AN ACT
 1-1     relating to the licensing and regulation of pharmacists and
 1-2     pharmacies.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subdivision (7), Section 5, Texas Pharmacy Act
 1-5     (Article 4542a-1, Vernon's Texas Civil Statutes), is amended to
 1-6     read as follows:
 1-7                 (7)  "Class C pharmacy license" or "institutional
 1-8     pharmacy license" means a license issued to a pharmacy located in:
 1-9                       (A)  a hospital or other in-patient facility that
1-10     is licensed under Chapter 241 or 577, Health and Safety Code;
1-11                       (B)  [, or Chapter 6, Texas Mental Health Code
1-12     (Article 5547-1 et seq., Vernon's Texas Civil Statutes), to] a
1-13     hospice in-patient facility that is licensed under Chapter 142,
1-14     Health and Safety Code;
1-15                       (C)  an ambulatory surgical center licensed under
1-16     Chapter 243, Health and Safety Code; or
1-17                       (D)  [, or to a pharmacy located in] a hospital
1-18     maintained or operated by the state.
1-19           SECTION 2.  Subsections (a) and (b), Section 17, Texas
1-20     Pharmacy Act (Article 4542a-1, Vernon's Texas Civil Statutes), are
1-21     amended to read as follows:
1-22           (a)  The board is responsible for the regulation of the
1-23     practice of pharmacy in this state, including the following:
1-24                 (1)  the licensing by examination or by reciprocity of
 2-1     applicants who are qualified to engage in the practice of pharmacy
 2-2     and the licensing of pharmacies under this Act;
 2-3                 (2)  the renewal of licenses to engage in the practice
 2-4     of pharmacy and licenses to operate pharmacies;
 2-5                 (3)  the determination and issuance of standards for
 2-6     recognition and approval of degree requirements of colleges of
 2-7     pharmacy whose graduates shall be eligible for licensing in this
 2-8     state and the specification and enforcement of requirements for
 2-9     practical training, including internship;
2-10                 (4)  the determination and issuance of standards for
2-11     recognition and approval of pharmacist certification programs,
2-12     including a requirement that a pharmacist may not use the
2-13     designation "board certified" unless the pharmacist has
2-14     successfully completed a certification program that meets board
2-15     standards;
2-16                 (5)  the enforcement of those provisions of this Act
2-17     relating to the conduct or competence of pharmacists practicing in
2-18     this state and the conduct of pharmacies operating in this state
2-19     and the suspension, revocation, fining, reprimanding, cancellation,
2-20     or restriction of licenses to engage in the practice of pharmacy or
2-21     to operate a pharmacy;
2-22                 (6) [(5)]  the specifications of conditions under which
2-23     a pharmacist may administer medications, including immunizations
2-24     and vaccinations, which at a minimum shall include the following:
2-25                       (A)  a licensed health care provider authorized
2-26     to administer the medication is not reasonably available to
 3-1     administer the medication;
 3-2                       (B)  failure to administer the medication, other
 3-3     than an immunization or vaccination, might result in a significant
 3-4     delay or interruption of a critical phase of drug therapy;
 3-5                       (C)  the pharmacist possesses the necessary
 3-6     skill, education, and certification to administer the medication as
 3-7     specified by the board;
 3-8                       (D)  the pharmacist notifies the appropriate
 3-9     licensed health care provider responsible for the patient's care
3-10     within a reasonable time that the medication was administered;
3-11                       (E)  a pharmacist may not administer medications
3-12     to a patient where the patient resides, except in a licensed
3-13     nursing home or hospital;
3-14                       (F)  the pharmacist administers immunizations or
3-15     vaccinations under a physician's written protocol and meets the
3-16     standards established by the board;
3-17                       (G)  the authority of the pharmacist to
3-18     administer medications may not be delegated;
3-19                       (H)  nothing in this subdivision shall be
3-20     construed to prohibit a pharmacist from preparing or manipulating
3-21     biotechnological agents or devices; and
3-22                       (I)  nothing in this subdivision shall be
3-23     construed as prohibiting a pharmacist from performing an act
3-24     delegated by a physician in accordance with the provisions of
3-25     Subsection (d), Section 3.06, Medical Practice Act (Article 4495b,
3-26     Vernon's Texas Civil Statutes), and the pharmacist performing such
 4-1     a delegated medical act shall be considered to be performing a
 4-2     medical act and not as engaged in the practice of pharmacy;
 4-3                 (7) [(6)]  the regulation of the training,
 4-4     qualifications, and employment of:
 4-5                       (A)  pharmacist-interns; and
 4-6                       (B)  pharmacy technicians; and
 4-7                 (8) [(7)]  the enforcement of this Act and any rules
 4-8     adopted under this Act.
 4-9           (b)  The board has the following responsibilities relating to
4-10     the practice of pharmacy and to prescription drugs and devices used
4-11     in this state in the diagnosis, mitigation, and treatment or
4-12     prevention of injury, illness, and disease:
4-13                 (1)  regulation of the delivery or distribution of
4-14     prescription drugs and devices, including the right to seize, after
4-15     notice and hearing, any prescription drugs or devices posing a
4-16     hazard to the public health and welfare, but the board may not
4-17     regulate:
4-18                       (A)  manufacturers' representatives or employees
4-19     acting in the normal course of business;
4-20                       (B)  persons engaged in the wholesale drug
4-21     business and registered with the commissioner of health as provided
4-22     by Chapter 431, Health and Safety Code; or
4-23                       (C)  employees of persons engaged in the
4-24     wholesale drug business and registered with the commissioner of
4-25     health as provided by Chapter 431, Health and Safety Code, if the
4-26     employees are acting in the normal course of business;
 5-1                 (2)  specification of minimum standards for
 5-2     professional environment, technical equipment, and security in the
 5-3     prescription dispensing area;
 5-4                 (3)  specification of minimum standards for drug
 5-5     storage, maintenance of prescription drug records, and procedures
 5-6     for the delivery, dispensing in a suitable container appropriately
 5-7     labeled, providing of prescription drugs or devices, monitoring of
 5-8     drug therapy, and counseling of patients on proper use of
 5-9     prescription drugs and devices within the practice of pharmacy;
5-10                 (4)  adoption of rules regulating a prescription drug
5-11     order or medication order transmitted by electronic means; and
5-12                 (5)  [annual] registration of balances used for the
5-13     compounding of drugs in pharmacies licensed in this state and the
5-14     periodic inspection of such balances to verify accuracy.
5-15           SECTION 3.  Subsection (o), Section 17, Texas Pharmacy Act
5-16     (Article 4542a-1, Vernon's Texas Civil Statutes), is amended to
5-17     read as follows:
5-18           (o)  The board:
5-19                 (1)  shall establish rules for the use of pharmacy
5-20     technicians and the duties of those technicians in pharmacies
5-21     licensed by the board, provided that those technicians are
5-22     responsible to and directly supervised by a pharmacist licensed by
5-23     the board;
5-24                 (2)  [provided however that the board] may not adopt
5-25     rules or regulations establishing ratios of pharmacists to pharmacy
5-26     technicians in Class C pharmacies; [and]
 6-1                 (3)  shall [(2) may] determine and issue standards for
 6-2     recognition and approval of training programs for pharmacy
 6-3     technicians; and
 6-4                 (4)  shall maintain a list of board-approved training
 6-5     programs that meet the standards under Subdivision (3) of this
 6-6     subsection.
 6-7           SECTION 4.  The Texas Pharmacy Act (Article 4542a-1, Vernon's
 6-8     Texas Civil Statutes) is amended by adding Sections 20A and 20B to
 6-9     read as follows:
6-10           Sec. 20A.  QUALIFICATIONS AND SUPERVISION OF PHARMACY
6-11     TECHNICIANS; RULES.  (a)  In establishing rules under Section 17(o)
6-12     of this Act, the board shall require that a pharmacy technician:
6-13                 (1)  have a high school diploma or a high school
6-14     equivalency certificate or be working to achieve an equivalent
6-15     diploma or certificate; and
6-16                 (2)  have passed a board-approved pharmacy technician
6-17     certification examination.
6-18           (b)  The board may allow a technician to petition the board
6-19     for a special exemption from the technician certification
6-20     requirement if the technician:
6-21                 (1)  is in a county with a population of less than
6-22     50,000; or
6-23                 (2)  on September 1, 2001, has been employed as a
6-24     pharmacy technician in this state for at least 10 years and the
6-25     technician's employer approves the petition.
6-26           (c)  The board shall adopt rules that permit a pharmacy
 7-1     technician to perform only nonjudgmental technical duties under the
 7-2     direct supervision of a pharmacist.
 7-3           Sec. 20B.  PHARMACY TECHNICIAN REGISTRATION REQUIRED.  (a)  A
 7-4     pharmacy technician must register with the board annually or
 7-5     biennially, as determined by board rule, on a form prescribed by
 7-6     the board.
 7-7           (b)  The board may refuse to issue or renew a registration or
 7-8     may suspend or revoke any registration issued by the board if the
 7-9     board determines that the applicant or registrant has:
7-10                 (1)  violated this Act or a rule adopted under this
7-11     Act;
7-12                 (2)  engaged in gross immorality as that term is
7-13     defined by the rules of the board;
7-14                 (3)  engaged in any fraud, deceit, or
7-15     misrepresentation, as those terms are defined by the rules of the
7-16     board, in seeking a registration to act as a pharmacy technician;
7-17                 (4)  been convicted of a misdemeanor involving moral
7-18     turpitude or a felony;
7-19                 (5)  a drug or alcohol dependency;
7-20                 (6)  violated the Texas Controlled Substances Act
7-21     (Chapter 481, Health and Safety Code) or Texas Dangerous Drug Act
7-22     (Chapter 483, Health and Safety Code) or rules relating to those
7-23     acts, Sections 485.031-485.035, Health and Safety Code, or a rule
7-24     adopted under Section 485.011, Health and Safety Code;
7-25                 (7)  violated the pharmacy or drug laws or rules of
7-26     this state, another state, or the United States; or
 8-1                 (8)  had a registration as a pharmacy technician issued
 8-2     by another state revoked, surrendered, or suspended for conduct
 8-3     substantially equivalent to conduct described in Subdivisions (1)
 8-4     through (6) of this subsection.
 8-5           (c)  A certified copy of the record of a state taking action
 8-6     described by Subsection (b)(8) of this section is conclusive
 8-7     evidence of the action taken by the state.
 8-8           (d)  The board may adopt a system in which the registrations
 8-9     of pharmacy technicians expire on various dates during the year.
8-10           (e)  The board may adopt fees as necessary for the
8-11     registration of pharmacy technicians.
8-12           SECTION 5.  Subsection (d), Section 24A, Texas Pharmacy Act
8-13     (Article 4542a-1, Vernon's Texas Civil Statutes), is amended to
8-14     read as follows:
8-15           (d)  An applicant who satisfies the continuing education
8-16     requirement through completion of approved programs must present
8-17     evidence satisfactory to the board of completion of not fewer than
8-18     24 [at least 12] hours of continuing education during the preceding
8-19     24 months of the applicant's license period.  [A licensee who
8-20     completes more than 12 hours during the preceding license period
8-21     may carry forward a maximum of 12 hours for the next license
8-22     period.]
8-23           SECTION 6.  Subsection (g), Section 27A, Texas Pharmacy Act
8-24     (Article 4542a-1, Vernon's Texas Civil Statutes), is amended to
8-25     read as follows:
8-26           (g)  The board may add a surcharge of not more than $10 for
 9-1     each 12 months in a license period to a license or license renewal
 9-2     fee authorized under this Act to fund the program to aid impaired
 9-3     pharmacists or pharmacy students.
 9-4           SECTION 7.  Subsection (b), Section 28, Texas Pharmacy Act
 9-5     (Article 4542a-1, Vernon's Texas Civil Statutes), is amended to
 9-6     read as follows:
 9-7           (b)  A person whose pharmacy license, [or] license to
 9-8     practice pharmacy, or pharmacy technician registration in this
 9-9     state has been canceled, revoked, or restricted under this Act,
9-10     whether voluntarily or by action of the board, may, after 12 months
9-11     from the effective date of the cancellation, revocation, or
9-12     restriction, petition the board for reinstatement or removal of the
9-13     restriction of the license.  The petition shall be in writing and
9-14     in the form prescribed by the board.  A person petitioning for
9-15     reinstatement has the burden of proof.  On investigation and review
9-16     of the petition, the board may in its discretion grant or deny the
9-17     petition or it may modify its original finding to reflect any
9-18     circumstances that have changed sufficiently to warrant the
9-19     modification.  If such petition is denied by the board, a
9-20     subsequent petition may not be considered by the board until 12
9-21     months from the date of denial of the previous petition.  The board
9-22     in its discretion may require such person to pass an examination or
9-23     examinations for reentry into the practice of pharmacy.
9-24           SECTION 8.  Subsections (a) and (e), Section 29, Texas
9-25     Pharmacy Act (Article 4542a-1, Vernon's Texas Civil Statutes), are
9-26     amended to read as follows:
 10-1          (a)  A pharmacy shall be licensed by the board.  A pharmacy
 10-2    license under this Act must be renewed annually or biennially as
 10-3    determined by the board.
 10-4          (e)  The board shall have the discretion to determine under
 10-5    which classifications a pharmacy applicant may be licensed.  With
 10-6    respect to Class C pharmacies, the board may:
 10-7                (1)  establish rules for the use of pharmacy
 10-8    technicians and the duties of those technicians in Class C
 10-9    pharmacies licensed by the board, provided that these technicians
10-10    are responsible to and directly supervised by a pharmacist licensed
10-11    by the board; provided, however, the board may not adopt any rule
10-12    setting ratios with respect to pharmacists and pharmacy technicians
10-13    or limiting the number of pharmacy technicians that may be
10-14    utilized; and
10-15                (2)  issue a license to a pharmacy on certification by
10-16    the appropriate agency that the facility in which the pharmacy is
10-17    located has substantially completed the requirements for licensing.
10-18          SECTION 9.  Subsections (d) and (f), Section 31, Texas
10-19    Pharmacy Act (Article 4542a-1, Vernon's Texas Civil Statutes), are
10-20    amended to read as follows:
10-21          (d)  The board shall remove the name from the register of
10-22    licensed pharmacies and suspend the license of a pharmacy that does
10-23    not file a completed application and pay the renewal fee before the
10-24    license expiration date [June 1 of each year].
10-25          (f)  The board may adopt a system in which licenses to
10-26    operate a pharmacy expire on various dates during the year or every
 11-1    other year, as appropriate.
 11-2          SECTION 10.  The Texas Pharmacy Act (Article 4542a-1,
 11-3    Vernon's Texas Civil Statutes) is amended by adding Section 42 to
 11-4    read as follows:
 11-5          Sec. 42.  DUTY OF PROFESSIONAL LIABILITY INSURER TO REPORT.
 11-6    (a)  Every insurer or other entity providing pharmacist's
 11-7    professional liability insurance, pharmacy technician professional
 11-8    and supplemental liability insurance, or druggist's professional
 11-9    liability insurance covering a pharmacist, pharmacy technician, or
11-10    pharmacy license holder in this state shall submit to the board the
11-11    information described in Subsections (b) and (c) of this section at
11-12    the time prescribed.  The information shall be provided with
11-13    respect to a notice of claim letter or complaint filed against an
11-14    insured in a court, if the notice or complaint seeks damages
11-15    relating to the insured's conduct in providing or failing to
11-16    provide appropriate service within the scope of pharmaceutical care
11-17    or services, and with respect to settlement of a claim or lawsuit
11-18    made on behalf of the insured.  If a pharmacist, pharmacy
11-19    technician, or a pharmacy licensed in this state does not carry or
11-20    is not covered by pharmacist's professional liability insurance,
11-21    pharmacy technician professional and supplemental liability
11-22    insurance, or druggist's professional liability insurance and is
11-23    insured by a nonadmitted carrier or other entity providing pharmacy
11-24    professional liability insurance that does not report under this
11-25    Act, the duty to report information under Subsections (b) and (c)
11-26    of this section is the responsibility of the pharmacist, pharmacy
 12-1    technician, or pharmacy license holder.
 12-2          (b)  The following information must be furnished to the board
 12-3    not later than the 30th day after receipt by the insurer of the
 12-4    notice of claim letter or complaint from the insured:
 12-5                (1)  the name of the insured and the insured's Texas
 12-6    pharmacy technician registration number or pharmacist or pharmacy
 12-7    license number;
 12-8                (2)  the policy number; and
 12-9                (3)  a copy of the notice of claim letter or complaint.
12-10          (c)  The board shall, in consultation with the Texas
12-11    Department of Insurance, adopt rules for reporting additional
12-12    information as the board may require.  Other claim reports required
12-13    under state and federal law shall be considered in determining the
12-14    information to be reported, the form of the report, and frequency
12-15    of reporting under the rules.  Additional information that the
12-16    board may require may include:
12-17                (1)  the date of any judgment, dismissal, or
12-18    settlement; and
12-19                (2)  whether an appeal has been taken and by which
12-20    party.
12-21          (d)  An insurer reporting under this section, its agents or
12-22    employees, or the board or its employees or representatives are not
12-23    liable for damages in a suit brought by any person or entity for
12-24    reporting as required by this section or for any other action taken
12-25    under this section.
12-26          (e)  Information submitted to the board under this section
 13-1    and the fact that the information has been submitted to the board
 13-2    may not be:
 13-3                (1)  offered in evidence or used in any manner in the
 13-4    trial of a suit described in this section; or
 13-5                (2)  used in any manner to determine the eligibility or
 13-6    credentialing of a pharmacy to participate in a health insurance
 13-7    plan defined by the Insurance Code.
 13-8          (f)  Information submitted under this section is confidential
 13-9    and is not subject to disclosure under Chapter 552, Government
13-10    Code.  The board shall adopt rules to ensure the confidentiality of
13-11    information submitted under this section.
13-12          (g)  Except as otherwise provided in this subsection, a
13-13    report received by the board under this section is not a complaint
13-14    for which a board investigation is required.  The board shall
13-15    review the information relating to a pharmacist, pharmacy
13-16    technician, or pharmacy license holder against whom at least three
13-17    professional liability claims have been reported within a five-year
13-18    period in the same manner as if a complaint against the pharmacist,
13-19    pharmacy technician, or pharmacy license holder had been made under
13-20    Section 17A of this Act.
13-21          (h)  The Texas Department of Insurance may impose on any
13-22    insurer subject to this Act sanctions authorized by Section 7,
13-23    Article 1.10, Insurance Code, if the insurer fails to report
13-24    information as required by this section.
13-25          SECTION 11.  (a)  Except as provided by Subsection (d) of
13-26    this section, this Act takes effect September 1, 1999.
 14-1          (b)  The change in law made by this Act to Subsection (d),
 14-2    Section 24A, Subsection (g), Section 27A, and Subsection (d),
 14-3    Section 31, Texas Pharmacy Act (Article 4542a-1, Vernon's Texas
 14-4    Civil Statutes), applies only to an application for issuance of a
 14-5    license or for renewal of a license that is filed on or after the
 14-6    effective date of this Act.  An application for issuance or renewal
 14-7    of a license filed before the effective date of this Act is
 14-8    governed by the law in effect on the date the application was
 14-9    filed, and the former law is continued in effect for that purpose.
14-10          (c)  The change in law made by this Act to Subsection (b),
14-11    Section 28, Texas Pharmacy Act (Article 4542a-1, Vernon's Texas
14-12    Civil Statutes), applies only to a petition for reinstatement of a
14-13    license filed on or after the effective date of this Act.  A
14-14    petition for reinstatement filed before the effective date of this
14-15    Act is governed by the law in effect on the date the petition was
14-16    filed, and the former law is continued in effect for that purpose.
14-17          (d)  Section 20A, Texas Pharmacy Act (Article 4542a-1,
14-18    Vernon's Texas Civil Statutes), as added by this Act, takes effect
14-19    January 1, 2001.  Section 20B, Texas Pharmacy Act (Article 4542a-1,
14-20    Vernon's Texas Civil Statutes), as added by this Act, takes effect
14-21    September 1, 2001.
14-22          SECTION 12.  The importance of this legislation and the
14-23    crowded condition of the calendars in both houses create an
14-24    emergency and an imperative public necessity that the
14-25    constitutional rule requiring bills to be read on three several
14-26    days in each house be suspended, and this rule is hereby suspended.
                                                                S.B. No. 730
         ________________________________   ________________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 730 passed the Senate on
         March 25, 1999, by the following vote:  Yeas 31, Nays 0;
         May 17, 1999, Senate refused to concur in House amendments and
         requested appointment of Conference Committee; May 19, 1999, House
         granted request of the Senate; May 27, 1999, Senate adopted
         Conference Committee Report by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 730 passed the House, with
         amendments, on May 11, 1999, by a non-record vote; May 19, 1999,
         House granted request of the Senate for appointment of Conference
         Committee; May 27, 1999, House adopted Conference Committee Report
         by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
         Approved:
         ________________________________
                      Date
         ________________________________
                    Governor