1-1     By:  Moncrief, et al.                                  S.B. No. 894
 1-2           (In the Senate - Filed February 23, 2001; February 26, 2001,
 1-3     read first time and referred to Committee on Health and Human
 1-4     Services; April 9, 2001, reported favorably by the following vote:
 1-5     Yeas 7, Nays 0; April 9, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to bulk purchasing of prescription drugs by certain state
 1-9     agencies.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Subtitle E, Title 2, Health and Safety Code, is
1-12     amended by adding Chapter 110 to read as follows:
1-13                    CHAPTER 110.  INTERAGENCY COUNCIL ON
1-14                       PHARMACEUTICALS BULK PURCHASING
1-15           Sec. 110.001.  DEFINITION.  In this chapter, "council" means
1-16     the Interagency Council on Pharmaceuticals Bulk Purchasing.
1-17           Sec. 110.002.  BULK PURCHASING COUNCIL.  The Interagency
1-18     Council on Pharmaceuticals Bulk Purchasing is composed of one
1-19     officer or employee from each of the following agencies, appointed
1-20     by the administrative head of that agency:
1-21                 (1)  the Texas Department of Health;
1-22                 (2)  the Texas Department of Mental Health and Mental
1-23     Retardation;
1-24                 (3)  the Texas Department of Criminal Justice;
1-25                 (4)  the Employees Retirement System of Texas;
1-26                 (5)  the Teacher Retirement System of Texas; and
1-27                 (6)  any other agency that purchases pharmaceuticals.
1-28           Sec. 110.003.  PRESIDING OFFICER.  The position of presiding
1-29     officer rotates among the members of the council according to the
1-30     procedures adopted by the council.  A term as presiding officer is
1-31     two years and expires on February 1 of each odd-numbered year.
1-32           Sec. 110.004.  COMPENSATION.  Service on the council is an
1-33     additional duty of a member's office or employment.  A member of
1-34     the council is not entitled to compensation, but is entitled to
1-35     reimbursement of travel expenses incurred by the member while
1-36     conducting the business of the council, as provided in the General
1-37     Appropriations Act.
1-38           Sec. 110.005.  SUPPORT STAFF.  The council's member agencies
1-39     shall provide the staff for the council.
1-40           Sec. 110.006.  COUNCIL POWERS AND DUTIES.  (a)  The council
1-41     shall develop procedures that member agencies must follow in
1-42     purchasing pharmaceuticals.
1-43           (b)  The council shall designate one member agency to be the
1-44     central purchasing agency for purchasing pharmaceuticals.
1-45           (c)  The council shall use existing distribution networks to
1-46     distribute the pharmaceuticals.
1-47           Sec. 110.007.  MEMORANDUM OF UNDERSTANDING.  Each state
1-48     agency represented on the council shall enter into a memorandum of
1-49     understanding with the central purchasing agency to purchase
1-50     pharmaceuticals.
1-51           Sec. 110.008.  REPORT.  The council shall file a report with
1-52     the Legislative Budget Board that details the amount of money the
1-53     state saves by purchasing pharmaceuticals in bulk.
1-54           SECTION 2.  This Act takes effect September 1, 2001.
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