By Madla                                               S.B. No. 931
         76R2987 KEL-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the support of graduate pharmacy education and resident
 1-3     pharmacists.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Chapter 61, Education Code, is amended by adding
 1-6     Subchapter T to read as follows:
 1-7                    SUBCHAPTER T.  ROBERTA HIGH MEMORIAL
 1-8                         PHARMACY RESIDENCY PROGRAM
 1-9           Sec. 61.851.  DEFINITIONS.  In this subchapter:
1-10                 (1)  "Community pharmacy" means a pharmacy that holds a
1-11     Class A pharmacy license issued by the Texas State Board of
1-12     Pharmacy.
1-13                 (2)  "Compensation" includes a stipend, a payment for
1-14     services rendered, and a fringe benefit.
1-15                 (3)  "Faculty preceptor" means a licensed pharmacist
1-16     who:
1-17                       (A)  is affiliated with a school of pharmacy;
1-18                       (B)  meets the qualifications established by the
1-19     board to teach resident pharmacists; and
1-20                       (C)  has been designated as a pharmacy faculty
1-21     preceptor by the Texas State Board of Pharmacy.
1-22                 (4)  "Institutional pharmacy" means a pharmacy that
1-23     holds a Class C pharmacy license issued by the Texas State Board of
1-24     Pharmacy.
 2-1                 (5)  "Nuclear pharmacy" means a pharmacy that holds a
 2-2     Class B pharmacy license issued by the Texas State Board of
 2-3     Pharmacy.
 2-4                 (6)  "Pharmacy residency program" means a residency
 2-5     program approved as an internship program by the Texas State Board
 2-6     of Pharmacy.
 2-7                 (7)  "Primary teaching pharmacy" means a pharmacy that
 2-8     holds a permit issued by the Texas State Board of Pharmacy at which
 2-9     a school of pharmacy educates and trains both resident pharmacists
2-10     and undergraduate pharmacy students, pursuant to a resident
2-11     pharmacist affiliation agreement between the pharmacy and the
2-12     school.
2-13                 (8)  "Resident pharmacist" means a person who:
2-14                       (A)  has received a bachelor of science degree in
2-15     pharmacy or a doctor of pharmacy degree from an educational
2-16     institution accredited by an organization recognized by the board
2-17     as accrediting schools of pharmacy;
2-18                       (B)  is licensed to practice pharmacy by the
2-19     Texas State Board of Pharmacy; and
2-20                       (C)  is appointed to a resident pharmacist
2-21     position by a school of pharmacy.
2-22                 (9)  "School of pharmacy" means a school of pharmacy in
2-23     this state that is accredited by an organization recognized by the
2-24     board as  accrediting schools of pharmacy.
2-25           Sec. 61.852.  COMPENSATION OF RESIDENT PHARMACIST.  A school
2-26     of pharmacy shall compensate each resident pharmacist being
2-27     educated, trained, developed, and prepared for a career in pharmacy
 3-1     while the person is undergoing education, training, development,
 3-2     and preparation at or under the direction and supervision of the
 3-3     school.
 3-4           Sec.   61.853.  NUMBER OF AVAILABLE RESIDENT PHARMACIST
 3-5     POSITIONS.  (a)  In each year, the total number of compensated
 3-6     first-year resident pharmacists may not exceed 50 percent of the
 3-7     total number of persons in the preceding year's combined graduating
 3-8     classes of all schools of pharmacy.
 3-9           (b)  At least 50 percent of the combined total number of
3-10     resident pharmacist positions must be in community pharmacy
3-11     practice.
3-12           Sec. 61.854.  PREFERENCE TO APPLICANT FOR PRACTICE IN
3-13     MEDICALLY UNDERSERVED AREAS.  Each school shall give priority
3-14     consideration to an applicant for a resident pharmacist position
3-15     who demonstrates a willingness to practice pharmacy in medically
3-16     underserved areas of this state, as defined by the Texas Department
3-17     of Health.
3-18           Sec. 61.855.  DURATION OF PHARMACIST RESIDENCY.  A person may
3-19     not hold a resident pharmacist position for more than two years, or
3-20     for a period longer than the period usually required for a resident
3-21     pharmacist to complete a graduate pharmacy education program
3-22     approved by the Texas State Board of Pharmacy for the specialty in
3-23     which the resident pharmacist seeks certification.
3-24           Sec. 61.856.  PROGRAM FUNDING.  (a)  The legislature may
3-25     appropriate revenue to the board to fund the pharmacy residency
3-26     program.
3-27           (b)  Funds appropriated and distributed under this subchapter
 4-1     may not be transferred or diverted from the pharmacy residency
 4-2     program.
 4-3           (c)  From program funds, the comptroller shall issue a
 4-4     warrant to a pharmacy school or other entity designated by the
 4-5     board to receive funds under this subchapter.
 4-6           Sec. 61.857.  STATE SUPPORT OF RESIDENT PHARMACIST
 4-7     COMPENSATION.  (a)  To supplement the compensation of resident
 4-8     pharmacists, the board may provide grants to schools of pharmacy in
 4-9     amounts not to exceed $10,000 in a fiscal year for each resident
4-10     pharmacist position approved by the board and filled by the
4-11     applicable school for that year.
4-12           (b)  A school of pharmacy may receive funds under this
4-13     section for a resident pharmacist position in any year only if the
4-14     school and the primary teaching pharmacy each contribute at least
4-15     $10,000 toward the compensation of the resident pharmacist for that
4-16     year.
4-17           (c)  If a resident pharmacist does not perform in that
4-18     capacity during an entire fiscal year, the school of pharmacy shall
4-19     reduce proportionately the compensation paid to the person to cover
4-20     only the part of the fiscal year during which the person performed
4-21     the person's duties as a resident pharmacist.
4-22           (d)  If a person is compensated by an agency or institution
4-23     of the federal government or by any other agency or institution,
4-24     other than a primary teaching pharmacy, for the person's
4-25     performance of the person's duties as a resident pharmacist, the
4-26     school of pharmacy shall reduce the compensation that would
4-27     otherwise be paid to the person by an amount equal to the amount of
 5-1     the compensation received by the person from the agency or
 5-2     institution.
 5-3           (e)  If the school receives from an agency or institution of
 5-4     the federal government or from any other agency or institution,
 5-5     other than a primary teaching pharmacy, compensation for a person's
 5-6     performance of the person's duties as a resident pharmacist to or
 5-7     for the benefit of the agency or institution, the compensation that
 5-8     may be paid to the resident pharmacist from funds awarded for that
 5-9     position under this section is reduced by the amount received from
5-10     the other agency or institution.
5-11           (f)  To qualify for supplemental compensation provided under
5-12     this section, a resident pharmacist must enroll for at least nine
5-13     semester credit hours each fall and spring semester and for at
5-14     least six semester credit hours each summer term in graduate
5-15     pharmacy education experiential courses.  The resident pharmacist
5-16     is exempt from fees required for enrollment, other than tuition.
5-17           Sec. 61.858.  PLACEMENT OF RESIDENT PHARMACISTS IF FULL
5-18     FUNDING NOT AVAILABLE.  (a)  If a school of pharmacy determines
5-19     that it does not have sufficient available funds from legislative
5-20     appropriations and other sources to support adequately the full
5-21     number of resident pharmacists that the school considers necessary
5-22     to carry out the purposes of the school, the school may assign and
5-23     place for education and training a resident pharmacist who cannot
5-24     be supported adequately with available funds in a primary teaching
5-25     pharmacy with which the school has a resident pharmacist
5-26     affiliation agreement.
5-27           (b)  During the period for which a resident pharmacist is
 6-1     assigned and placed in a primary teaching pharmacy under this
 6-2     section, the resident pharmacist shall receive compensation
 6-3     primarily from the pharmacy.
 6-4           (c)  A resident pharmacist affiliation agreement between the
 6-5     school and the primary teaching pharmacy must describe the exact
 6-6     method and manner of compensating the resident pharmacist.
 6-7           Sec. 61.859.  ADDITIONAL FUNDING TO SUPPORT GRADUATE PHARMACY
 6-8     EDUCATION PROGRAMS.  (a)  The board shall administer a program to
 6-9     support graduate pharmacy education programs in this state
6-10     consistent with the needs of this state for graduate pharmacy
6-11     education and the training of resident pharmacists in appropriate
6-12     fields and specialties.
6-13           (b)  From funds available to the program, the board may make
6-14     grants or formula distributions to a school of pharmacy or other
6-15     entity to:
6-16                 (1)  support appropriate graduate pharmacy education
6-17     programs or activities for which adequate funds are not otherwise
6-18     available; or
6-19                 (2)  foster new or expanded graduate pharmacy education
6-20     programs or activities that the board determines will address the
6-21     state's needs for graduate pharmacy education.
6-22           (c)  To be eligible for a grant or distribution under this
6-23     section, a school or other entity must incur the costs of faculty
6-24     education or supervision in a graduate pharmacy education program
6-25     or the costs of compensating a resident pharmacist in the program.
6-26     The board shall take those incurred costs into account in making
6-27     grants or formula distributions under this section.
 7-1           (d)  The program is funded by appropriations, by gifts,
 7-2     grants, and donations made to support the program, and by any other
 7-3     funds the board obtains for the program, including federal funds.
 7-4           (e)  An amount granted or distributed to a school or other
 7-5     entity under the program may be used only to cover expenses of
 7-6     training resident pharmacists participating in the particular
 7-7     program or activity for which the grant or distribution is made in
 7-8     accordance with any conditions imposed by the board.  The amount
 7-9     may not be spent for the general support of the school or other
7-10     entity.
7-11           Sec. 61.860.  ADVISORY COMMITTEE.  (a)  The board shall
7-12     appoint an advisory committee to advise the board regarding the
7-13     development and administration of the pharmacy residency program,
7-14     including evaluating requests for grants and establishing formulas
7-15     for distribution of funds under the program.
7-16           (b)  The advisory committee consists of:
7-17                 (1)  the executive director of the Texas State Board of
7-18     Pharmacy or the executive director's designee;
7-19                 (2)  the executive director of the Texas State Board of
7-20     Medical Examiners or the executive director's designee;
7-21                 (3)  a physician participating in a health-related
7-22     residency program;
7-23                 (4)  the dean of each school of pharmacy, or the dean's
7-24     designee, who serve as nonvoting members; and
7-25                 (5)  the following members appointed by the board:
7-26                       (A)  four pharmacists in private practice, who
7-27     are recommended to the board by the Texas State Board of Pharmacy;
 8-1                       (B)  one resident pharmacist, who serves as a
 8-2     nonvoting member; and
 8-3                       (C)  one pharmacy student, who serves as a
 8-4     nonvoting member.
 8-5           (c)  Of the pharmacist members in private practice, two must
 8-6     be active in community pharmacy practice, and two must be active in
 8-7     hospital pharmacy practice.
 8-8           (d)  Members of the advisory committee serve staggered
 8-9     three-year terms.  The board shall appoint the initial members to
8-10     terms of one, two, or three years as necessary so that one-third of
8-11     the members' terms expire each year, as nearly as practicable.
8-12           (e)  The advisory committee shall elect one of its members as
8-13     presiding officer for a one-year term.
8-14           (f)  The advisory committee shall meet at least once each
8-15     year and as often as requested by the board or called into meeting
8-16     by the committee's presiding officer.
8-17           (g)  A member of the advisory committee may not receive
8-18     compensation for committee service but may receive reimbursement
8-19     for travel to official meetings according to policies established
8-20     by the board.
8-21           Sec. 61.861.  DUTIES OF ADVISORY COMMITTEE.  The advisory
8-22     committee shall:
8-23                 (1)  review applications for the funding of graduate
8-24     pharmacy education programs and make recommendations for approval
8-25     or disapproval of those applications;
8-26                 (2)  make recommendations relating to the standards and
8-27     criteria for approval of grants and for the development of formulas
 9-1     for distribution of funds under the pharmacy residency program;
 9-2                 (3)  recommend to the board an allocation of funds
 9-3     among schools of pharmacy;
 9-4                 (4)  review applications for the funding of faculty
 9-5     preceptor positions, make recommendations for approval or
 9-6     disapproval of those applications, make recommendations relating to
 9-7     the standards and criteria for approval of those applications,
 9-8     monitor compliance with the contractual conditions associated with
 9-9     funding faculty preceptor positions, and evaluate success in
9-10     increasing the number of those positions; and
9-11                 (5)  perform other duties assigned by the board.
9-12           Sec. 61.862.  APPLICATION BY SCHOOL OF PHARMACY FOR FUNDING.
9-13     A school of pharmacy must include in an application for funds under
9-14     this subchapter:
9-15                 (1)  the names of the school and the dean of the
9-16     school, the mailing address of the school, and the accreditation
9-17     status for the undergraduate and graduate pharmacy programs of the
9-18     school;
9-19                 (2)  the number of resident pharmacist positions and
9-20     primary teaching pharmacies for which the school is requesting
9-21     funding;
9-22                 (3)  for each primary teaching pharmacy, the names of
9-23     the pharmacy, as recorded on its permit, and of the
9-24     pharmacist-in-charge, the mailing address of the pharmacy, and the
9-25     accreditation status of the pharmacy;
9-26                 (4)  a description of the learning objectives and
9-27     minimum competencies required of resident pharmacists at each
 10-1    primary teaching pharmacy;
 10-2                (5)  a description of the learning activities and
 10-3    resident pharmacists' duties at each primary teaching pharmacy, and
 10-4    the time associated with each activity or duty;
 10-5                (6)  the name of the faculty preceptor responsible for
 10-6    the learning program at each primary teaching pharmacy, and a
 10-7    description of the preceptor's credentials;
 10-8                (7)  the amount and form of compensation to be provided
 10-9    to each resident pharmacist;
10-10                (8)  a copy of the resident pharmacist affiliation
10-11    agreement between the school and the primary teaching pharmacy; and
10-12                (9)  other information required by the board.
10-13          Sec. 61.863.  FUNDING OF FACULTY PRECEPTOR POSITIONS.  (a)  A
10-14    school of pharmacy may apply and receive a grant under this section
10-15    to support full-time, affiliated faculty preceptors who supervise
10-16    accredited pharmacy residencies.
10-17          (b)  The advisory committee shall recommend to the board an
10-18    allocation of faculty preceptor positions that are to receive funds
10-19    under this section.
10-20          (c)  An allocation of funds under this section must take into
10-21    account the following factors:
10-22                (1)  the faculty-student ratio in community pharmacy
10-23    residencies at each applicant school;
10-24                (2)  the length of time a budgeted faculty preceptor
10-25    position has gone unfilled and whether the position is a new
10-26    faculty preceptor position; and
10-27                (3)  other factors determined by the board.
 11-1          (d)  Once funds are granted to support a faculty preceptor
 11-2    position affiliated with a school, the board shall continue to
 11-3    grant funds to support that position for a period not to exceed one
 11-4    additional calendar year.  After that time, the school shall
 11-5    provide an amount equal to the annualized amount of the grant in
 11-6    its operating budget to maintain the level of compensation for the
 11-7    position for two years after the grant period has ended.
 11-8          (e)  The board may use not more than 10 percent of the total
 11-9    amount appropriated for the pharmacy residency program under this
11-10    subchapter to fund faculty preceptor positions under this section.
11-11          (f)  The board may solicit, receive, and spend grants, gifts,
11-12    and donations from public and private sources for purposes of this
11-13    section.
11-14          SECTION 2.  (a)  On the effective date of this Act, the
11-15    comptroller shall transfer $850,000 from the State Board of
11-16    Pharmacy fund account to the undedicated portion of the general
11-17    revenue fund.
11-18          (b)  The legislature may appropriate funds transferred under
11-19    Subsection (a)  of this section only for the pharmacy residency
11-20    program established under Subchapter T, Chapter 61, Education Code,
11-21    as added by this Act.
11-22          SECTION 3.  This Act takes effect September 1, 1999.
11-23          SECTION 4.  The importance of this legislation and the
11-24    crowded condition of the calendars in both houses create an
11-25    emergency and an imperative public necessity that the
11-26    constitutional rule requiring bills to be read on three several
11-27    days in each house be suspended, and this rule is hereby suspended.