1-1     By:  Gray, et al. (Senate Sponsor - Moncrief)         H.B. No. 1094
 1-2           (In the Senate - Received from the House April 27, 2001;
 1-3     April 30, 2001, read first time and referred to Committee on Health
 1-4     and Human Services; May 7, 2001, reported adversely, with favorable
 1-5     Committee Substitute by the following vote:  Yeas 6, Nays 0;
 1-6     May 7, 2001, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 1094                  By:  Sibley
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the creation of a state prescription drug program for
1-11     certain Medicare beneficiaries.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1. Chapter 531, Government Code, is amended by adding
1-14     Subchapter I to read as follows:
1-15               SUBCHAPTER I.  STATE PRESCRIPTION DRUG PROGRAM
1-16           Sec. 531.301.  DEVELOPMENT AND IMPLEMENTATION OF STATE
1-17     PROGRAM; FUNDING. (a)  The commission shall develop and implement a
1-18     state prescription drug program that operates in the same manner as
1-19     the vendor drug program operates in providing prescription drug
1-20     benefits to recipients of medical assistance under Chapter 32,
1-21     Human Resources Code.
1-22           (b)  A person is eligible for prescription drug benefits
1-23     under the state program if the person is:
1-24                 (1)  a qualified Medicare beneficiary, as defined by 42
1-25     U.S.C. Section 1396d(p)(1), as amended;
1-26                 (2)  a specified low-income Medicare beneficiary who is
1-27     eligible for medical assistance for Medicare cost-sharing payments
1-28     under 42 U.S.C. Section 1396a(a)(10)(E)(iii), as amended;
1-29                 (3)  a qualified disabled and working individual, as
1-30     defined by 42 U.S.C. Section 1396d(s), as amended;
1-31                 (4)  a qualifying individual who is eligible for that
1-32     assistance under 42 U.S.C. Section 1396a(a)(10)(E)(iv)(I), as
1-33     amended; or
1-34                 (5)  a qualifying individual who is eligible for that
1-35     assistance under 42 U.S.C. Section 1396a(a)(10)(E)(iv)(II), as
1-36     amended.
1-37           (c)  Prescription drugs under the state program may be funded
1-38     only with state money, unless funds are available under federal law
1-39     to fund all or part of the program.
1-40           Sec. 531.302.  RULES. (a)  The commission shall adopt all
1-41     rules necessary for implementation of the state prescription drug
1-42     program.
1-43           (b)  In adopting rules for the state prescription drug
1-44     program, the commission may:
1-45                 (1)  require a person who is eligible for prescription
1-46     drug benefits to pay a cost-sharing payment; and
1-47                 (2)  establish a drug utilization review program to
1-48     ensure the appropriate use of prescription drugs under the state
1-49     program.
1-50           Sec. 531.303.  GENERIC EQUIVALENT AUTHORIZED. In adopting
1-51     rules under the state program, the commission may require that,
1-52     unless the practitioner's signature on a prescription clearly
1-53     indicates that the prescription must be dispensed as written, the
1-54     pharmacist may select a generic equivalent of the prescribed drug.
1-55           Sec. 531.304.  PROGRAM FUNDING PRIORITIES. If money available
1-56     for the state prescription drug program is insufficient to provide
1-57     prescription drug benefits to all persons who are eligible under
1-58     Section 531.301(b), the commission shall limit the number of
1-59     enrollees based on available funding and shall provide the
1-60     prescription drug benefits to eligible persons in the following
1-61     order of priority:
1-62                 (1)  persons eligible under Section 531.301(b)(1);
1-63                 (2)  persons eligible under Section 531.301(b)(2); and
1-64                 (3)  persons eligible under Sections 531.301(b)(3),
 2-1     (4), and (5).
 2-2           SECTION 2. Not later than January 1, 2002, the Health and
 2-3     Human Services Commission shall develop and implement the state
 2-4     prescription drug program under Subchapter I, Chapter 531,
 2-5     Government Code, as added by this Act.
 2-6           SECTION 3. This Act takes effect September 1, 2001.
 2-7                                  * * * * *