77R12706 MCK-D
By Gray, Brown of Brazos, Eiland, et al. H.B. No. 915
Substitute the following for H.B. No. 915:
By Gray C.S.H.B. No. 915
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to bulk purchasing of prescription drugs by certain state
1-3 agencies.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subtitle E, Title 2, Health and Safety Code, is
1-6 amended by adding Chapter 110 to read as follows:
1-7 CHAPTER 110. INTERAGENCY COUNCIL ON
1-8 PHARMACEUTICALS BULK PURCHASING
1-9 Sec. 110.001. DEFINITION. In this chapter, "council" means
1-10 the Interagency Council on Pharmaceuticals Bulk Purchasing.
1-11 Sec. 110.002. BULK PURCHASING COUNCIL. The Interagency
1-12 Council on Pharmaceuticals Bulk Purchasing is composed of:
1-13 (1) one officer or employee from each of the following
1-14 agencies, appointed by the administrative head of that agency:
1-15 (A) the Texas Department of Health;
1-16 (B) the Texas Department of Mental Health and
1-17 Mental Retardation;
1-18 (C) the Texas Department of Criminal Justice;
1-19 (D) the Employees Retirement System of Texas;
1-20 and
1-21 (E) the Teacher Retirement System of Texas; and
1-22 (2) an officer from any other agency that purchases
1-23 pharmaceuticals, appointed by the commissioner of health and human
1-24 services.
2-1 Sec. 110.003. PRESIDING OFFICER. The position of presiding
2-2 officer rotates among the members of the council according to the
2-3 procedures adopted by the council. A term as presiding officer is
2-4 two years and expires on February 1 of each odd-numbered year.
2-5 Sec. 110.004. COMPENSATION. Service on the council is an
2-6 additional duty of a member's office or employment. A member of
2-7 the council is not entitled to compensation, but is entitled to
2-8 reimbursement of travel expenses incurred by the member while
2-9 conducting the business of the council, as provided in the General
2-10 Appropriations Act.
2-11 Sec. 110.005. SUPPORT STAFF. The council's member agencies
2-12 shall provide the staff for the council.
2-13 Sec. 110.006. COUNCIL POWERS AND DUTIES. (a) The council
2-14 shall develop procedures that member agencies must follow in
2-15 purchasing pharmaceuticals. A member agency may elect not to
2-16 follow the council's procedures if the agency can purchase the
2-17 pharmaceuticals for a lower price than through the council. An
2-18 agency that does not follow the council's procedures shall report
2-19 to the council:
2-20 (1) the purchase price for the pharmaceuticals; and
2-21 (2) the name of the wholesaler or retailer selling the
2-22 pharmaceuticals.
2-23 (b) The council shall designate one member agency to be the
2-24 central purchasing agency for purchasing pharmaceuticals.
2-25 (c) The council shall use existing distribution networks,
2-26 including wholesale and retail distributors, to distribute the
2-27 pharmaceuticals.
3-1 (d) The council shall:
3-2 (1) investigate any and all options for better
3-3 purchasing power, including expanding Medicaid purchasing,
3-4 qualifying for participation in purchasing programs under 42 U.S.C.
3-5 Section 256b, hospital disproportionate share purchasing, and
3-6 health department and federally qualified health center purchasing;
3-7 and
3-8 (2) study and make recommendations regarding drug
3-9 utilization review, prior authorization, the use of restrictive
3-10 formularies, the use of mail order programs, copayment structure,
3-11 and limits on the number of prescriptions for non-life sustaining
3-12 drugs.
3-13 SECTION 2. Subchapter E, Chapter 431, Health and Safety
3-14 Code, is amended by adding Section 431.116 to read as follows:
3-15 Sec. 431.116. AVERAGE MANUFACTURER PRICE. (a) In this
3-16 section, "average manufacturer price" has the meaning assigned by
3-17 42 U.S.C. Section 1396r-8(k), as amended.
3-18 (b) A person who manufactures a drug that is sold in this
3-19 state shall file with the department:
3-20 (1) the average manufacturer price for the drug; and
3-21 (2) the price that each wholesaler in this state pays
3-22 the manufacturer to purchase the drug.
3-23 (c) The information required under Subsection (b) must be
3-24 filed annually or more frequently as determined by the department.
3-25 (d) The department and the attorney general may investigate
3-26 the manufacturer to determine the accuracy of the information
3-27 provided under Subsection (b).
4-1 SECTION 3. Subchapter I, Chapter 431, Health and Safety
4-2 Code, is amended by adding Section 431.208 to read as follows:
4-3 Sec. 431.208. REPORTING OF PURCHASE PRICE. (a) A person
4-4 who engages in the wholesale distribution of drugs in this state
4-5 shall file with the department information showing the purchase
4-6 price the distributor pays for each drug the distributor sells in
4-7 this state.
4-8 (b) The information required under Subsection (a) must be
4-9 filed annually or more frequently as determined by the department.
4-10 (c) The department and the attorney general may investigate
4-11 the distributor to determine the accuracy of the information
4-12 provided under Subsection (a).
4-13 SECTION 4. This Act takes effect September 1, 2001.