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Amend CSHB 3486 as follows:                                                  
	(1)  On page 2, strike lines 7 through 9 and substitute the 
following:       
	(b)  A pharmacist for the pharmacy shall examine a drug 
returned under this section to ensure the integrity of the drug 
product.  A health care facility may not return a drug that:
		(1)  has been compounded;                                              
		(2)  appears on inspection to be adulterated;                          
		(3)  requires refrigeration; or                                        
		(4)  has less than 120 days until the expiration date or 
end of the shelf life.
	(2)  On page 2, lines 12 and 13, strike "health care 
facility" and substitute "state Medicaid program
	(3)  On page 2, between lines 13 and 14, insert the 
following:               
	(e)  The board shall adopt the rules, policies, and 
procedures necessary to administer this section, including rules 
that require a health care facility to inform the Health and Human 
Services Commission of medicines returned to a pharmacy under this 
section.
	(4)  Insert the following appropriately numbered SECTIONS 
and renumber subsequent SECTIONS of the bill accordingly:
	SECTION __. Section 32.028, Human Resources Code, is amended 
by adding Subsection (i), (j), and (k) to read as follows:
	(i)  The Health and Human Services Commission shall adopt 
rules governing the determination of the amount of reimbursement or 
credit for restocking drugs under Section 562.1085, Occupations 
Code, that recognize the costs of processing the drugs, including 
the cost of:
		(1)  reporting the drug's prescription number and date 
of original issue;
		(2)  verifying whether the drug's expiration date or 
the drug's recommended shelf life exceeds 120 days;
		(3)  determining the source of payment; and                            
		(4)  preparing credit records.                                         
	(j)  The commission shall provide an electronic system for 
the issuance of credit for returned drugs that complies with the 
Health Insurance Portability and Accountability Act of 1996, Pub. 
L. 104-191, as amended.  To ensure a cost-effective system, only 
drugs for which the credit exceeds the cost of the restocking fee by 
at least 100 percent are eligible for credit.
	(k)  The commission shall establish a task force to develop 
the rules necessary to implement Subsections (i) and (j).  The task 
force must include representatives of nursing facilities and long- 
term care facilities.
	SECTION __. The Health and Human Services Commission shall 
adopt the rules required by Section 32.028(i) and (j), Human 
Resources Code, as added by this Act, not later than December 1, 
2003.