By:  Moncrief, et al.                                  S.B. No. 894
                                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 one
1-13     officer or employee from each of the following agencies, appointed
1-14     by the administrative head of that agency:
1-15                 (1)  the Texas Department of Health;
1-16                 (2)  the Texas Department of Mental Health and Mental
1-17     Retardation;
1-18                 (3)  the Texas Department of Criminal Justice;
1-19                 (4)  the Employees Retirement System of Texas;
1-20                 (5)  the Teacher Retirement System of Texas; and
1-21                 (6)  any other agency that purchases pharmaceuticals.
1-22           Sec. 110.003.  PRESIDING OFFICER.  The position of presiding
1-23     officer rotates among the members of the council according to the
1-24     procedures adopted by the council.  A term as presiding officer is
1-25     two years and expires on February 1 of each odd-numbered year.
 2-1           Sec. 110.004.  COMPENSATION.  Service on the council is an
 2-2     additional duty of a member's office or employment.  A member of
 2-3     the council is not entitled to compensation, but is entitled to
 2-4     reimbursement of travel expenses incurred by the member while
 2-5     conducting the business of the council, as provided in the General
 2-6     Appropriations Act.
 2-7           Sec. 110.005.  SUPPORT STAFF.  The council's member agencies
 2-8     shall provide the staff for the council.
 2-9           Sec. 110.006.  COUNCIL POWERS AND DUTIES.  (a)  The council
2-10     shall develop procedures that member agencies must follow in
2-11     purchasing pharmaceuticals other than medical assistance under the
2-12     vendor drug program.
2-13           (b)  The council shall designate one member agency to be the
2-14     central purchasing agency for purchasing pharmaceuticals.
2-15           (c)  The council shall use existing distribution networks to
2-16     distribute the pharmaceuticals.
2-17           Sec. 110.007.  MEMORANDUM OF UNDERSTANDING.  Each state
2-18     agency represented on the council shall enter into a memorandum of
2-19     understanding with the central purchasing agency to purchase
2-20     pharmaceuticals.
2-21           Sec. 110.008.  REPORT.  The council shall file a report with
2-22     the Legislative Budget Board that details the amount of money the
2-23     state saves by purchasing pharmaceuticals in bulk.
2-24           SECTION 2.  This Act takes effect September 1, 2001.