SRC-MKV S.B. 894 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 894
77R2403 MCK-DBy: Moncrief
Health & Human Services
3/20/2001
As Filed


DIGEST AND PURPOSE 

Texas spends a considerable amount of state funds on prescription drugs,
however, the state has not explored the possibility of purchasing all
pharmaceuticals for state agencies in bulk.   
As proposed, S.B. 894 amends the Health and Safety Code by adding Chapter
110 to create an interagency council on bulk purchasing.  The purpose of
the council is to coordinate the purchasing efforts of the agencies and
negotiate lower prices on drugs by purchasing in bulk. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Title 2E, Health and Safety Code, by adding Chapter 110,
as follows: 


CHAPTER 110.  INTERAGENCY COUNCIL ON PHARMACEUTICALS BULK PURCHASING

Sec. 110.001.  DEFINITION.  Defines "council" as the Interagency Council on
Pharmaceuticals Bulk Purchasing. 

Sec. 110.002.  BULK PURCHASING COUNCIL.  Provides that the council is
composed of one officer or employee from certain agencies, appointed by the
administrative head of that agency. 

Sec. 110.003.  PRESIDING OFFICER.  Provides that the position of presiding
officer rotates among the members of the council according to the
procedures adopted by the council. Provides that a term as presiding
officer is two years and expires on February 1 of each oddnumbered year. 

Sec. 110.004.  COMPENSATION.  Provides that service on the council is an
additional duty of a member's office or employment.  Entitles a member to
reimbursement of travel expenses incurred by the member while conducting
the business of the council, as provided by the General Appropriations Act,
but provides that the member is not entitled to compensation. 

Sec.  110.005.  SUPPORT STAFF.  Requires the council's member agencies to
provide the staff for the council. 

Sec. 110.006.  COUNCIL POWERS AND DUTIES.  (a) Requires the council to
develop procedures that member agencies are required to follow in
purchasing pharmaceuticals. 

(b) Requires the council to designate one member agency to be the central
purchasing  agency for purchasing pharmaceuticals. 

(c) Requires the council to use existing distribution networks to
distribute the pharmaceuticals. 

Sec. 110.007.  MEMORANDUM OF UNDERSTANDING.  Requires each state agency
represented on the council to enter into a memorandum of understanding with
the central purchasing agency to purchase pharmaceuticals. 

Sec. 110.008.  REPORT.  Requires the council to file a report with the
Legislative Budget Board that details the amount of money the state saves
by purchasing pharmaceuticals in bulk. 

SECTION 2.  Effective date: September 1, 2001.