By:  Madla                                             S.B. No. 768
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the regulation of the practice of pharmacy and the
 1-3     dispensing of certain drugs.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subdivisions (12), (30), and (36), Section
 1-6     551.003, Occupations Code, are amended to read as follows:
 1-7                 (12)  "Dangerous drug" means a drug or device that:
 1-8                       (A)  is not included in Penalty Group 1, 2, 3, or
 1-9     4, Chapter 481, Health and Safety Code, and is unsafe for
1-10     self-medication; or
1-11                       (B)  bears or is required to bear the legend:
1-12                             (i)  "Caution:  federal law prohibits
1-13     dispensing without prescription" or "Rx only" or another legend
1-14     that complies with federal law; or
1-15                             (ii)  "Caution:  federal law restricts this
1-16     drug to use by or on the order of a licensed veterinarian."
1-17                 (30)  "Pharmacist-intern" means:
1-18                       (A)  an undergraduate student who is enrolled in
1-19     the professional sequence of a college of pharmacy approved by the
1-20     board and who is participating in a [school-based] board-approved
1-21     internship program; or
1-22                       (B)  a graduate of a college of pharmacy who is
1-23     participating in a board-approved internship.
1-24                 (36)  "Prescription drug" means:
1-25                       (A)  a substance for which federal or state law
 2-1     requires a prescription before the substance may be legally
 2-2     dispensed to the public;
 2-3                       (B)  a drug or device that under federal law is
 2-4     required, before being dispensed or delivered, to be labeled with
 2-5     [either of] the statement [following statements]:
 2-6                             (i)  "Caution:  federal law prohibits
 2-7     dispensing without prescription" or "Rx only" or another legend
 2-8     that complies with federal law; or
 2-9                             (ii)  "Caution:  federal law restricts this
2-10     drug to use by or on the order of a licensed veterinarian"; or
2-11                       (C)  a drug or device that is required by federal
2-12     or state statute or regulation to be dispensed on prescription or
2-13     that is restricted to use by a practitioner only.
2-14           SECTION 2.  Subsection (d), Section 559.003, Occupations
2-15     Code, is amended to read as follows:
2-16           (d)  If a person's license has been expired for one year or
2-17     more, the person's license is considered to have been canceled and
2-18     the person may not renew the license, unless the license is the
2-19     subject of a pending investigation or disciplinary action.
2-20           SECTION 3.  Section 559.053, Occupations Code, is amended to
2-21     read as follows:
2-22           Sec. 559.053.  PROGRAM HOURS REQUIRED.  A license holder
2-23     satisfies the continuing education requirement by presenting
2-24     evidence satisfactory to the board of completion of at least 30
2-25     [24] hours of continuing education during the preceding 24 months
2-26     of the person's license period.
 3-1           SECTION 4.  Subsection (a), Section 560.002, Occupations
 3-2     Code, is amended to read as follows:
 3-3           (a)  A person may not display in or on a place of business
 3-4     the word "pharmacy" or "apothecary" in any language, any word or
 3-5     combination of words of the same or similar meaning, or a graphic
 3-6     representation that would lead or tend to lead the public to
 3-7     believe that the business is a pharmacy unless the facility is a
 3-8     pharmacy licensed under this chapter.
 3-9           SECTION 5.  Section 561.005, Occupations Code, is amended to
3-10     read as follows:
3-11           Sec. 561.005.  SUSPENSION OF PHARMACY LICENSE FOR NONRENEWAL.
3-12     (a)  The board shall suspend the license and remove from the
3-13     register of licensed pharmacies the name of a pharmacy that does
3-14     not file a completed application and pay the renewal fee on or
3-15     before the date the license expires.
3-16           (b)  After review by the board, the board may determine that
3-17     Subsection (a) does not apply if the license is the subject of a
3-18     pending investigation or disciplinary action.
3-19           SECTION 6.  Section 564.002, Occupations Code, is amended to
3-20     read as follows:
3-21           Sec. 564.002.  CONFIDENTIALITY.  (a)  The records and
3-22     proceedings of the board, an authorized agent of the board, or a
3-23     pharmaceutical organization committee described under Section
3-24     564.001(a) or (b), in connection with a report under Section
3-25     564.001(a) or (b), are confidential and are not considered public
3-26     information for purposes of Chapter 552, Government Code.
 4-1           (b)  After review by the board, the board may determine that
 4-2     Subsection (a) does not apply to a disciplinary order of the board
 4-3     if the license holder has been the subject of a previous
 4-4     disciplinary order that was confidential under Subsection (a).
 4-5           SECTION 7.  Subsection (a), Section 481.074, Health and
 4-6     Safety Code, is amended to read as follows:
 4-7           (a)  A pharmacist may not:
 4-8                 (1)  dispense or deliver a controlled substance or
 4-9     cause a controlled substance to be dispensed or delivered under the
4-10     pharmacist's direction or supervision except under a valid
4-11     prescription and in the course of professional practice;
4-12                 (2)  dispense a controlled substance if the pharmacist
4-13     knows or should have known that the prescription was issued without
4-14     a valid patient-practitioner relationship;
4-15                 (3)  fill a prescription that is not prepared or issued
4-16     as prescribed by this chapter;
4-17                 (4) [(3)]  permit or allow a person who is not a
4-18     licensed pharmacist or pharmacist intern to dispense, distribute,
4-19     or in any other manner deliver a controlled substance even if under
4-20     the supervision of a pharmacist, except that after the pharmacist
4-21     or pharmacist intern has fulfilled his professional and legal
4-22     responsibilities, a nonpharmacist may complete the actual cash or
4-23     credit transaction and delivery; or
4-24                 (5) [(4)]  permit the delivery of a controlled
4-25     substance to any person not known to the pharmacist, the pharmacist
4-26     intern, or the person authorized by the pharmacist to deliver the
 5-1     controlled substance without first requiring identification of the
 5-2     person taking possession of the controlled substance, except as
 5-3     provided by Subsection (n).
 5-4           SECTION 8.  Subdivision (2), Section 483.001, Health and
 5-5     Safety Code, is amended to read as follows:
 5-6                 (2)  "Dangerous drug" means a device or a drug that is
 5-7     unsafe for self-medication and that is not included in Schedules I
 5-8     through V or Penalty Groups 1 through 4 of Chapter 481 (Texas
 5-9     Controlled Substances Act).  The term includes a device or a drug
5-10     that bears or is required to bear the legend:
5-11                       (A)  "Caution:  federal law prohibits dispensing
5-12     without prescription" or "Rx only" or another legend that complies
5-13     with federal law; or
5-14                       (B)  "Caution:  federal law restricts this drug
5-15     to use by or on the order of a licensed veterinarian."
5-16           SECTION 9.  Subsection (a), Section 483.021, Health and
5-17     Safety Code, is amended to read as follows:
5-18           (a)  A pharmacist who is requested to dispense a dangerous
5-19     drug under a prescription issued by a practitioner [described by
5-20     Section 483.001(12)(C)] shall determine, in the exercise of the
5-21     pharmacist's professional judgment, that[:]
5-22                 [(1)]  the prescription is [authentic;]
5-23                 [(2)  the prescription was issued under] a valid
5-24     prescription [patient-physician relationship; and]
5-25                 [(3)  the prescribed drug is considered necessary for
5-26     the treatment of illness].  A pharmacist may not dispense a
 6-1     dangerous drug if the pharmacist knows or should have known that
 6-2     the prescription was issued without a valid patient-practitioner
 6-3     relationship.
 6-4           SECTION 10.  (a)  In accordance with Subsection (c), Section
 6-5     311.031, Government Code, which gives effect to a substantive
 6-6     amendment enacted by the same legislature that codifies the amended
 6-7     statute, the text of Sections 559.053 and 561.005, Occupations
 6-8     Code, as set out in Sections 3 and 5 of this Act, gives effect to
 6-9     changes made by Chapter 1518, Acts of the 76th Legislature, Regular
6-10     Session, 1999.
6-11           (b)  To the extent of any conflict, this Act prevails over
6-12     another Act of the 77th Legislature, Regular Session, 2001,
6-13     relating to nonsubstantive additions to and corrections in enacted
6-14     codes.
6-15           SECTION 11.  (a)  This Act takes effect September 1, 2001.
6-16           (b)  The change in law made by this Act to Section 559.053,
6-17     Occupations Code, requiring additional hours of continuing
6-18     education, applies only to a 24-month license period that begins on
6-19     or after the effective date of this Act.  A 24-month license period
6-20     that begins before the effective date of this Act is governed by
6-21     the law in effect immediately before the effective date of this
6-22     Act, and the former law is continued in effect for that purpose.