduate pharmacy
education program approved by the Texas State Board of Pharmacy (board) for
the specialty in which the resident seeks certification. 

Sec. 61.856.  PROGRAM FUNDING.  Authorizes the legislature to appropriate
revenue to the board to fund the pharmacy residency program.  Prohibits
funds appropriated and distributed under this subchapter from being
transferred or diverted from the pharmacy residency program.  Requires the
comptroller of public accounts to issue a warrant to the college of
pharmacy or other entity designated by the board to receive funds under
this subchapter.  Prohibits general revenue funds from being used to fund
pharmacy residencies other than in the manner prescribed by this subchapter
after August 31, 2001. 

Sec. 61.857.  STATE SUPPORT OF RESIDENT PHARMACIST COMPENSATION.  (a)
Authorizes the board, to supplement compensation of residents, to provide
grants to colleges in amounts that do not exceed $10,000 per fiscal year
for each resident position the board approves and that is filled by the
applicable college for that year. 

(b)  Authorizes a college of pharmacy to receive funds under this section
for a resident position in any year only if the college and primary
teaching pharmacy each contribute at least $10,000 toward the compensation
of the resident for that year. 

(c)  Requires a college to reduce proportionately the compensation paid to
a resident who does not perform in that capacity during an entire fiscal
year to cover only the part of the year during which the person performed
duties as a resident. 

(d)  Requires a college, if a person is compensated for performing duties
of a resident by an agency or institution of the federal government or by
any other agency or institution, other than a primary teaching pharmacy, to
reduce the compensation that would otherwise be paid the person by an
amount equal to that received by the person from the agency or institution. 

(e)  Provides that if the college receives from an agency or institution of
the federal government or from any other agency or institution, other than
the primary teaching pharmacy, compensation for a person's performance of
the person's duties as a resident to or for the benefit of the agency or
institution, the compensation that may be paid to the resident from funds
awarded for that position is reduced by the amount received from the other
agency or institution. 

(f)  Specifies that a resident must enroll for at least nine semester
credit hours (hours) each fall and spring semester and for at least six
hours each summer term in graduate pharmacy education experiential courses
to qualify for supplemental compensation provided under this section.
Exempts the resident from fees required for enrollment, other than tuition. 

Sec. 61.858.  PLACEMENT OF RESIDENT PHARMACISTS IF FULL FUNDING NOT
AVAILABLE.  (a)  Authorizes a college to assign and place for education and
training a resident who cannot be supported adequately with available funds
in a primary teaching pharmacy with which the college has a resident
affiliation agreement if the college determines that it does not have
sufficient available funds from legislative appropriations and other
sources to adequately support the full number of residents the college
considers  necessary to carry out its purposes. 

(b) Requires a resident to receive compensation primarily from a primary
teaching pharmacy during the period for which the resident is assigned and
placed in a primary teaching pharmacy under this section. 

(c)  Provides that a resident pharmacist affiliation agreement between the
college of pharmacy and the primary teaching pharmacy must describe the
exact method and manner of compensating the resident. 

Sec. 61.859.  ADDITIONAL FUNDING TO SUPPORT GRADUATE PHARMACY EDUCATION
PROGRAMS.  (a)  Requires the board to administer a program to support
graduate pharmacy education programs in this state consistent with the
state's needs for graduate pharmacy education and the training of residents
in appropriate fields and specialties. 

(b)  Authorizes the board, from available funds, to make grants or formula
distributions to a college or other entity to achieve certain goals. 

(c)  Provides that in order to be eligible for a grant or distribution
under this section a college or other entity must incur the costs of
faculty education or supervision in a graduate pharmacy education program
or the costs of compensating a resident in the program.  Requires the board
to take those incurred costs into account when making grants or formula
distributions under this section. 

(d)  Provides that the program is funded by appropriations, gifts, grants,
and donations made to support the program, and by any other funds the board
obtains, including federal funds. 

(e)  Authorizes an amount granted or distributed to a college or other
entity under the program to be used only to cover expenses of training
residents participating in the particular program or activity for which the
grant or distribution is made in accordance with conditions imposed by the
board.  Prohibits this amount from being spent for the general support of
the college or other entity. 

Sec. 61.860.  ADVISORY COMMITTEE.  (a)  Requires the board to establish an
advisory committee (committee) to advise the board regarding the
development and administration of the pharmacy residency program, including
evaluating requests for grants and establishing formulas for distribution
of funds under the program. 

(b)  Sets forth the composition of the committee.

(c)  Provides that of the members of the committee who are pharmacists in
private practice, two must be in community pharmacy practice and two must
be active in hospital pharmacy practice. 

(d)  Specifies that the appointed members of the committee serve staggered
three-year terms.  Requires the Texas Board of Medical Examiners to appoint
certain initial members to serve certain terms, so that one-third of the
appointed members' terms expire each year, as nearly as practicable. 

(e)  Requires the committee to elect one member as presiding officer for a
one-year term. 

(f)  Requires the committee to meet at least once yearly and as often as
requested by the board or called into meeting by the presiding officer. 

(g)  Prohibits a committee member from receiving compensation for committee
service, but authorizes the member to receive reimbursement for travel to
official meetings according to policies established by the board. 
 
Sec. 61.861.  DUTIES OF ADVISORY COMMITTEE.  Requires the committee to
perform certain duties. 

Sec. 61.862.  APPLICATION BY SCHOOL OF PHARMACY FOR FUNDING.  Provides that
a college must include in an application for funds under this subchapter
certain information. 

Sec. 61.863.  FUNDING OF FACULTY PRECEPTOR POSITIONS (a)  Authorizes a
college to apply and receive a grant under this section to support
full-time faculty members who are residency preceptors who supervise
accredited pharmacy residencies. 

(b)   Requires the committee to recommend to the board an allocation of
residency preceptor positions that are to receive funds under this section. 

(c)  Provides that an allocation of funds under this section must take into
consideration certain factors. 

(d)  Requires the board to continue to grant funds to support that position
for a period not to exceed one additional calendar year once funds are
granted to support a residency preceptor position affiliated with a
college.  Requires the college, after that time, to provide an amount equal
to the annualized amount of the grant in its operating budget to maintain
the level of compensation for the position for two years after the grant
period has ended. 

(e)  Prohibits the board from using more than 10 percent of the total
amount appropriated to the pharmacy residency program under this subchapter
to fund residency preceptor positions. 

(f)  Authorizes the board to solicit, receive, and spend grants, gifts, and
donations from public and private sources for purposes of this section. 

SECTION 2.  Amends Section 17(a), Article 4542a-1, V.T.C.S. (Texas Pharmacy
Act), to provide that the board is responsible for the regulation of the
practice of pharmacy in this state, including the determination and
issuance of standards for recognizing and approving a pharmacy residency
program for purposes of Subchapter T, Chapter 61, Education Code, among
other responsibilities. Makes conforming changes. 

SECTION 3.  Requires the comptroller to transfer $850,000 from the State
Board of Pharmacy fund account to the undedicated portion of the general
revenue fund on the effective date of this Act. Authorizes the legislature
to appropriate these funds only for the pharmacy residency program
established by this Act. 

SECTION 4.  Effective date: September 1, 1999.

SECTION 4.  Emergency clause.