1-1                                   AN ACT
 1-2     relating to the regulation of telepharmacy as a method to dispense
 1-3     drugs.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter C, Chapter 562, Occupations Code, is
 1-6     amended by adding Section 562.110 to read as follows:
 1-7           Sec. 562.110.  TELEPHARMACY SYSTEMS.  (a)  In this section,
 1-8     "telepharmacy system" means a system that monitors the dispensing
 1-9     of prescription drugs and provides for related drug use review and
1-10     patient counseling services by an electronic method, including the
1-11     use of the following types of technology:
1-12                 (1)  audio and video;
1-13                 (2)  still image capture; and
1-14                 (3)  store and forward.
1-15           (b)  A Class A or Class C pharmacy located in this state may
1-16     provide pharmacy services, including the dispensing of drugs,
1-17     through a telepharmacy system in a facility that is not at the same
1-18     location as the Class A or Class C pharmacy.
1-19           (c)  A telepharmacy system is required to be under the
1-20     continuous supervision of a pharmacist as determined by board rule.
1-21     To qualify as continuous supervision for a telepharmacy system, the
1-22     pharmacist is not required to be physically present at the site of
1-23     the telepharmacy system.  The pharmacist shall supervise the system
1-24     electronically by audio and video communication.
1-25           (d)  A telepharmacy system may be located only at a health
 2-1     care facility in this state that is regulated by this state or the
 2-2     United States.
 2-3           (e)  The board shall adopt rules regarding the use of a
 2-4     telepharmacy system under this section, including:
 2-5                 (1)  the types of health care facilities at which a
 2-6     telepharmacy system may be located, which must include the
 2-7     following facilities:
 2-8                       (A)  a clinic designated as a rural health clinic
 2-9     regulated under 42 U.S.C. Section 1395x(aa), as amended; and
2-10                       (B)  a health center as defined by 42 U.S.C.
2-11     Section 254b, as amended;
2-12                 (2)  the areas that qualify under Subsection (f);
2-13                 (3)  recordkeeping requirements; and
2-14                 (4)  security requirements.
2-15           (f)  A telepharmacy system may not be located in a community
2-16     in which a Class A or Class C pharmacy is located as determined by
2-17     board rule.  If a Class A or Class C pharmacy is established in a
2-18     community in which a telepharmacy system has been located under
2-19     this section, the telepharmacy system may continue to operate in
2-20     that community.
2-21           SECTION 2.  Section 57.042, Utilities Code, is amended by
2-22     adding Subdivision (12) to read as follows:
2-23                 (12)  "Telepharmacy system" means a system that
2-24     monitors the dispensing of prescription drugs and provides for
2-25     related drug use review and patient counseling services by an
2-26     electronic method, including the use of the following types of
 3-1     technology:
 3-2                       (A)  audio and video;
 3-3                       (B)  still image capture; and
 3-4                       (C)  store and forward.
 3-5           SECTION 3.  Subsection (a), Section 57.047, Utilities Code,
 3-6     is amended to read as follows:
 3-7           (a)  The board may award a grant to a project or proposal
 3-8     that:
 3-9                 (1)  provides equipment and infrastructure necessary
3-10     for:
3-11                       (A)  distance learning;
3-12                       (B)  an information sharing program of a library;
3-13     [or]
3-14                       (C)  telemedicine services; or
3-15                       (D)  a telepharmacy system;
3-16                 (2)  develops and implements the initial or
3-17     prototypical delivery of a course or other distance learning
3-18     material;
3-19                 (3)  trains teachers, faculty, librarians, or
3-20     technicians in the use of distance learning or information sharing
3-21     materials and equipment;
3-22                 (4)  develops a curriculum or instructional material
3-23     specially suited for telecommunications delivery;
3-24                 (5)  provides electronic information; or
3-25                 (6)  establishes or carries out an information sharing
3-26     program.
 4-1           SECTION 4.  Subsection (a), Section 58.253, Utilities Code,
 4-2     is amended to read as follows:
 4-3           (a)  On customer request, an electing company shall provide
 4-4     private network services to:
 4-5                 (1)  an educational institution;
 4-6                 (2)  a library;
 4-7                 (3)  a nonprofit telemedicine center;
 4-8                 (4)  a public or not-for-profit hospital;
 4-9                 (5)  a project funded by the telecommunications
4-10     infrastructure fund under Subchapter C, Chapter 57, except for a
4-11     telepharmacy system; or
4-12                 (6)  a legally constituted consortium or group of
4-13     entities listed in this subsection.
4-14           SECTION 5.  (a)  This Act takes effect September 1, 2001.
4-15           (b)  Not later than February 28, 2002, the Texas State Board
4-16     of Pharmacy shall adopt the rules required by Section 562.110,
4-17     Occupations Code, as added by this Act.  Pharmacy services may not
4-18     be provided through a telepharmacy system under Section 562.110,
4-19     Occupations Code, as added by this Act, until the Texas State Board
4-20     of Pharmacy adopts those rules.
                                                                 S.B. No. 65
            _______________________________     _______________________________
                President of the Senate              Speaker of the House
                  I hereby certify that S.B. No. 65 passed the Senate on
            March 29, 2001, by the following vote:  Yeas 30, Nays 0, one
            present not voting; May 3, 2001, Senate refused to concur in House
            amendments and requested appointment of Conference Committee;
            May 4, 2001, House granted request of the Senate; May 26, 2001,
            Senate adopted Conference Committee Report by a viva-voce vote.
                                                _______________________________
                                                    Secretary of the Senate
                  I hereby certify that S.B. No. 65 passed the House, with
            amendments, on April 26, 2001, by a non-record vote; May 4, 2001,
            House granted request of the Senate for appointment of Conference
            Committee; May 24, 2001, House adopted Conference Committee Report
            by a non-record vote.
                                                _______________________________
                                                    Chief Clerk of the House
            Approved:
            _______________________________
                         Date
            _______________________________
                       Governor